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Accountancy Slice
USA
3rd November 2025
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THE HOT STORY

Top 10 U.S. billionaires’ collective wealth grew by $698bn in past year

The collective wealth of the top ten U.S. billionaires has increased by $698bn over the past year, according to a new Oxfam America report, which warns that decades of bipartisan policy choices have exacerbated inequality. Using Federal Reserve data from 1989 to 2022, the report finds that the top 1% of households gained $8.35m on average - 101 times more than the median household and 987 times more than the bottom 20th percentile. Meanwhile, over 40% of Americans, including nearly 50% of children, are classified as low-income. The U.S. ranks worst among OECD countries for relative poverty and near-worst for child poverty, infant mortality and life expectancy. The report criticizes dismantled social protections and tax cuts such as Donald Trump’s recent legislation, calling it a major upward wealth transfer. It proposes reforms in four areas: tax policy, social safety nets, union protections, and campaign finance.

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TAX

Tech tax breaks: a billion-dollar question

Since 1994, Washington state's tax breaks for the tech sector have sparked debate over their effectiveness. Initially aimed at fostering economic growth, these incentives have resulted in over $1.06bn in savings for companies like Amazon, Microsoft, and Google. Gov. Mike Lowry said the breaks would “ensure this state continues to produce cutting-edge technologies and products.” However, a 2012 audit revealed mixed results, with no clear link between the tax breaks and job creation. Margaret O'Mara, a professor at the University of Washington, noted that “taxes are pretty low down the list” of factors driving tech growth, emphasizing the importance of a pro-innovation environment. The tax breaks expired in 2015, and questions remain about their true impact on the region's tech industry.

Wisconsin Attorney General challenges religious tax exemptions following Supreme Court ruling

Wisconsin Attorney General Josh Kaul has moved to eliminate religious exemptions from unemployment taxes, following a unanimous U.S. Supreme Court ruling that found the state violated the First Amendment by taxing Catholic Charities Bureau while exempting other faith-based organizations. Instead of extending exemptions to similar groups, Kaul argues for removing them altogether to ensure equal treatment, citing concerns over potential broader exemptions for large religious entities. Attorneys for Catholic Charities have accused the state of shifting tactics to continue excluding them.

 
WPR

FIRMS

KPMG to assess staff AI use

KPMG is to evaluate how employees use artificial intelligence tools during annual performance reviews. Niale Cleobury, KPMG's global AI workforce lead, said the firm is already monitoring AI usage through tools like Microsoft's Copilot. Starting in 2026, staff will be assessed on their achievement of AI objectives. “We all have a responsibility to be bringing AI to all of our work," they said.

ECONOMY

U.S. tariffs have muted economic impact

Despite initial warnings of inflation and recession, inflation has remained below forecasts, and economic growth continues. Tariff revenues have fallen short of expectations, estimated at $400bn annually versus predictions of $500bn to $1tn, due to lower effective tariff rates of around 12.5%, and corporate strategies including stockpiling, shifting production abroad, and using bonded warehouses. Consumers have borne 50%–70% of tariff costs, while companies, helped by strong post-pandemic profit margins, have absorbed the rest. Sectors like autos and apparel have seen minimal price rises due to these mitigations. However, economists warn long-term inflationary effects and corporate hiring hesitancy may still materialize.

CORPORATE

U.S. bank deals surge as Trump-era regulators race through approvals

The average time to finalize a bank deal following its announcement has dropped to four months this year, the shortest period since at least 1990, according to data from S&P Global.

LEGAL

Firms take action over tariffs

Learning Resources chief executive Rick Woldenberg and other small business owners are taking their case against President Donald Trump’s “Liberation Day” tariffs to the U.S. Supreme Court. Reuters notes that the tariffs, imposed under the International Emergency Economic Powers Act, have significantly increased costs for small importers like Learning Resources and MicroKits, forcing cutbacks in expansion, hiring, and production. Plaintiffs argue Trump exceeded his authority, while large companies have largely stayed out, relying on lobbying instead. Lower courts have previously ruled the tariffs unlawful, and the Supreme Court will hear arguments this Wednesday.

Taxpayer's 'frivolous' arguments backfire

In a recent ruling, the Tax Court determined that Albert Mark Fonda's arguments against the taxability of his wages and retirement distribution were entirely frivolous. Fonda, who had not filed a federal income tax return since 2012, received wages of $125,519 and a retirement distribution of $101,735 in 2019. The court noted that Fonda's claims were "cut and pasted gibberish from tax-protester websites" and had been rejected in numerous prior cases. Despite warnings from the court, Fonda continued to advance his arguments, leading to a $7,500 penalty under Sec. 6673(a)(1). The court upheld the IRS's adjustments, confirming that Fonda's income was taxable and that he had failed to provide any legal support for his claims.

SMALL BUSINESS

Small businesses brace for holiday boom

Small businesses anticipate a significant boost during the holiday season, expecting 47% of their total yearly revenue in 2025 to come from holiday shopping, up from 33% in 2024. According to the Intuit QuickBooks 2025 Holiday Shopping Report, 93% of business owners view this period as crucial for their success. Despite inflation worries, consumers plan to increase their holiday spending by 25%, with an estimated $109bn directed towards small businesses. "Shop small" resonates with 48% of consumers, highlighting their commitment to supporting local enterprises.

WORKFORCE

Becoming an employer of choice

In the final article of the "Building a Better Firm" series, Anita Dennis highlights in the Journal of Accountancy how CPA firms can become employers of choice by fostering a positive workplace culture. Lisa Simpson, AICPA vice president, emphasizes that "the first five years of employment are critical in engaging and retaining new professionals." Key strategies include offering competitive salaries, manageable workloads, and clear career paths. Firms like Gardiner + Company and Wilson Ivanova exemplify these principles by prioritizing employee engagement and transparency. For instance, Wilson Ivanova encourages staff to participate in community service and mentoring, while Gardiner + Company has shifted to remote work to reduce travel.

STRATEGY

Wall Street prepares for collaboration with Mamdani

Reuters reports that the finance sector has broad misgivings about the prospect of frontrunner Zohran Mamdani becoming New York City's mayor, but many are hopeful he moderates his positions as they prepare to try and collaborate with him.

TECHNOLOGY

Tech groups step up efforts to solve AI’s big security flaw

Google DeepMind, Anthropic and Microsoft are trying to prevent ‘indirect prompt injection attacks,’ a critical security flaw in their large language models that can be exploited by cyber criminals.

INTERNATIONAL

Wealthy Britons face exit tax threat

U.K. finance minister Rachel Reeves is considering a range of tax increases to address a fiscal gap of up to £35bn ($46bn) ahead of the budget announcement on November 26. Among the options being evaluated are an exit charge for wealthy Britons leaving the country and higher levies on expensive homes. While Treasury officials have prepared numerous potential hikes, the final decisions on which taxes to implement remain undecided.

Italy seizes Campari shares in tax fraud probe

Shares in Campari fell 5% this morning, after Italian tax police seized €1.29bn ($1.50bn)-worth of shares in the Italian drinks maker held by its controlling shareholder for alleged tax evasion. The investigation focuses on Luxembourg-based holding company Lagfin SCA’s alleged failure to pay exit tax on about €5.3bn of capital gains generated when it absorbed an Italian subsidiary that held Campari’s controlling stake.

AND FINALLY...

U.S. retailers forced into rethink after end of penny production

The U.S. Treasury’s decision to stop minting pennies has forced retailers nationwide to rethink cash transactions, prompting rounding policies and customer warnings. Businesses such as Sheetz and Kwik Trip have begun rounding to the nearest nickel, while others urge card payments or exact change. Retailers face legal uncertainty as some states require exact cash returns. The National Retail Federation is pressing for federal guidance, warning profits may shrink. Ending penny production could save $56m annually but complicates pricing and payments.
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