A lot of the reason Tech layoffs are happening is because developers' wages can't be deducted in full immediately any more [1,2]. (Dev wages are classed as R&D

A lot of the reason Tech layoffs are happening is because developers' wages can't be deducted in full immediately any more [1,2]. (Dev wages are classed as R&D spending). The "big beautiful bill" will reverse that, I think, reversing the original change which was legislated by the previous Trump government. What's weird and confusing about this, is that (IIUC), all other wages/salaries are immediately tax deductible. > And so, on schedule in 2022, the change to Section 174 went into effect. Companies filed their 2022 tax returns under the new rules in early 2023. And suddenly, R&D wasn’t a full, immediate write-off anymore. [1] [1] The time bomb in the tax code that's fueling mass tech layoffs: https://news.ycombinator.com/item?id=44180533 https://news.ycombinator.com/item?id=44180533 https://qz.com/tech-layoffs-tax-code-trump-section-174-microsoft-meta-1851783502 https://qz.com/tech-layoffs-tax-code-trump-section-174-micro... [2] Tell HN: Help restore the tax deduction for software dev in the US (Section 174): https://news.ycombinator.com/item?id=44226145 https://news.ycombinator.com/item?id=44226145