Tax Provision’s Role in Industry Layoffs
Not as well known, though, is a tax provision from 2017’s Tax Cuts and Jobs Act, which took effect in 2022. It rolls back corporation’s ability to immediately deduct all the costs of research and development, including engineer salaries.
Companies that weren’t profitable or didn’t have cash on hand suddenly had higher taxes, and were forced to reduce headcount.
There are plenty of other factors to consider as well, of course, from recently imposed tariffs to larger federal deficits triggering higher costs of borrowing. Ultimately, it’s a complex situation, even if it’s one that’s admittedly not exactly helped by corporate greed.
