Comment by jart
3 years ago
That sounds pretty horrible. Am I correct in assuming though that once you get over the five year hump, you're OK? Also wouldn't startups mostly be paying devs out of VC funding rather than revenue the first five years?
3 years ago
That sounds pretty horrible. Am I correct in assuming though that once you get over the five year hump, you're OK? Also wouldn't startups mostly be paying devs out of VC funding rather than revenue the first five years?
No, you never “catch up” unless you fire every software engineer (so income and trailing five years of amortization cancel out).
Year 5 is just a steady state of no more phantom profit taxes, but you never really get that extra tax you paid back if you want to keep operating at the same level or grow.
> No, you never “catch up” unless you fire every software enginee
So Musk was following a playbook after all...
No. If you are growing and increasing expenses you’re always behind. The only case where you get ahead is if you stop growing or shrink.
That makes sense, thanks for clarifying. How do you think businesses would react to this? For example, I imagine self-hosted servers would need to be depreciated too, so the tech community invented cloud as the solution. Maybe this policy change will cause tech companies to hire more TVCs rather than FTEs?
Contractor expenses to develop software are also R&D. As would cloud expenses for your test environment, probably. More likely, companies will engage in activities that are arguably not "software development," including things like maintaining existing software.
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Have your 'office manager' do everything with 'no code' environments .. maybe with them using some sort of java to 'no code' compiler for parts.
Only if you’re not growing.