My take on this is that in the USA, software development is now viewed as the creation of an asset with a lifetime of 5 or 15 years. Accordingly, its cost (including labor) can only be expensed (depreciated) over that time period.
It is this assumption that all development results in a valuable asset deriving or enabling income over time, that is contentious. A large proportion does not, yet that is not reflected in the increased tax bill applicable to all.
It is this assumption that all development results in a valuable asset deriving or enabling income over time, that is contentious. A large proportion does not, yet that is not reflected in the increased tax bill applicable to all.