It was a baseline assumption — innovation and risk-taking subsidized by the tax code — that shaped how founders operated and how investors made decisions. In turn, tech companies largely built their products in the U.S.AdvertisementMicrosoft’s operating systems were coded in Washington state. To understand the impact, imagine a personal tax code change that allowed you to deduct 100% of your biggest source of expenses, and that becoming a 20% deduction. AdvertisementThe layoffs beginIt’s no coincidence that Meta announced its “Year of Efficiency” immediately after the Section 174 change took effect. From 1954 until 2022, the U.S. tax code had encouraged businesses of all stripes to behave like tech companies.