Comment by d5lt5
1 day ago
> China grants up to 200% tax deduction on intangible assets acquired through R&D. Means your spending on AI training fees becomes a tax return amount or like appears as a magical donation deductible on the books.
This is misleading. Deduction reduces taxable income and does not provide tax return. E.g. if your taxable income is $1000 and you spent $100 on R&D and qualify for those 200%, $800 will be taxed.
Thanks for adding that, still very interesting idea. Perhaps this >100% tax deduction could eventually be applied to human labor to help incentivize employment and subsidize it with automation profits.
Although you can often take losses from a previous year to offset current income. So if you do a huge amount of capital investment you can offset against profits for years.