> Changes to R&D amortization were a rude surprise to them, as they'd never had to amortize software development before, and didn't think of the work they do as R&D.
Precisely. They didn’t think of their work as R&D because it was not R&D. Frankly, they should have seen this coming.
> These are small businesses we're talking about. Almost all of them make under $10M in annual revenue, and the vast majority are under $2M in revenue.
What about the millions of other small businesses that don’t get special tax treatment? Restaurants, bars, plumbing companies, landscaping companies, accounting firms, etc.? Software engineers are not scientists. At the end of the day, a company is supposed to be able to stand on its own two feet, not rely on government handouts. Allowing otherwise unprofitable businesses to stay in business disincentivizes innovation and efficiency, which harms productivity growth and makes us all poorer in the long run.
Do any of those businesses owe taxes before they've collected their first cent of revenue? That is the situation a software startup is now looking at.
Or, paraphrased: Look what you made me do.