opt1c

Hard to take Gary seriously calling out "outlandish claims" with "no substance" when he does the same thing in the opposite direction.

Garbage article for clicks to pay for his lifestyle, now that he's grifted his way into being an "AI Expert" paid to pontificate with no skin in the game.

The section 174 changes were never intended to go into effect and are a byproduct of the bill review process by deficit hawks. A group in the House has called for changes but a bill hasn't made it out of committee yet.

Actually, this has the most impact on startups that are close to break even or barely making profit. Let's say you make 1m ARR and have 5 software engineers at 200k/year. Prior to this tax code, you had $0 in profit to be taxed. With this change, you can only amortize 10% of software labor in the first year. Now, the IRS treats you as having 900k profit so you have ~200k in taxes to pay.

Imagine you're a small business that makes $1m ARR and you employ 5 software engineers at $200k per year. Your net income is 0.

Prior to this change in the tax code, your software labor costs for that year would all count against your income so you'd be taxed on $0 in profit.

With this tax code, you can only amortize 10% of software labor in the first year so now your business just had $900k in profit as far as the IRS is concerned. You now have to pay ~200k in taxes. You have to come up with that money somehow, and for most businesses the only short-term option is a combo of reducing costs (layoffs) and loans.

Microsoft has the most well-regarded security reputation amongst all cloud providers, it's the main reason why they were awarded the (since canceled) JEDI defense contract.