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Small-Scale Question Sunday for August 18, 2024

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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Similar to if a factory bought 5 years worth of materials up front for $1 million and then spent five years producing and selling stuff for $500,000 per year.

Yes, the new regulations put software on the same footing as brick and mortar. It's extremely painful for brick and mortar too since it penalizes any capital investment. This is likely a contributing factor to why no one builds anything any more.

Further, shouldn't this actually help them pay less taxes in the long run? ... a corporation that reports a $500k loss followed by 4 years of 500k gain is going to pay taxes on 2 mil.

No. They will pay tax on 1.5 million. Losses offset future gains for tax purposes.

And if a company does actually have constant software costs every year then this will hurt the first few years before the amortization has a chance to reach equilibrium.

Exactly. This rewards incumbents at the expense of startups. It's bad for that reason alone.