The bipartisan Tax Deal that
@repjasonsmith
and
@ronwyden
struck would help thousands of small businesses that are struggling because of R&D amortization.
I've talked to hundreds of my fellow small business owners about this over the past year. Most of them have software
@jbarro
This is also why chairs and couches used to be lined with brass tacks. Part style but mostly practical because the brass would catch the light (same with doorknobs).
As my college decorative arts professor used to say, brass tacks on chairs were a “landing strip”
@jdesmondharris
@eads
It took me several months of working from home wrapped in a blanket before it truly sunk in that I was working from *home* and didn’t have to be cold. Freezing while working had become a natural state
@jessejanderson
Fun fact: if your mouth or face feels itchy after eating fresh mango, it's because the oil in the skin of the mango is in the same family as poison ivy
@jbarro
Fun fact: putting furniture against the wall is a holdover from pre-electricity days. It was against the wall when not in use because otherwise you’d bump into it when walking around with a candle at night.
There's a big tax deal being negotiated in the Senate, and if you are employed by/own a company that makes software or any kind of technology, you need to know about it.
Since taxes are boring, this will be explained entirely in Monty Python gifs.
@DJLiquidBeats
@ASlavitt
I agree with you but need to add: all of our healthcare workers die because of the crush of people in hospitals, it won’t matter how many ventilators we have. They are dying at alarming rates. Everyone needs to be self-isolating and doing so yesterday
@wise_wabbit
@docherty66
@LFiniOH
@jbarro
Relatedly, chairman of the board is called such because only the most important person would have a chair. Everyone else would sit on benches.
In Northern Germanic languages (Swedish, Danish, Norwegian), a table is still called a “bord”
🚨 OWN A COMPANY? SIGN THIS LETTER 🚨
The Senate needs a loud and clear reminder that small software/technology companies urgently need to be able to fully deduct all of our software development and R&D salaries and expenses, and that this must be fixed before 2023 tax filings.
Geocodio made $31 in its first month.
Took us 5 years to get to $1,000,000 all-time revenue.
Now we do north of that in a single year, and still growing.
@sagiterrier
@nikkimcentee17
I saw MGMT live in ‘05, opening for Of Montreal. Super catchy & they let me buy their EP for $5 as long as I promised to mail them the other $2. Nice guys.
A guy standing near me ranted about how they were “self-absorbed” for playing the music from an iPod. 😂
@wise_wabbit
@docherty66
@LFiniOH
@jbarro
uhhh here’s another one since you guys love this stuff (my people!!):
Medieval manor houses had intentionally heavy furniture so thieves/invaders couldn’t steal it while the lords were out visiting their lands and other lords
Russia has 2000t of gold. There is just absolutely no way Russia could sell more than 5-10% of its gold reserves within like a month. If Russia was starting to sell, prices would plummet, as there is simply very little market depth(important!) in the gold market. (5/18)
PSA to people over ~50:
To people under 50, a phone call means something is very, very wrong.
In a time of crisis, calling someone without previously arranging it makes people think there is someone sick, in the hospital, or worse.
There is an immediate feeling of dread
Let’s build a list of Ukrainian indie hacker businesses. Reply here if you know of any.
Filling up their bank accounts while they’re fleeing seems like the least we can do
@Queen_Ratchet_2
@CheesyBread9
@Diamond_Jax
@DenaeEdgeEdge
My daughter didn’t have much hair as a baby.
One day when we were out for a walk, a man from my building I’d never talked to asked me what she was.
I told him, and he gave me a lecture on how I should really put a bow on her head so people know she’s a girl.
If you're watching the videos of Laura and are reminded of how Twitter was filled with rescue requests during Harvey, you should know about CrowdSource Rescue, a volunteer group that came out of that tragedy.
If you come across requests for help, submit them here 👇
We are now accepting rescue requests on .
If you need to be rescued, call 911 first, then make a request on that link.
We will get overwhelmed on tags - please use this link to request assistance.
#Laura
#HurricaneLaura
PS: If you haven’t noticed, my account is now dedicated to saving thousands of small businesses and the American software industry in general by doing everything possible to fix R&D amortization and get this Tax Deal passed.
I make no apologies.
Salaries should be expensable in the year they’re paid. This seems obvious, and yet, that hasn’t been the case since 2021 in the US for developers, designers, PMs, engineers, or anyone else who works on software, in addition to work classified as R&D.
@RepJasonSmith
@RonWyden
Florida: "I'm a veteran and we make software for the Department of Defense and the VA. We are considering a hiring freeze, a layoff, and even closing our doors if the law doesn’t change. My tax bills for 2022 and 2023 are higher than profits -- an effective tax rate of more than
@conormuirhead
Thank you for sticking your neck out and providing context from the inside, Conor. You're taking a risk by posting this, and it is noticed and appreciated.
It needs to be shouted from the rooftops that fixing R&D amortization is not about companies getting a special tax break.
IT IS ABOUT COMPANIES BEING ABLE TO FULLY DEDUCT PAYROLL ON THEIR TAXES.
Nothing special. We just want a return to 2021 tax rules
@Maloney_EA
“So what do you do?”
Me: I’m co-founder of of a software as a service company. I’m also a mom—
“Wait, so where is your child right now?”
Me: ...At school!?
The other frequent response:
“Oh, but who actually started the company?”
I love when people first hear about the Section 174 R&D amortization issues. "Wait, that's insane, that can't be right that software developer salaries are no longer 100% business deductions? What?!?"
Yes, it is insane! Welcome onboard! 👊
Thanks to Atomic Habits I’m now meditating, journaling, and using my phone way less.
New habit I started cultivating this week: cardio every day.
I’ve chosen to do 5 back tucks on trampoline every day because they bring me joy… even when it’s freezing like today!
Just got off the phone with my Rep’s office and asked that the Congressman support HR 7024, aka the Tax Deal that includes a fix for US software expensing — and it’s time for you to do the same!
This bill needs all the momentum it can get before the expected House vote next week
The bipartisan Tax Deal that
@repjasonsmith
and
@ronwyden
struck would help thousands of small businesses that are struggling because of R&D amortization.
I've talked to hundreds of my fellow small business owners about this over the past year. Most of them have software
Sign the letter here. If you have a US small business, and think software developer / R&D expenses should be expensable, sign.
Deadline is Monday at midnight Pacific so get signing and sharing! Just like last April, we need all 50 states
A “real business” is a business that has customers. That’s it.
Don’t let anyone tell you that you need to have a certain revenue level, employees, funding, a physical location, or anything else to be a real business.
This morning, 1,171 small businesses from all 50 states sent a letter to Senate Leadership to encourage them to pass the Tax Deal before the business tax filing deadline on March 15th.
Software development and R&D payroll and expenses must be fully tax-deductible. Period.
Payroll should be a tax deduction again, period. Employee salaries shouldn't be added back in as "profits."
Yet, that's happening right now for developers, designers, PMs & more
As a result, people are getting laid off, & small business owners are being bled of every last cent
I wish it were an April Fools' joke, but today I will be sending the IRS all of my savings outside of my retirement account. Small business owners are being crushed by enormous tax bills because we can't deduct payroll.
@SenateGOP
, you have a chance to fix this by passing HR7024.
This week is make it or break it to save hundreds of thousands of software dev, designer, engineer, & PM jobs
(whose jobs are at risk bc Congress inadvertently made it stratospherically more expensive to employ you -- see below.)
If you have GOP Senators, call/email them today
There's a big tax deal being negotiated in the Senate, and if you are employed by/own a company that makes software or any kind of technology, you need to know about it.
Since taxes are boring, this will be explained entirely in Monty Python gifs.
20 years ago, I was diagnosed with ADHD.
1 month ago, I started medication for the first time.
I was long afraid of meds, and wish I hadn’t been.
My brain is quiet. It’s like it works with me, rather than against me.
I’ve gone from having an ADHD brain to a brain in HD.
@RepJasonSmith
@RonWyden
Massachusetts: "I run a small software company. We, and our accountant, didn't know about the law change, so we made normal estimated tax payments in 2022. We ended up paying $20k in penalties and interest when we finally paid our extension bill in October."
@JamesClear
Nahhh we’re goats 🐐
- very intelligent and curious (💅)
- prefer to be independent rather than in a herd
- communicate with one another by tweeting I mean bleating
- capable of scaling mountains that leave others wondering how tf we did that
- underestimated by bigger animals
🚨 If you work in tech - as a founder or employee - you need to call your rep in Congress today and tell them to support HR 7024 🚨
Thousands of companies & hundreds of thousands of jobs are at risk due to a tax rule change.
But we’re close to fixing it. Here’s how ⬇️
The bipartisan Tax Deal that
@repjasonsmith
and
@ronwyden
struck would help thousands of small businesses that are struggling because of R&D amortization.
I've talked to hundreds of my fellow small business owners about this over the past year. Most of them have software
There once was a SaaS with cash to burn
Acquisition started good—but things took a frightful turn
Cried the PM, “Our bucket is leaky!”
“The value prop is murky and our UI is creaky!”
And they lost all their customers to churn
There’s a lot of concern over the Section 174 tax changes in the US.
In short, it means that software development and other R&D activities cannot be immediately written off as expenses, but rather amortized (spread out).
This thread tries to answer some of those questions.
What other books would you recommend to someone who is bootstrapping-curious?
(Audience: people with business skills who've never heard of bootstrapping before.)
Background: the 2017 tax cuts were "paid for" by changing rules about how businesses could claim deductions for expenses and salaries.
Instead of being able to deduct 100% of those costs as expenses because they're, well, expenses, starting in 2022, any work related to software
When you call your Senators about Section 174, make sure to remind them that companies in China get a 2X deduction on R&D costs — meanwhile, American companies can only deduct 10-20%.
Competition from China may not be something that you think about much—but Senators do.
If you think all of this is insane, and that business expenses should be, um, expenses for tax purposes, welcome to the party.
Please join us in fixing this.
How a bill becomes a law for developers:
House = Development
Senate = Staging
President’s Desk = Production
We are currently in between dev and staging, hoping to god the team that runs staging doesn’t f%$k it up and introduce merge conflicts.
@RepJasonSmith
@RonWyden
Indiana: "Our tax bill was nearly 500% of our net profit, and we totally changed the business in 2023 to avoid a second unpayable tax bill while we wait for this to get repealed. As things look now, we’re looking into other alternatives, like moving our company abroad."
@RepJasonSmith
@RonWyden
Pennsylvania: "Our taxes increased 5x (500%). It's so bad that if it's not repealed, we'll find a way to move our company to Canada where my co-founder is located. We're a high growth technology / software company so it seems this law is doing the exact opposite of its intent:
Taxes aren't the most exciting topic, but there's a tax change in the US that came into effect for 2022 that you need to be aware of.
It could drastically increase your tax bill for this year, even if you aren't profitable.
So as you can imagine, not letting companies deduct 90% of their costs and acting as if the rest is profit when it's been spent is catastrophic for small businesses, which run on narrow margins and don't have huge cash balances.
Small software/tech companies are hardest hit.
@RepJasonSmith
@RonWyden
North Carolina: "We received $600k in phase 1 SBIR grants from the NIH to create a non-drug therapy for [a disease]. We are looking at a tax burden of up to $130k for 2023 which we have no path to pay for [and SBIR grants may not be used to pay for taxes]. Our phase 1 study
If you own a small business and you have Republican Senators, make sure you call them today. Tell them you're a small business owner and want them to support the House version of the Tax Deal - HR 7024.
@mjmichellekim
Thank you for this thread.
For the other white parents reading this who may be wondering how to raise our kids to not perpetuate this, in addition to modeling respect, “The Name Jar” is worth adding to your list to build empathy in kids
We are now at the moment when we need EVERYONE in tech — founders, employees, family members, friends — calling Congress in support of the Tax Deal that fixes software/R&D expensing, aka HR 7024
Find your Rep's phone number (links below), call their office, and say:
Brick and mortar businesses tape their first dollar on the wall as a sign of pride and how far they’ve come.
Don’t we need something like that to celebrate internet businesses, too?
See the wall of first payouts here and add your own:
🏛️ Section 174 update: It's time to call your Senators!
It takes 2 minutes, and every call is counted:
"Hi, I live in [state], and I'd like the Senator to support HR 7024, the Smith-Wyden Tax Deal."
That's it!
Number of guys who have pitched themselves to be on Software Social: 50+
Number of women who have pitched themselves: 1
Number of men I've invited on who accepted immediately: all of them
Number of women I've invited on who I had to convince to come on: most of them
We - 800+ small software & tech companies - worked to get Congress' attention about this last year, as they basically didn't realize small businesses were being hit by this and that it was leading to layoffs and people taking out personal loans to cover biz taxes.