
2025-06-07 22:50:05
It is not AI that is driving tech layoffs. It’s the massive change in R&D writeoff rules that kicked in for TY2022, from the 2017 Trump tax bill.
The ability to “expense” R&D costs was in place for decades and arguably drove US innovation by making it cheap. Now R&D is amortized over 5 years for US work, 15 years for non-US work. The current reconciliation bill would bring back expensing of domestic R&D costs.