Joe's plumbing doesn't have to pay those taxes. Operational costs, including paying employees for normal operations, is deductable. But with the change, the co

Joe's plumbing doesn't have to pay those taxes. Operational costs, including paying employees for normal operations, is deductable. But with the change, the cost of R&D employees is now only partially deductible (right now, you can eventually deduct the full amount over the course of several years), and software development has to be considered R&D.