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Accountancy Slice
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19th February 2026
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THE HOT STORY

Treasury tightens CAMT rules

The Treasury Department has issued interim guidance on the corporate alternative minimum tax (CAMT), which imposes a 15% tax on corporations earning over $1bn in adjusted financial statement income. Treasury Secretary Scott Bessent criticized the CAMT, calling it "a flawed, partisan experiment," while emphasizing the need for clarity to support job growth and investment. The new guidance modifies previous notices and provides adjustments for various tax-related issues, allowing companies to avoid the CAMT. The Treasury plans further changes to the CAMT rules, aiming to reduce administrative burdens and enhance predictability for businesses.

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TAX

New clean tax guidance sparks investor uncertainty

The Trump administration's recent interim guidance on clean energy tax credits has provided some clarity for the industry, outlining eligibility rules for projects based on materials sourced from China and other U.S. adversaries. However, it has left investors feeling uncertain, particularly regarding foreign ownership restrictions. Phil Shen, a clean energy analyst at Roth Capital Partners, expressed concerns, saying: "Our sense is that this guidance may not do enough to allay the concerns" of investors. Major banks like JP Morgan Chase & Co. and Morgan Stanley are hesitant to finance projects due to worries about foreign ownership scrutiny. While the guidance offers a pathway for renewable energy manufacturers, uncertainty remains until the Treasury Department issues further ownership rules later this year. Analysts noted that the guidance creates "achievable compliance pathways" for companies like Tesla and Enphase Energy.

Experts say U.S. tax laws favor wealth over work - with gendered consequences

Legal scholars argue that the U.S. tax code is far from neutral and often reinforces gender and economic inequality, particularly by undervaluing caregiving and privileging wealth over work. Bridget J. Crawford, a law professor at Pace University, says tax rules assume household income is shared equally and treat caregiving as a personal choice rather than essential labor. Policies such as the limited child and dependent care tax credit and joint filing rules can disproportionately disadvantage women, especially in dual-earner households where the second income is taxed at a higher marginal rate. Crawford and other academics have explored how a feminist lens - broadly defined as promoting dignity, autonomy and economic security for all - could reshape tax law. They argue that preferential treatment of capital gains over wages fuels wealth concentration and indirectly benefits men, who hold a larger share of capital. While mid-20th-century tax policy did more to curb extreme wealth, Crawford contends recent changes continue to favor the wealthy while offering limited relief to low- and middle-income families. A feminist tax code, she argues, would better support caregivers, reduce structural inequities and stop privileging accumulated wealth over earned income.

GOP lawmaker seeks to halt core provision of California wealth tax proposal

Rep. Kevin Kiley (R-Rocklin) is introducing the “Keep Jobs in California Act of 2026” to prevent states from retroactively taxing former residents' assets. The move comes as California progresses towards a wealth tax aimed at billionaires, which Kiley argues could drive job creators out of the state. He said: “California's proposed wealth tax is an unprecedented attempt to chase down people who have already left as a result of the state's poor policies.” The proposed Billionaire Tax Act would impose a one-time 5% tax on California's billionaires to fund healthcare for low-income residents. While supporters like Bernie Sanders advocate for the tax, Mr. Kiley warns it could destabilize the state's economy, emphasizing that the top 1% of earners contribute 50% of tax revenue.

Excise taxes: what accountants need to know

Implementing excise taxes requires adjustments to point-of-sale systems, invoicing, and record-keeping. Tax professionals play a crucial role in ensuring accurate tax calculations and compliance. As John Bonk, managing director of state and local tax at CBIZ, says: "Proper record-keeping is vital for excise tax compliance." Excise taxes target specific goods and services, often to raise revenue or discourage harmful behaviors. States like California and Colorado have introduced excise taxes on firearms to fund violence prevention programs. However, these taxes can be regressive, disproportionately impacting lower-income consumers. Effective administration and public support are essential for excise taxes to succeed, as seen with tobacco and alcohol taxes. Businesses must seek expert guidance to navigate the complexities of these taxes and ensure compliance.

FIRMS

Cherry Bekaert expands with RKE acquisition

Cherry Bekaert has acquired Richardson Kontogouris Emerson LLP (RKE), enhancing its presence on the West Coast. RKE, based in Torrance, California, has been providing accounting, tax, and advisory services since 2006, primarily to middle-market clients across various industries. Michelle Thompson, chief executive of Cherry Bekaert Advisory LLC, remarked: “This acquisition marks an exciting step in our Firm's growth strategy.” The integration aims to combine RKE's local relationships with Cherry Bekaert's national resources, offering clients an expanded suite of services. Christian Emerson, managing partner at RKE, expressed enthusiasm about the partnership, stating it opens new doors for clients while maintaining the quality service they expect.

Pearl Meyer names Jayson Traxler as new CEO

Executive compensation consultancy Pearl Meyer has appointed Jayson Traxler as chief executive officer, succeeding Beth Florin, who will retire in May 2026 after 25 years with the firm and remain on its board. Traxler joins from M&A advisory firm Stax, where he served as CEO until October 2025, and brings more than 25 years of experience in strategic finance and corporate development. His appointment follows Pearl Meyer’s acquisition by private equity firm Coalesce Capital in January 2025.

ECONOMY

Fed officials divided on rate path as inflation clouds outlook

Federal Reserve officials were split at their January meeting over the future direction of interest rates, with most agreeing to pause further cuts for now but differing on what should come next, according to newly released minutes. While several policymakers said additional rate cuts could be appropriate later this year if inflation continues to ease, others argued rates should remain steady until there is clearer evidence that inflation is firmly back on track toward the 2% target. A few officials even suggested that rate hikes could be considered if price pressures persist, calling for a more “two-sided” policy outlook. The Fed has already reduced rates by 0.75 percentage points since September, bringing the benchmark range to 3.5%-3.75%. Officials acknowledged that inflation is expected to decline this year but warned progress could be slower and uneven, with tariffs and other pressures posing risks. Markets are currently pricing in a possible rate cut in June, followed by another later in the year, as policymakers continue balancing inflation concerns with labor market conditions. 

U.S. single-family housing starts rebound, permits signal caution

U.S. single-family homebuilding rose in December, the Commerce Department reported on Wednesday, but a drop in permits pointed to continued strain in the housing sector amid high costs and mortgage rate pressures. Single-family housing starts increased 4.1% to a seasonally adjusted annual rate of 981,000 units in December, rebounding from 942,000 in November and 894,000 in October, according to the Commerce Department. However, permits for future single-family construction fell 1.7% to 881,000 units, suggesting weaker activity ahead. Builders continue to face higher material costs due to tariffs on imported goods, labor shortages linked to immigration crackdowns, and elevated land prices. A recent survey showed homebuilder sentiment declined further in February, reflecting affordability challenges as home prices remain high relative to incomes.

Industrial production posts strongest gain in nearly a year

U.S. industrial production rose 0.7% in January, marking its largest increase in nearly a year, driven by broad gains in manufacturing and higher utility output, according to Federal Reserve data. Manufacturing output, which accounts for about three-quarters of total production, climbed 0.6% - the strongest rise since February 2025. Gains were widespread, including increases in business equipment, consumer goods, machinery, motor vehicles, and computer and electronic products. Production of nondurable goods also advanced. Utility output jumped 2.1%, boosted in part by extreme winter weather across parts of the country, while mining and energy extraction declined. The data add to signs of a nascent recovery in manufacturing, supported by easing trade policy uncertainty, improved business equipment orders, and recent job gains in the sector. Capacity utilization at factories rose to 75.6%, the highest level since September, indicating stronger use of production capacity. 

Core capital goods orders topped forecasts in December

U.S. orders for core capital goods rose more than expected in December, signaling solid business investment momentum at the end of 2025 as trade policy uncertainty eased. Core capital goods orders - which exclude aircraft and military hardware and serve as a proxy for equipment investment - increased 0.6% in December, following a revised 0.8% gain in November, according to Commerce Department data. The rise exceeded economists’ expectations of a 0.3% increase. Overall durable goods orders fell 1.4%, largely due to a drop in aircraft bookings. However, orders excluding transportation equipment posted their strongest gain since September 2024. Core capital goods shipments, which feed directly into GDP calculations, rose 0.9% in December and increased at an annualized 8.2% rate in the fourth quarter. The gains were broad-based, including communications equipment, computers, machinery and motor vehicles, with AI-related investment seen as a key driver. Economists expect business investment to strengthen further this year, supported by tax incentives under President Trump’s recent legislation and continued spending on artificial intelligence. 

CORPORATE

Climate inaction could wipe out a third of fashion brands’ profits by 2030, report warns

Fashion brands risk losing up to 34% of profits by 2030 if chief financial officers fail to invest in supply chain decarbonization, according to a new report by the Apparel Impact Institute (Aii), produced with Accenture. The report, The Cost of Inaction, projects that rising carbon prices, energy costs and raw material volatility could significantly increase production expenses. Carbon pricing alone could push cost of goods sold up 13%, with carbon prices forecast to rise from an average of $10 per ton today to $350 by 2040. In high-risk scenarios, profit losses could reach 67%. Aii, which is seeking $250m to unlock $2bn in climate finance for supply chain decarbonization, has so far raised $100m. The report targets CFOs directly, arguing that climate investment is no longer a corporate social responsibility issue but a material financial risk. While most brands have been slow to fund emissions reductions for suppliers, companies such as H&M Group and German brand Armedangels say they are embedding climate mitigation into their financial strategies to protect long-term margins and secure competitive advantage. The report concludes that failure to act on climate risks could erode profitability across the industry, turning sustainability from a moral argument into a pressing financial imperative.

REGULATORY

Wall Street regulator seeks diminished exec pay disclosure

SEC chair Paul Atkins has said fewer senior corporate executives could be subject to extensive investor disclosures about their compensation under pending regulatory reforms. "I agree . . . that we should reconsider the number of executives for whom compensation information is provided," he said. Reuters notes that the remarks foreshadow proposals aimed at substantially reducing the burden companies face in complying with regulations for public companies, part of a general shift in the balance of power away from investors and back towards companies.

FRAUD

FBI launches hotline for victims of Jonathan Frost investment scheme

Jonathan Frost, a former accountant from Chattanooga, has pleaded guilty to three federal financial crimes related to a fraudulent hydrogen plant investment scheme. The scheme, which spanned from 2020 to September 2023, misappropriated investors' funds that were intended for a facility using solar power to extract hydrogen gas from water. Frost faces a potential sentence of up to 45 years in prison and is liable for at least $70m in restitution. His attorney, Lee Davis, said:  “The plea agreement reflects a resolution of the case without the need for trial.” Victims are encouraged to contact the FBI for updates on the case, as Frost remains out on a $10,000 bond pending sentencing on August 7.
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