Software firms across US facing tax bills that threaten survival
(I put this in a reply further down, but bringing it to the top)<p>Previously if a company has a million dollars in revenue and spends a million dollars on the salaries of software developers, this is how their taxable income might look:<p><pre><code>    1,000,000 Revenue
  - 1,000,000 Salary expense
  -----------
            0 Profit

</code></pre>
The new law would instead work like this:<p><pre><code>    1,000,000 Revenue
  -   200,000 1&#x2F;5th Salary expense
  -----------
      800,000 Profit

</code></pre>
Now the company must pay taxes on 800,000 of profit because &quot;R&amp;D salaries,&quot; which includes software devs, must be amortized over five years. Obviously the company has no wherewithal to pay, given that they made a million and spent a million. That&#x27;s the problem.