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Considering they are probably the largest component of R&D expenses... yes, _if_ you think R&D should be tax-subsidized in some way.



I don't understand how that is a subsidy, are the people paying the employer?

The employer makes less profit due to salaries, but they won't "lose less" or make more money due to salaries.

Under that argument, the government would have a direct incentive to dictate how businesses do business to maximize taxable revenue.


Tax subsidies are when the government taxes you less, thereby reducing your tax burden. You don't receive funds, you just owe less.




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