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Republican presidential candidate Donald Trump is unveiling a range of tax proposals aimed at various American demographics, including tipped workers and senior citizens. His upcoming speech in Georgia will focus on using tax breaks to enhance U.S. manufacturing. Stephen Moore, a senior fellow at the Heritage Foundation, remarked: "I see it as a way of Trump trying to figure out how he can win over more working-class Americans." Mr. Trump's proposals, totaling $11tn, include extending the 2017 tax cuts and eliminating taxes on tips and Social Security. However, concerns about costs and fairness may hinder his plans, especially with the potential for opposition from both parties in Congress. Rep. Michael Lawler expressed hope for changes to the SALT deduction, stating, "It disproportionately hurts states like New York." Mr. Trump's ability to implement these proposals will depend on the political landscape following the elections.

 

Accounting Today

The IRS and the Treasury Department are developing proposed regulations for tax-free corporate spinoff transactions under Section 355. Mark Schneider, associate chief counsel (corporate) at the IRS, emphasized that these regulations are currently “front and center” during a virtual meeting of the American Bar Association's tax section. Although a timeline for the release of these regulations was not provided, Schneider stated, “we want to get something out.” Colin Campbell, associate tax legislative counsel at Treasury, confirmed that the proposed regulations have reached the draft stage.

 

Bloomberg Tax

New York City is considering significant changes to its property tax system, aiming for greater fairness and transparency. However, these reforms could disrupt the local economy and real estate market for years. The proposed changes, outlined in a 2020 advisory commission report and a shelved Assembly bill, would shift the tax burden to middle- and upper-income residents, potentially driving them out of the city. The reforms focus on valuing and taxing approximately 8.6 million residential properties to eliminate discriminatory impacts on low-income individuals and racial minorities. David C. Wilkes, a property tax and valuation strategy partner at Cullen and Dykman, notes that the current system disproportionately favors residential properties, with Class 1 properties making up 48% of total city real estate value but only contributing 15% of taxes paid. The proposed reforms could lead to significant tax increases for commercial property owners, raising concerns about their long-term viability in the city.

 

Bloomberg Tax

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In a piece for The CFO, Rachael Kennedy takes a deep dive into digital market expenditures, examining how finance chiefs can best make sense of marketing metrics and their broader impact on business financials. Digital marketing has seen a significant change, with cross-channel spend increasing by 50% year-over-year. This substantial rise indicates a shift in how businesses approach customer engagement and acquisition. The focus of this increased spending is on impressions-led channels – including social media platforms and video streaming services. The digital ad economy of 2024 requires a careful balance of increased investment and strategic allocation. Understanding these trends is crucial for aligning marketing expenditures with overall business objectives and financial goals.

 

The CFO

Atrium has released its 2025 Salary Guide, detailing projected pay ranges for seven public accounting roles. The guide is based on extensive data analysis, including historical data and insights from industry experts. Atrium stated, “After carefully categorizing and standardizing job roles for accurate comparisons, our in-house experts rigorously validate the data.” The guide highlights the most sought-after positions for 2025, including FP&A specialist, accounting manager, and senior financial analyst. It also allows users to calculate salary variances by region or city, providing a comprehensive resource for professionals in the finance and accounting sectors.

 

CPA Practice Advisor

Melio, a platform for accounts payable and receivable, has introduced new premium features aimed at enhancing cash flow management for small and medium-sized businesses (SMBs) and accountants. These upgrades allow users to automate processes, improve payment control, and facilitate faster domestic and international transactions. Melio chief executive Matan Bar stated: “This is Melio’s most extensive product upgrade since the company’s founding,” emphasizing the commitment to addressing customer needs. The new features include streamlined W-9 collection, automated 1099 generation for IRS compliance, and tiered subscription plans catering to various business types. Additionally, Melio now supports international payments in leading currencies, further aiding SMBs in global commerce.

 

CPA Practice Advisor

In September, U.S. consumer confidence unexpectedly declined, with the Conference Board reporting a drop in its index to 98.7 from 105.6 in August, marking the largest fall since August 2021. Dana Peterson, chief economist at the Conference Board, said: “The deterioration across the index's main components likely reflected consumers' concerns about the labor market”. The percentage of consumers viewing jobs as “plentiful” fell to 30.9%, while those perceiving jobs as “hard to get” rose to 18.3%. The decline comes despite a healthy labor market characterized by low unemployment and elevated wages. Additionally, the Federal Reserve recently cut interest rates by 50 basis points, aiming to maintain low unemployment levels.

 

Reuters

CNN

CNBC

Home prices in the 20 biggest U.S. metro areas set yet another record high in July, but the pace of price rises has decelerated significantly as prices and mortgage rates weigh on home buyers. The S&P CoreLogic Case-Shiller 20-city house-price index rose 0.3% in July compared to the previous month, and by 5% on an annual basis. The biggest gain was seen in New York, where prices were 8.8% higher, while the smallest was in Portland, at 0.8%. A separate report from the Federal Housing Finance Agency also showed home prices were up by 0.1% in July when compared to the previous month, and were up 4.5% in the past year. The median price of a resale home was $421,400 in July, and a newly built home was $436,700.

 

Market Watch

The U.S. Justice Department has filed a lawsuit against Visa, accusing the company of illegally monopolizing the debit card market. The complaint, lodged in Manhattan federal court, claims that Visa, which processes over 60% of U.S. debit transactions, imposed restrictive agreements on merchants to deter them from using alternative payment networks. The Justice Department alleges that Visa's practices, which began in 2012, included a pricing structure that forced merchants to route most transactions through Visa or face hefty penalties. "Visa began to require merchants to enter into agreements with onerous terms," the complaint states. The lawsuit is part of a broader investigation into Visa's business practices following its failed acquisition of Plaid in 2021.

 

CNN

Financial Times

Los Angeles Times

Washington Post

Caroline Ellison, a key witness in the conviction of FTX co-founder Sam Bankman-Fried, was sentenced to two years in prison on Tuesday for her role in one of the largest financial frauds in history. She was the chief executive of Alameda Research, a hedge fund controlled by Mr. Bankman-Fried that used FTX customer funds to make billions of dollars in risky investments. She pleaded guilty to fraud and money laundering charges, cooperating with prosecutors and acting as a key witness during the trial last year of Mr. Bankman-Fried, her former boyfriend. Two former FTX executives who also pleaded guilty in the case - former director of engineering Nishad Singh and co-founder Gary Wang - are set to be sentenced in October and November, respectively.

 

ABC News

Bloomberg

Financial Times

Massachusetts-based accounting firm Katz Nannis & Solomon (KNS) is facing three proposed federal class action lawsuits following a data breach that exposed the personal information of thousands. Plaintiffs Bertha Godbee, Phenicia Brown, and Delores J. Williams claim that the firm failed to uphold its responsibilities under common law, contract law, industry standards, and the Federal Trade Commission Act by not implementing adequate data protection measures. Additionally, they allege that KNS delayed notifying affected individuals for over nine months after discovering the breach.

 

Bloomberg Tax

The integration of artificial intelligence (AI) in accounting is gaining traction, with many professionals recognizing its potential benefits despite lingering concerns. A survey by Accounting Today revealed that 85% of respondents worry about AI's tendency to produce inaccurate information, known as hallucinations. Adolfo Marquez, marketing manager for MBS Accounting, emphasized the importance of maintaining client relationships, stating: "Will this preserve or impede our relationship with our clients?" As firms like GWCPA and RSM US adopt AI for various processes, the industry anticipates that 80% of vendors will incorporate generative AI into their applications by 2026. Amanda Wilkie from Boomer Consulting Inc. advises establishing an AI working group and developing an AI usage policy to mitigate risks. "By developing an AI usage policy, exploring AI tools in your firm and educating your team members on how to use AI responsibly, you can harness the power of AI while minimizing risks," she noted.

 

Accounting Today