The funny thing is the full write off in section 174 was pretty much the key to a bigger middle class. By repealing it, the president created an ailment that he

The funny thing is the full write off in section 174 was pretty much the key to a bigger middle class. By repealing it, the president created an ailment that he will only cure if he can get himself dictatorial powers. It is really valuable to the US tech sector and it made it pretty obvious why Silicon Valley had to get into politics this cycle. The old 174 allowed all software engineering work to be deducted on year on - you put in effort you get tax offsets for future profits. If that effort fails you can get acquired and the value of your salary work becomes someone else’s valuable tax offset. Bigger picture it make VC returns a LOT BETTER, which makes startups more viable with more funding, which makes good outcomes more likely - jobs, public companies that grow retirement of Americans, etc. For public companies it’s also really valuable - Meta can reduce its massive taxable profit by hiring all potential startup founders who would otherwise become competitors and keep them on the books with non-competes in exchange for slowly vesting equity. By the time your equity vests you are in your thirties and in child-making mindsets and startups are less tempting. When 174 expired Meta became very very different financially with all that expensive labour they couldn’t write off anymore and they laid off huge swaths of it. Because of the high interest rates, those potential competitors would struggle to raise money anyway.