If you make $2,000,000 gross, spend $800,000 on operating expenses, and $1,000,0... | Hacker News

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		mminer237 on April 18, 2023 \| parent \| context \| favorite \| on: Software firms across US facing tax bills that thr... If you make $2,000,000 gross, spend $800,000 on operating expenses, and $1,000,000 on R&D, you practically have $200,000 profit; but you have pay $210,000 in federal tax on $1,000,000.

xmcqdpt2 on April 19, 2023 [–]

Well no, you have a 1.2M profit, and decided to reinvest 1M into R&D to produce a software asset.

It's bad that the tax treatment changes suddenly because businesses need stability, but the change itself is perfectly rational.

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