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USA
12th June 2026
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THE HOT STORY

IRS Data Book highlights strong collections, refunds, and enforcement activity

The IRS has released its 2025 Data Book, highlighting a year of strong tax collections, taxpayer assistance, and enforcement activity. The agency collected $2.9tn in individual income tax withholding and payments, $486.4bn in business income taxes, and issued 116.9m refunds totaling $516.4bn. The report noted that about 45% of individual tax returns filed during the 2026 filing season claimed at least one deduction introduced under the Working Families Tax Cuts Act, including deductions for tips, overtime pay, car loan interest, and seniors, with average refunds on those returns exceeding $3,200. The IRS completed nearly 498,000 audits that resulted in $26.8bn in recommended additional taxes, conducted 2,850 criminal investigations, and collected $73.1bn in unpaid tax assessments. The agency also assisted more than 50m taxpayers, processed over 224m electronic filings, and operated with a budget of $19bn and a workforce of more than 95,000 full-time equivalent positions.

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TAX

IRS launches hiring drive in six cities following workforce reductions

The IRS is holding in-person hiring events across six U.S. cities to recruit seasonal clerks, customer service representatives, and tax examiners, despite having reduced its workforce by more than 27% over the past year. The recruitment sessions, taking place through mid-July in locations including Kansas City, Jacksonville, Covington, Ogden, and Austin, are intended to strengthen taxpayer services and improve response times. The hiring push comes after IRS staffing fell from more than 102,000 employees in January 2025 to approximately 74,000 by December, according to the National Taxpayer Advocate. IRS chief executive Frank Bisignano said the initiative is aimed at rebuilding key operational capabilities, while AICPA chair Jan Lewis welcomed the move, expressing hope that additional customer service staff will help address longstanding challenges tax professionals face when contacting the agency.

Arizona budget deal includes federal tax conformity

Arizona lawmakers have advanced an $18.3bn bipartisan budget agreement that fully aligns the state with President Donald Trump’s federal tax cuts while imposing a three-year moratorium on tax incentives for new data centers, a compromise expected to win Governor Katie Hobbs’ approval. The package includes more than $1.4bn in tax reductions over four years, including the elimination of taxes on tips and overtime, a larger standard deduction, and a new $6,000 tax deduction for seniors. Democrats secured the suspension of data center tax subsidies, which is expected to save approximately $38m annually, with funds directed toward food assistance and public education programs

Green Bay adds voucher funding disclosure to property tax statements

The City of Green Bay has begun including information on property tax bills showing how much local school tax revenue is used to fund private school voucher programs, a move supporters say improves transparency but critics argue politicizes tax documents and presents an incomplete picture of school funding. The change, approved by the City Council in 2025, added a note stating that nearly $10m of the city’s school tax levy was allocated to private school vouchers, part of a broader $14.1m voucher levy for the Green Bay Area Public School District.  School choice advocates contend the disclosure is misleading because it excludes the financial impact of open enrollment programs, which cost the district a net $15.7m in 2024-25, although districts are permitted to raise taxes to offset voucher costs in ways they cannot for open enrollment.

ECONOMY

Jobless claims edge higher as labor market remains resilient

Initial claims for U.S. unemployment benefits increased modestly by 4,000 to 229,000 in the seven days to June 6th, signaling continued labor market resilience despite signs of softer hiring activity. The latest figure from the Labor Department exceeded economists’ expectations of 219,000 claims, although seasonal factors related to school summer breaks may have contributed to the increase. The report follows three consecutive months of solid job growth and an unemployment rate that has held steady at 4.3%. However, signs of labor market cooling remain evident, with the four-week moving average of claims up 4,350 to 219,000, and continuing unemployment claims rising 24,000 to 1.795m, while the number of people unemployed for 27 weeks or longer reached its highest level since December 2021.

Producer prices post largest increase since 2022 on energy price surge

U.S. wholesale inflation accelerated sharply in May, with the Labor Department's Producer Price Index (PPI) rising 6.5% year-over-year, its largest increase since November 2022, driven primarily by a surge in energy costs following disruptions linked to the Iran war. Producer prices increased 1.1% month-over-month for a second consecutive month, while wholesale gasoline prices jumped more than 23% from April and nearly 70% from a year earlier. Excluding food and energy, core producer prices rose 4.9% annually. The report follows data showing consumer inflation reached 4.2% in May, reinforcing concerns that elevated energy costs are feeding through the economy. “The bottom line is that U.S. inventory levels remain above estimated minimum operating thresholds,’’ commented S&P Global Energy’s Aaron Brady. “However, with continued disruption to Middle East flows, draws are likely to extend into the third quarter, even in the event of a near-term diplomatic resolution.’’ 

LEGAL

Appeals court rules Trump’s 10% global tariff can stay, for now

A U.S. appeals court has extended its block on ​a lower court ruling against the Trump ‌administration's 10% global tariff under Section 122 of the Trade Act. President Trump imposed the new levy after the Supreme Court invalidated his previous emergency tariffs as exceeding his authority. The decision from the ⁠Federal Circuit appeals court allows the U.S. ​to continue collecting tariffs from three importers - two small businesses and the state of ‌Washington, ⁠which paid tariffs on purchases by the University of Washington - while ​the government's appeal plays out. “We conclude that the federal government has made a sufficient showing that it is likely to succeed on the merits,” the court wrote.

DOJ subpoenas major banks over alleged 'debanking'

The U.S. Justice Department has issued subpoenas to major banks, including JPMorgan Chase ​and Bank of America, seeking information on whether ‌they improperly closed customer accounts for political reasons, according to a source familiar with the matter. The Wall Street Journal reports that the subpoenas, some dating back ​to last year, were from the U.S. Attorney's ​Office in Washington, D.C., headed by Jeanine Pirro, and escalate a campaign by President Trump to obtain evidence that lenders allegedly discriminated against conservatives, including his own family.

REGULATORY

SEC proposes to scrap 'order protection rule'

The Securities and Exchange Commission (SEC) has unanimously ​proposed to ditch the "order protection rule," a regulation that was first adopted in 2005 ​to prohibit so-called trade-throughs, which occur when a trade happens at a bid or ‌offering ⁠price that is worse than what is quoted on another venue. The SEC said the rule had driven up costs and complexity and was no longer necessary. "I've opposed the trade-through rule since its ⁠inception and have elaborated on my concerns from this very ​stage," SEC Chair Paul Atkins said.

Trump nominates Jay Clayton as top US intelligence official

President Donald Trump has nominated former SEC chair Jay Clayton to be the country’s leading intelligence official. Mr. Trump had faced widespread criticism for his decision to install Bill Pulte, who has no known experience in intelligence, as acting director of national intelligence while searching for a permanent candidate.

RISK & COMPLIANCE

Compliance burdens emerge as top tax challenge for global businesses

Global businesses are facing growing tax complexity and compliance demands, with nearly 40% of tax and finance leaders identifying rising reporting, administrative, and compliance requirements as the most significant tax-related challenge, according to Deloitte’s 2026 Global Tax Policy Survey. Based on responses from 1,010 executives across 28 jurisdictions, the survey found that measures such as Pillar Two tax rules and the EU’s Carbon Border Adjustment Mechanism are increasing complexity, while 41% of respondents said further simplification of Pillar Two compliance should be a priority. Although 85% expect AI-powered tax tools to improve accuracy and reduce costs, confidence that digitalization will simplify compliance has fallen from 59% in 2024 to 36% in 2026, reflecting concerns about the cost and complexity of implementation. The survey also highlighted intensifying competition for skilled workers and growing interest in tax incentives to support sustainability and talent attraction initiatives.

HEALTHCARE

U.S. workers face higher health insurance costs as employers shift expenses

U.S. employers are preparing to raise employee healthcare costs in 2027 as insurance expenses continue to climb, with two-thirds of large companies expecting to increase monthly premiums and nearly half planning additional changes that will raise out-of-pocket costs for workers. According to a Mercer survey of companies with at least 500 employees, employer healthcare benefit costs are projected to exceed $18,500 per employee in 2026, a 6.7% increase from 2025 and the largest annual jump in 15 years. Health insurance costs are expected to rise by more than 6% for a fourth consecutive year, well above the roughly 3% annual increases that prevailed for much of the past decade. Many employers are responding by increasing employee contributions through higher premiums, deductibles, and copays, while also steering workers toward lower-cost plans with narrower provider networks. The financial impact on employees will vary depending on healthcare usage, with those enrolled in more comprehensive plans potentially seeing costs rise by as much as 8%.

WORKFORCE

Half of Americans fear AI could put someone in their household out of a job

A Reuters/Ipsos poll ‌reveals that more than half (53%) of Americans worry that the ​rise of AI could put them or someone in their household out of work. The survey of 4,531 U.S. adults nationwide found that the fear was spread fairly evenly across respondents by age, gender and education level. The poll found college graduates said they use AI more, with 50% saying they employ it regularly, compared to 34% of people without degrees and 40% of people overall.

TECHNOLOGY

Microsoft restricts Claude Fable for employees

Microsoft is limiting employees' use of Anthropic's Claude Fable 5 because of the AI startup's new data retention requirements. All other Claude models are still available internally at Microsoft, because they operate under Zero Data Retention (ZDR) rules. It is not ​yet clear whether Microsoft's legal teams will clear Claude ​Fable 5 for internal use, The Verge reports.

AND FINALLY...

KPMG report contained AI hallucinations on benefits of ...AI

A report from KPMG on how AI is being used by businesses exaggerated adoption of the technology with bogus case studies that appear to have been based on AI hallucinations.
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