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> 4) Changes in the US tax code for how software dev costs are attributed. I don't fully understand this but seems pretty plausible.

Can you elaborate on this point? Does this mean companies can’t afford software developers?

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I think companies used to be able to deduct "R&D time" which was a very vague definition for programmers and the IRS has tightened that up.

https://www.eisneramper.com/insights/tax/impact-174-software...

yup I used to have to fill out timesheets in some places to quantify the % of work that was R&D

https://blog.pragmaticengineer.com/section-174/

In short, you used to be able to deduct the entirety of an SWE R&D costs in the year it was paid, but now you must amortize it, like you would with machinery. That means that some companies are incurring "gains" that must be taxed, whereas before they wouldn't for that year.

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