Another issue is that software developers are sometimes paid highly and are in top tax bracket. In New Zealand the top marginal tax rate is 39% (although I am guessing most software devs would be on 33% (Over $70,000 and up to $180,000) even at 33% it is not so motivating to be offered $1000 if $330 of that immediately disappears as taxes. Plus the hassle of recording amounts and declaring them - uggggh.
In California that top marginal tax rate is 13.3% so not quite the same problem as some other countries.
In California that top marginal tax rate is 13.3% so not quite the same problem as some other countries.