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A comment on Software firms across US facing tax bills that threaten startup survival. Parent comment

Re:Software firms across US facing tax bills that threaten s... by mminer237 on Tuesday April 18, 2023 @11:04AM (#35614929)
If you make $2,000,000 gross, spend $800,000 on operating expenses, and $1,000,000 on R&D, you practically have $200,000 profit; but you have pay $210,000 in federal tax on $1,000,000.
[ Parent | on HN ]
Re:Software firms across US facing tax bills that threaten s... by xmcqdpt2 on Wednesday April 19, 2023 @07:04AM (#35626712)
Well no, you have a 1.2M profit, and decided to reinvest 1M into R&D to produce a software asset.

It's bad that the tax treatment changes suddenly because businesses need stability, but the change itself is perfectly rational.

[ Parent | on HN ]