Comment by beezle
3 years ago
The change isn't really sudden and honestly I have a hard time having sympathy for those firms that were caught unaware. This provision was in the law since 2017 - anyone taking a chunk of VC money (including the VC lending it) should have been well aware of what would happen if Congress did not strike it before it took effect.
Honestly this is a bit like SVB all over again - poor management, in this case not knowing or understanding critical tax laws. And if you did know, shame on you for not contingency planning for Congressional ineptitude.
The only way to really plan for it, if you're running a small business with lower margins, is to raise prices, grow users or cut salary expenses. None of those are easy, even if you can see the tax bill coming.