Comment by jt2190
6 months ago
Are you asserting that software and other labor-heavy startups should raise additional private capital so that they can pay taxes before they’ve established themselves in the marketplace? I’m not sure what you mean to say exactly.
I’m saying investers should pay the full cost of R&D without assistance from taxpayers.
When the non R&D portion of the business is profitable they should start paying taxes. Assuming a company isn’t miss classifying operations as R&D it shouldn’t be a major issue.
Thanks for clarifying.
This will of course discourage “riskier” startups and dampen innovation and give more power to profitable incumbents who will have less incentive to innovate. (Perhaps the result of this looks like Europe?)
Risky startups with multiple years of R&D before revenue would be the least impacted.
You’re only paying taxes if the business is profitable ignoring investments like R&D spending.
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