Comment by winrid
3 years ago
They're doing it this way because in the public eye big startups that write off salaries as tax expense look like tax avaiders.
In reality it will just punish bootstrapped companies.
3 years ago
They're doing it this way because in the public eye big startups that write off salaries as tax expense look like tax avaiders.
In reality it will just punish bootstrapped companies.
The public eye, as in the general public, has little idea of what's going on in the startup world and let alone specific issues like this one.
> that write off salaries as tax expense look like tax avaiders
This doesn't increase the tax burden. After 5 years, most companies will be back to paying what they are paying now. This gives you a cash boost for this year and next few ones. After that, you just killed bootstrapped companies.
I have seen a lot of rhetoric about tech companies avoiding taxes; none of it has been that salaries effect a tax dodge.