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... growing firms are also penalized. Also, if a company goes bankrupt (like the majority of companies), those last 4 years of amortization just go into the government's pocket. Even if you could ignore the time value of money, it doesn't actually even out over the long run.


Yes. It also penalizes shrinking firms as you simply lose the benefit of amortization if you can’t use it.


Penalizes shrinking revenues, not shrinking firms. Shrinking firms who maintain revenue (layoffs!!) do well by winding down tax liability.


My bad you’re right!




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