I just saw a news article about changes to Section 174 of the tax code. It was passed in 2017 but didn't go into effect until 2022. It greatly reduces the tax deduction for R&D, and at least according to the article, is the real cause of the big tech layoffs the last few years.
The article I saw is: https://qz.com/tech-layoffs-tax-code-trump-section-174-microsoft-meta-1851783502
Most are being driven by Dee!
“And so, on schedule in 2022, the change to Section 174 went into effect. Companies filed their 2022 tax returns under the new rules in early 2023. And suddenly, R&D wasn’t a full, immediate write-off anymore. The tax benefits of salaries for engineers, product and project managers, data scientists, and even some user experience and marketing staff — all of which had previously reduced taxable income in year one — now had to be spread out over five- or 15-year periods.”
i would say yes plus the fact that 1 engineer’s salary in the US can get them 3 programmers offshore and they don’t have to pay unemployment benefits nor contribute on 401K. as to the quality of offshore work? that remains to be seen ( i’m seeing data breech in the horizon)