seems reasonable iff you have a tax system where this deductability is based on the product employees produce which seems strange to be but might be normal

if I understand it correctly it means the cost of this year would be written of over 5 year each year 20%, but if you keep your employees it means in the second year you have 20% write off from that year and 20% of the previous years and so one, so 5 years in still 100% write off every year

I wonder if that would motivate companies to have a more constant number of employees or more precise a similar income bill every year.

Through it would definitely mean if you had considered layoffs this year is the year to go.