It is the solely Republican passed tax law. R&D and Software Development is no longer a deduction. It is amortized over 5 years now. Other countries are still allowing deductions. It is therefore suddenly way more expensive to have SWE in the states. This was a time bomb intentionally planted in 2017 to go off now. https://www.congress.gov/bill/115th-congress/house-bill/1/text?s=7&r=1&q=%7B%22search%22%3A%22Tax+Cuts+and+Jobs+Act%22%7D To quote - > (e) <<NOTE: 26 USC 41 note.>> Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2021. . . . . There is a bunch more of things but it is hard to follow because it reads like 'add this and strike this'. But basically - intentionally designed to blow up. And regardless the IRS says it takes effect . . . THIS YEAR. Not a single democrat voted for this time bomb, and in fact some republicans voted against it too: https://www.nytimes.com/2017/11/16/us/politics/tax-bill-house-vote.html So of course wages are going down and mass layoffs for no apparent reason. Stop letting the 'oh no AI is taking our jobs (It isnt)' doomsaying carry the narrative. It is literally just Republicans screwing things up. AI has its place but replacing SWE and R&D is not it. General AI is still decades away if it ever comes and generative AI can not do anything new or inventive and often just wrong or hallucinating. It requires millions of dollars in CPU time and thousands of people double checking its work and correcting it to produce the output (See https://time.com/6247678/openai-chatgpt-kenya-workers/ ). You've also seen some pretty immediate rollbacks of companies replacing workers with not very well thought out gen AIs. https://www.cnn.com/2023/01/25/tech/cnet-ai-tool-news-stories/index.html ro So stop complaining about AI. Learn to use it and recognize it for what it is. Another tool in the box for SWEs and R&D to make their work more efficient, not something to completely replace them and start laying blame where it belong - The maga cult. The maga cult is taking dollars out of your pocket and away from your families. Blame them, not AI. #AI #tax #republican
Wasn't there a bill to repeal this crap temporarily?
Hard to do anything to fix things when the 'maga court', eg senate has been R the whole time.
And what has Biden done to fix it? Trump sucks but what is the current administration doing to address the issue? Has he even talked about it?
Biden has 0 control over the tax law. There have been efforts to fix this, but they can't get past the senate . . .because the whole deal with the R control in senate is to not allow any laws to pass through unless Trump says it is ok. https://www.nytimes.com/2024/03/13/us/politics/tax-bill-child-credit-senate.html
Yeah yeah, everyone understands the senate gridlock, but again - has Biden even talked about it? The senate being R controlled excuse is used for literally everything dems say. I get it, it’s frustrating, but dems also have a history of still not doing jack shit even when they have control. At some point you have to stop being an apologist and really ask yourself whether or not these people actually have any interest in working for you.
Man I forgot about that stupid ass law. We’re so screwed now