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The legislative process for President Donald Trump's extensive tax package is set to commence next week, with key House committees, including the Ways and Means Committee and the Energy and Commerce Committee, reviewing the bill. Despite ongoing disagreements among Republicans, particularly regarding the state and local tax deduction and estate tax restrictions, the committees aim to advance the legislation to the House floor. The Energy and Commerce Committee is tasked with identifying $880bn in savings over the next decade, a challenge complicated by divisions over Medicaid cuts. "We are still working," said Energy and Commerce Chairman Brett Guthrie. A vote on the comprehensive tax and spending package is anticipated by the end of May, requiring near-unanimous support from House Republicans for passage. In other Trump administration tax news, the Wall Street Journal reports that the president is considering backing a tax structure that would return the top individual income-tax rate to 39.6% from 37% for people making over $2.5m. Additionally, House Speaker Mike Johnson (R-LA) said on Thursday that Republicans are discussing raising the state and local tax (SALT) deduction cap to $30,000.

 

Accounting Today

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US News and World Report

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David M. Walker, former Comptroller General, argues that the IRS should prioritize modernizing its outdated systems instead of launching new initiatives like Direct File. He says: "Public confidence in the IRS right now is low," as he emphasizes the need for the agency to focus on its core mission of processing tax returns. The Direct File tool, which aims to simplify tax filing, has faced criticism for its limitations and lack of comprehensive cost estimates, with only 141,000 out of 19m eligible users submitting returns. Mr. Walker suggests that the IRS's resources would be better spent on addressing pressing challenges, including identity theft and outdated technology, rather than developing new programs that may not meet taxpayer needs.

 

Bloomberg Tax

State Sen. Dan Dawson and Rep. Bobby Kaufmann are pushing for property tax reform in Iowa, addressing constituents' concerns about rising property taxes. The latest version of their bill, Senate Study Bill 1227, proposes a gradual 10-year phaseout of the property tax rollback system and introduces a 25% exemption on assessed home values, up to $125,000. Dawson said: “I think that this is darn near close to threading that needle between small communities, large communities . . . not having a one-size-fits-all approach.” The bill has received mixed reactions, with business lobbyists praising the changes while school representatives express concerns about funding impacts. The bill is now eligible for consideration by the full Senate Ways and Means Committee.

 

The Gazette Cedar Rapids Iowa

Missouri is on track to become the first state to eliminate the capital gains tax on profits from asset sales, including stocks and real estate. The legislation, which has received final approval, aims to exempt individuals from this tax this year, with potential future benefits for corporations if state revenues continue to rise. Proponents argue that the repeal will stimulate economic growth, with Jonathan Williams, president of the American Legislative Exchange Council, saying: “When you tax something you get less of it.” However, critics warn that the repeal will primarily benefit the wealthy and could lead to significant revenue losses for public services, with estimates suggesting a cost of up to $600m annually. The Missouri Budget Project highlights that 80% of the tax relief would go to the top 5% of earners, raising concerns about economic inequality.

 

US News and World Report

The number of people newly filing for unemployment benefits declined last week, the Labor Department reported on Thursday, to levels consistent with a stable labor market following a short-term spike coinciding with spring recess and the Easter holiday at the end of April. Initial claims in the seven days to May 3rd fell 13,000 from a week earlier to 228,000. Economists polled by the Wall Street Journal had expected to see 230,000 new filings. The four-week moving average inched up 1,000 to 227,000, while continuing claims, reported with a one-week lag, fell by 29,000 to 1.879m. "The previous week's jump in claims was reversed in the week ended May 3rd, and there is little in the incoming data to challenge the Federal Reserve's assessment that labor market conditions remain solid," said Michael Pearce, deputy chief U.S. economist at Oxford Economics. "Cutting through the noise, both initial and continued claims remain stable, and claims by federal workers have declined over the past month. We expect the latter to rebound towards the end of this month as a renewed wave of layoffs picks up steam, and we anticipate initial jobless claims will rise gently into the second half of the year as the economy slows."

 

Bloomberg

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Wall Street Journal

U.S. labor productivity fell in the first quarter for the first time since the second quarter of 2022, resulting in a surge in labor costs that could squeeze margins for businesses at a time when they are facing rising costs from tariffs. Nonfarm productivity, which measures hourly output per worker, fell at a 0.8% annualized rate last quarter, the Labor Department's Bureau of Labor Statistics said on Thursday. Because of the decline in productivity, unit labor costs — what businesses pay employees to produce one unit of output — jumped 5.7% in the January-March period, the most in a year. Labor costs increased at a 1.3% rate from a year ago. Hourly compensation shot up at a 4.8% rate after advancing at 3.7% pace in the prior quarter. It grew at a 2.7% rate from a year ago.

 

Bloomberg

Reuters

Accounting judgments, while routine, can lead to significant issues if overly optimistic or poorly documented. The SEC remains vigilant, having initiated over 45 enforcement actions in 2024 alone concerning financial misreporting. A notable case involved United Parcel Service, which faced a $45m fine for misrepresenting earnings due to selective disclosure. Similarly, Symbotic Inc. encountered legal troubles after prematurely recognizing revenue, resulting in a 35% drop in share price. The SEC's focus on financial transparency underscores that "accounting misstatements remain a primary concern." Companies must prioritize sound accounting judgments to maintain stakeholder trust and avoid regulatory repercussions.

 

Accounting Today

Financial worries are having a significant impact on the nation's mental health, with 43% of U.S. adults reporting negative effects, according to Bankrate's Money and Mental Health Survey conducted in March 2025. Inflation is a major contributor, cited by 69% of those affected. The survey highlights that money-related stress is more prevalent than concerns about politics or health. Experts suggest focusing on controllable financial aspects and breaking down goals into manageable tasks to alleviate stress. “Taking proactive steps to manage your finances can provide a sense of stability and security,” says Sarah Foster, a U.S. Economy Reporter at Bankrate.

 

The Baltimore Sun

Today's young CPAs are seeking more than just a paycheck; they desire purpose, impact, and flexibility in their careers, writes Kendale King, founder of KCK CPA. Unlike previous generations, they want growth, mentorship, and a voice in their firms from the start. Traditional tactics like pizza parties and sign-on bonuses are no longer sufficient to attract talent. To address this, firms are increasingly adopting gamification strategies to make accounting more engaging. These include interactive recruitment experiences, dynamic training sessions, and community-building activities that foster connection and accountability. By incorporating game-based tactics, firms can enhance their culture, improve retention, and create a sense of belonging among employees. Gamification not only makes learning enjoyable but also transforms the perception of accounting into a vibrant and rewarding career path.

 

Accounting Today

Krishnan Chandrasekhar, U.S. Tax Leader at PwC, emphasizes the evolving role of tax leaders in driving strategic decisions that enhance company growth and profitability. He notes that "the organizations best positioned for success will be those where tax planning is directly tied to long-term operational targets." In today's volatile economic environment, tax executives are expected to provide foresight and scenario planning, ensuring that tax strategies align with broader business goals. As policy shifts loom, tax leaders must demonstrate readiness and flexibility, transforming tax from a mere compliance function into a strategic asset that supports growth and innovation. This shift is crucial for meeting the rising expectations of stakeholders who seek stability and confidence in navigating uncertainty.

 

Bloomberg Tax

A bill aimed at establishing a regulatory framework for stablecoins in the U.S. Senate has failed to advance, falling short of the 60 votes needed to end debate. The setback is seen as a significant blow to the cryptocurrency industry, which has been advocating for clearer regulations and had previously portrayed the issue as bipartisan. Concerns from Senate Democrats, particularly regarding President Trump's crypto ventures, contributed to the bill's failure, with some lawmakers expressing disappointment over the lack of negotiation on key provisions.

 

Reuters

The notorious ransomware group Lockbit has reportedly experienced a breach of its own, as indicated by a rogue post on one of its darkweb sites. The message, stating "Don't do crime CRIME IS BAD xoxo from Prague," included a link to what appears to be a cache of leaked data. Christiaan Beek, senior director of threat analytics at Rapid7, said that "The leaked information looks real." He highlighted the aggressive tactics Lockbit employs to extract even small payouts from victims. Some darkweb sites linked to Lockbit were found to be inoperative, suggesting potential disruptions in their operations. Lockbit, often referred to as "the Walmart of ransomware groups," has previously survived significant law enforcement actions, demonstrating its resilience in the cybercrime landscape.

 

Reuters

U.K. Prime Minister Sir Keir Starmer and U.S. President Donald Trump have hailed an "historic" trade deal between the U.K. and the U.S., which eases some, but not all, of the tariffs imposed by the U.S. last month. The deal will see tariffs on British car exports to the U.S. fall from 27.5% to 10% for the first 100,000 vehicles per year, 25% tariffs on steel and aluminum will be removed, and the U.K.’s pharmaceutical industry has been promised "preferential treatment." British beef farmers will be allowed access to the U.S. market and vice versa, with no reduction in food standards in the U.K. The U.S. and the U.K. have been aiming to strike a bilateral trade agreement since the British people voted in 2016 to leave the European Union, allowing the country to negotiate independently of the rest of the continent. Then-Prime Minister Boris Johnson touted a future deal with the U.S. as an incentive for Brexit. Some economists have questioned the value of the announcement. “This looks like a deal that was largely done for show,” said Dean Baker, co-founder of the Center for Economic and Policy Research and one of the first economists to identify the 2008 housing bubble. “There already were very few trade barriers to U.S. exports to the U.K., and this really doesn’t change that picture in any meaningful way.”

 

Boston Globe

Financial Times

Los Angeles Times

The Daily Telegraph

Chicago-born Cardinal Robert F. Prevost was on Thursday named the 267th pontiff of the Roman Catholic Church and the first American pope, taking the name Leo XIV. Writing for the Los Angeles Times, Matt Hamilton takes a look at the life of Pope Leo XIII, who served as pontiff from 1878 to 1903. In 1891, he used his platform to defend union organizing and the rights of workers in his encyclical, “Rerum Novarum.” He condemned “wealthy owners and all masters” who sought to profit off “the indigent and destitute.” His writing launched a latter-day focus by successive popes on the underclasses, capitalism and the concentration of wealth and power in the hands of the few, Hamilton writes.

 

Los Angeles Times