Remotebase

TECH LAYOFFS - WE UNCOVER THE REASONS and how to fix it!

#codeyourfuture #layoffs #softwaredeveloper #coding https://StartupHakk.com/?live=2024.08.10-1 "Welcome to StartupHakk. I'm Spencer Thomason and here at StartupHakk we love to train Software Developers and build Custom Software Solutions. I do a lot of work as a Fractional CTO. With over a decade of executive leadership and a solid 25 years in software development, I've mastered the art of transforming technology teams and products." So I got a comment from a user (thanks anonymous49125) that sent me into some research that as a business owners, Software Developer, and frankly a US Citizen makes me terrified. So Section 174 has fundamentally changed the financial landscape for tech companies, leading to increased tax liabilities and widespread layoffs. By understanding the implications of this law and adopting strategic measures, companies can mitigate its impact and continue to thrive. It is also crucial for Congress to address the issues caused by Section 174 to support the growth and competitiveness of the tech industry. Section 174 of the Internal Revenue Code has thrown a wrench into the works for many tech companies. This law, which changes how research and development (R&D) expenses are treated, came into effect right as mass layoffs began. Previously, companies could fully expense R&D costs, including developer salaries, in the year they were incurred. Now, they must capitalize and amortize these expenses over five years. This shift has significantly increased the tax liabilities of tech companies, contributing to widespread layoffs. https://blog.pragmaticengineer.com/section-174/ https://www.reddit.com/r/cscareerquestions/comments/1csvh23/repeal_section_174_to_end_layoffs_and_save_tech/ https://remotebase.com/blog/section-174-the-reason-behind-tech-layoffs-in-us-companies https://www.resourcefulfinancepro.com/news/irs-section-174-changes-tech-firms-face-huge-tax-bills-layoffs-are-surging/ https://www.linkedin.com/pulse/us-business-tax-law-change-partially-caused-layoffs-174-levitt-mba-mrbbf/ https://www.teamblind.com/post/Section-174-causing-tech-layoffs-FDXVp1Pr