California unemployment rises to 5.5%, worst in the U.S. as tech falters

Re:California unemployment rises to 5.5%, worst in the U.S. ... by rezonant on Sunday August 17, 2025 @07:19PM (#44935783)

> increasing corporate taxes(say after the 2028 elections if Democrats are elected) means there is less money leftover to spend on R&D.

You misunderstand how tax exemptions work.

When you make money, you need to pay taxes on that money. However, if you spend that money in certain ways, the tax code lets you take that amount of money and _deduct_ it from your overall taxable income. Thus, you pay taxes on _less_ of the money you earned. Imagine the tax rate was 100%, but you could deduct 100% of R&E expenses, and you spent 100% of your income on R&E. You would pay zero dollars in taxes.

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Re:California unemployment rises to 5.5%, worst in the U.S. ... by ivewonyoung on Sunday August 17, 2025 @08:11PM (#44936065)

> Imagine the tax rate was 100%, but you could deduct 100% of R&E expenses, and you spent 100% of your income on R&E. You would pay zero dollars in taxes.

No. The Democrats added a new minimum corporate tax last time they were in power. As I have to keep repeating, their policies and actions are all about taxing companies more which why they didn't repeal the R&D exemption removal. They consider it a tax loophole that companies abuse to pay less taxes.

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