Interesting People mailing list archives
more on open source tax credit
From: David Farber <dave () farber net>
Date: Sat, 18 Mar 2006 15:22:45 -0500
Begin forwarded message: From: Dana Blankenhorn <dana () a-clue com> Date: March 18, 2006 3:13:22 PM EST To: dave () farber net Subject: Re: [IP] open source tax credit http://blogs.zdnet.com/open-source/?p=597 An open source tax credit? Posted by Dana Blankenhorn @ 10:25 am Digg This!John Irons and Carl Malamud (right), both fellows at the liberal Center for American Progress think tank, have developed a proposal they call the Open Source Tax Credit.
The idea is that corporations can write-off their work developing software in many ways, but individuals can't. And they should.
While I hate to look a gift horse in the mouth, I think this thing is mis-named. Corporations developing open source tools can already get the write-offs. The problem Irons and Malamud are addressing is that individuals can't write-off their research time, regardless of whether they are writing open source or proprietary code.
Where open source may come into play is where you decide to create a company to gain those write-offs from your work in open source. You can't claim to run a company if all it does is lose money.
But is that really a problem? Doesn't the open source business model work for everyone? After all, if you get some consulting income or freelance work because of your open source development efforts, having a corporation would let you shield that money from taxes, making your time a cost of doing business.
Corporations are cheap to create. There are folks in Nevada who create them for a living, and you need not move there to get the benefits. (No state taxes, either.)
So is this a solution in search of a problem? Or does this idea make sense to you?
On 3/17/2006 7:37:02 PM, David Farber (dave () farber net) wrote: > Begin forwarded message: > > From: Carl Malamud <carl () media org> > Date: March 17, 2006 11:37:38 AM EST > To: dave () farber net > Subject: open source tax credit > > Hi Dave - > > Perhaps of interest for IP. A proposal for an "Open Source Tax > Credit." > > Blog posting is here: > > http://thinkprogress.org/2006/03/17/open-source-tax-credit/ > > Full economic analysis of the proposal is here: > > http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=1468377 > > Regards, > > Carl > > > ------------------------------------- > You are subscribed as dana () a-clue com > To manage your subscription, go to > http://v2.listbox.com/member/?listname=ip >> Archives at: http://www.interesting-people.org/archives/ interesting-people/
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- more on open source tax credit David Farber (Mar 18)