Comment by ricardobayes
3 years ago
Honestly if a company's business model revolved around getting 100% tax credits for dev salaries, that company should in fact go away. A 100% rebate on taxes on an already high margin and low expense business segment just feels wrong.
It's not a rebate, it's salary. For a company bringing in 1 million in revenue and paying 1 million in salary, they literally don't have any money in the bank to pay taxes because they haven't profited yet. If they profit the next year because of their new "asset" giving them long term benefits, they would pay then.
Isn't the simple solution to just not give away all of your revenue before you pay your taxes?
The two constants are death and taxes, if you don't have the revenue to pay them at your current burn rate, you either find a way to burn less or your company just isn't viable.
The idea of corporate taxes is to tax profits, not revenue
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If the company has high margins and low expenses, then their profits are already taxed. Its not like hiring one SWE makes your tax bill go to zero.