There’s a Fascinating Hidden Reason That So Many High-Earning Tech Workers Are Getting Laid Off Now

An unknown change in the tax law during the first Donald Trump’s first presidency may be the motive behind all technical demobilization operations during the past few years.

like quartz Reports, changed the year 2017 to the 70-year-old tax law that rules the spending of business that did not come into effect until 2022-after three years, in the end, we can see how harmful this step is.

In 1954, the internal revenue department was awarded Article 174, a base that allows companies to discount 100 percent of spending on their research and development (R&D), including the salaries of persons participating in it. like quartz Notes, companies such as Microsoft and Apple have been built on a tax system that rewards research and development by allowing all these expenses to rely on being crossed-a system that was quietly dismantled at the beginning of its first work period in the White House.

Perhaps the tax cuts law for tax and jobs (TCJA) for the year 2017 was more famous in reducing corporate taxes from 35 percent to 21. To compensate for the missing money from these huge discounts and compliance with the Senate budget rules, Republicans in congress were one of this mixture quietly to the draft law that will not be kick at a later time.

Under TCJA, companies began in 2022 to force them to extinguish them, or spread them, search and development deductions over a period of five to 15 years instead of doing this at the same time. Technology companies that have been able to remove the salaries of their wholesale developers were suddenly forced to pay them. According to Layoffs.fyi, more than 500,000 technical workers have lost their jobs since 2023 – and changed this rule, quartz Notes, it is likely to be the biggest cause.

Although one believes that this change in the tax law will be good, this step has inspired a little more than the crochet sounds as artificial intelligence and excessive employment during the beginning of the Covid-19s.

A senior operating official said quartz. “It was just very silent.”

Earlier this year, a group of legislators from the two parties, for the second time, launched a draft law to reflect the TCJA firefighting base. The American Competitiveness, Research and Development Law, which was sponsored by approximately 70 members of Congress and supported by a wide range of technology industry that ranges from Bruce encryption to financial manager, to change the rule 174 before the end of the year in the hope of the damage to the addition of TCJA.

Regardless of the chances of the new draft law in traffic, it is too late for hundreds of thousands of technology workers who have lost their jobs due to the change of the base – or to retract the axis of artificial intelligence that may have inspired it.

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