> Just remove the rule altogether. A company paying a wage to a software engineer shouldn't be taxed any differently than any other kind of employee.
In most other industries, product development is capitalized and amortized over the life of the product for tax purposes. It requires lots of estimation and log-keeping (X% spent on develpoment, 100-X% spent on maintenance). Which is exactly what your employer is doing... taxing you just like every other kind of employee.
The change just removed the specific loophole for software.
spac
Except that for software this is so much more complex than for any other type of products.
In most other industries, product development is capitalized and amortized over the life of the product for tax purposes. It requires lots of estimation and log-keeping (X% spent on develpoment, 100-X% spent on maintenance). Which is exactly what your employer is doing... taxing you just like every other kind of employee.
The change just removed the specific loophole for software.