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Cake day: June 9th, 2023

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  • WSJ this morning. The last bit is a stunning self own after Cannon flushed the last remaining parts of the justice system down the toilet today.

    “Leaders on both sides need to stop describing the stakes of the election in apocalyptic terms. Democracy won’t end if one or the other candidate is elected. Fascism is not aborning if Mr. Trump wins, unless you have little faith in American institutions.”

















  • The 2017 tax bill that the Republicans rammed through had a time bomb in it for software developers. Starting in 2022, companies could no longer expense R&D costs, and instead had to amortize them over 5 years. This has led to massive tax bills in 2023 for companies. I have no doubt that this is another major factor in the recent tech layoffs.

    Take an imaginary bootstrapped software business called “Acme Corp.” This company generates $1,000,000 of revenue per year running a SaaS service. It employs five engineers, and pays each $200,000. That is $1,000,000 paid in labor costs. For simplicity, we omit other costs like servers and hosting, even though those costs can also fall under the new R&D rules, and have to be amortized. So, how much taxable profit does this company make?

    In 2021, the answer would be zero profit. In 2022, the answer was $900,000 in profits(!!)

    https://newsletter.pragmaticengineer.com/p/the-pulse-will-us-companies-hire