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Senate Finance Committee Chair Mike Crapo (R-ID) has published the Senate's version of President Donald Trump's signature tax and spending package, offering more permanent business tax breaks, deeper cuts to Medicaid, slower phaseouts for clean-energy tax credits and a much lower cap of $10,000 on the state and local tax (SALT) deduction. “This bill prevents an over-$4tn tax hike and makes the successful 2017 Trump tax cuts permanent, enabling families and businesses to save and plan for the future,” Mr. Crapo said. The Senate version's changes include a diluted, delayed version of the House bill's Section 899 "revenge" tax, a levy that would increase tax rates for individuals and companies from countries whose tax policies the government deems “discriminatory.” It would increase the maximum per-child Child Tax Credit from $2,000 to $2,200, making it permanent and adjusting it for inflation in later years. It also caps the amount of tipped wages that can be exempt from taxation at $25,000 per individual, and overtime at $12,500 per individual and $25,000 per couple. The maximum $4,000 bonus standard deduction for seniors is increased to $6,000, to better offset all Social Security taxes paid. The Senate bill makes more aggressive cuts to the Medicaid program for low-income and disabled people than the House version, and requires parents with children 15 and older to work or do community service for 80 hours per month to qualify for health insurance through Medicaid. The bill’s release kick-starts a period of intense negotiations in the Senate, where Republicans have a 53-47 majority. “I don’t know if anybody’s comfortable with anything totally right now,” said Sen. Markwayne Mullin (R-OK). “Everything’s on the table; everything’s being discussed.”  

 

CNN

The Hill

Bloomberg

Wall Street Journal

Filippo Gori, head of JPMorgan's European operations, is relocating to New York after less than a year in London. A source said that Mr. Gori will spend "at least half of his time" in the Europe, Middle East, and Africa region and would "continue to be highly visible among employees and clients in the region."

 

Financial Times

The Daily Telegraph

Meta announced on Monday that it is bringing ads to WhatsApp for the first time. The promotions will appear only in an area of the app called Updates, which is used by around 1.5bn people a day. Additionally, Meta will begin monetizing WhatsApp’s Channels feature through search ads and subscriptions. The company added that it had no plans to place ads in chats and personal messages. "People really want to chat to businesses on their own terms, and they want to do it in a place where they already spend their time, which is on WhatsApp," explained Nikila Srinivasan, vice president for product management at Meta. She also said: “Thinking through the lens of privacy was incredibly important for how we thought about bringing these features to market. Your personal messages, calls and statuses, they will remain end-to-end encrypted".

 

USA Today

Financial Times

NBC News

New York Times

Warner Bros. Discovery chief executive David Zaslav is to see his target annual compensation reduced, following the split of the conglomerate into two companies: WBD Streaming & Studios, to be led by Mr. Zaslav, and WBD Global Networks, which will be headed by chief financial officer Gunnar Wiedenfels. An SEC filing on Monday said that his total pay mix will be reoriented toward long-term incentives after the split, which is due to complete during 2026. The WBD board’s compensation committee said it believes the new structure “will foster a stronger alignment with stockholders and incentivize sustained, long-term value creation.”

 

Variety

Financial Times

The New York Federal Reserve's Empire State Manufacturing Index, a key measure of business conditions in New York state, showed a fourth consecutive monthly contraction in activity. The diffusion index for General Business Conditions fell 6.8 points to -16.0, below a forecast of -5.9. The reading is compiled from a survey of about 200 manufacturers in New York state. The new orders index fell to -14.2, the shipments index moved down to around zero, pointing to a decline in both orders and shipments, and the supply availability index remained below zero at -8.3.

 

Advisor Perspectives

Investing

G7 leaders have provisionally agreed on a strategy to safeguard the supply of critical minerals, aiming to enhance their economies and address disruptions caused by China's export restrictions. The draft statement emphasizes the need for mineral markets to reflect the true costs of responsible extraction and processing, while also recognizing the threats posed by non-market practices in the sector. To bolster resilience, the G7 plans to coordinate responses to market disruptions and diversify their supply chains through mining, processing, and recycling efforts.

 

Reuters

The Supreme Court has ruled 8-1 in favor of the IRS commissioner, and against a taxpayer, in a case that may limit how much the U.S. Tax Court can help taxpayers. The court issued the ruling in Commissioner of Internal Revenue v. Jennifer Zuch, a case involving a dispute over the personal income taxes that Jennifer Zuch owed in 2010. In 2012, Jennifer Zuch and her then-husband Patrick Gennardo filed their 2010 income tax returns using the married filing separately status. To satisfy the balance due on Mr. Gennardo’s return, the IRS applied $50,000 in estimated tax payments the couple had previously submitted. A few weeks later, Ms. Zuch filed an amended return for 2010 reporting an additional source of income, which caused a tax liability of nearly $28,000. Ms. Zuch claimed that the $50,000 in estimated tax payments should have been applied to her account. However, because the IRS had already applied the money to Mr. Gennardo’s account, it denied Ms. Zuch’s request and informed her that it intended to file a levy on her property to satisfy her tax debt. She appealed the Tax Court’s decision to the Third Circuit, which reversed, holding that the Tax Court had jurisdiction to review the application of Ms. Zuch’s subsequent overpayments to her 2010 tax liability. The Supreme Court majority overturned a 3rd U.S. Circuit Court of Appeals ruling in Ms. Zuch's favor. The court majority agreed with the IRS that Ms. Zuch's original petition was moot and that she would have to file any challenge to IRS actions in a U.S. district court. 

 

The Tax Adviser

Think Advisor

McDonald's has settled a $10bn lawsuit by media entrepreneur Byron Allen that accused the chain of "racial stereotyping" by excluding Black-owned media from much of its advertising budget. Settlement terms are confidential. Mr. Allen accused McDonald's of falsely labeling his Entertainment Studios group as a media company that produces content solely for Black viewers, consigning it to its "de minimis" ad budget for those viewers instead of its general ad budget. McDonald's, based in Chicago, denied wrongdoing in agreeing to settle. McDonald's said it will buy ads "at market value" from Allen's companies "in a manner that aligns with its advertising strategy and commercial objectives."

 

Reuters

The U.S. Justice Department is reviewing Google's proposed $32bn acquisition of cybersecurity firm Wiz to determine if it would unfairly limit competition in the market. The deal, which would be Google's largest acquisition to date, aims to enhance its cloud services by integrating Wiz's cybersecurity solutions. The scrutiny comes amid ongoing antitrust challenges facing Google, including lawsuits related to its dominance in online search and advertising technologies.

 

Bloomberg

Reuters

Eli Lilly is to acquire gene-editing startup Verve Therapeutics for up to $1.3bn, to boost its pipeline of experimental medicines beyond its weight-loss and diabetes drugs. The deal includes an upfront payment of almost $1bn and a further $300m based on the genetic-medicines firm achieving certain clinical milestones.

 

Financial Times

Reuters

AICPA's Assurance Services Executive Committee (ASEC) has released an exposure draft outlining a framework for controls aimed at supporting stablecoin issuers. The draft, titled Proposed Criteria for Controls Supporting Token Operations: Specific to Asset-Backed Fiat-Pegged Tokens, invites comments by August 11th, directed to Di Krupica, CPA, senior manager for Digital Assets at Institute. The framework was developed to address the need for criteria that ensure controls are effectively designed and operational over time. The proposed criteria cover various control areas, including token management, client onboarding, transaction processing, and vendor management. The proposed criteria are designed to be used in connection with 2025 Criteria for Stablecoin Reporting.

 

Journal of Accountancy

Juneteenth celebrations face significant cutbacks this year due to funding shortfalls as companies and municipalities reassess their support for diversity, equity, and inclusion initiatives. Some organizations can no longer afford to support Juneteenth celebrations because they just don't have the money amid the current economic uncertainty, said Sonya Grier, a marketing professor at American University. “It's a whole confluence of issues,” Grier said.

 

U.S. News

The 113th International Labour Conference (ILC) concluded on 13 June with the adoption of the first-ever international labour standards aimed at preventing exposure to, and protecting workers from, biological hazards in the workplace, a landmark step in global efforts to safeguard occupational health and safety across all sectors. The Convention (C 192) calls on Member States to formulate national policies and adopt measures on occupational safety and health that include the prevention and protection against biological hazards, and the development of preparedness and response measures to deal with accidents and emergencies. It requires employers to adopt preventive and protective measures, in collaboration with workers, who must also be informed and trained on the hazards and risks.

 

The Times of India

Barron's

International Labour Organization