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Software has also benefitted from a massive tax subsidy relative to hardware, as the latter requires a massive capital investment. Hardware requires expensive r
by nickff 1y ago
Software has also benefitted from a massive tax subsidy relative to hardware, as the latter requires a massive capital investment. Hardware requires expensive real estate, and benefits from saving the spending, whereas software can exist on debt and small footprints.
- __MatrixMan__ 1y agoThat may have been the case prior to section 174, when you could invest massively in something, write it off as a loss, and then pivot to reusing it profitably, but now I think that all R&D efforts are equally discouraged.
- nickff 1y agoYou're right that the delta has been reduced, but producing physical goods still requires much more capital outlay (which is still disadvantaged).