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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

Bloomberg

US News and World Report

Wall Street Journal

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

Reuters

RTT News

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

Under Armour and other major footwear brands, including Adidas and Nike, are urging the Trump administration to exempt shoes from new import tariffs, calling the situation an “emergency” for U.S. workers and consumers. The Footwear Distributors and Retailers of America warn that proposed tariffs could exceed 150% to 220%, jeopardizing hundreds of businesses and tens of thousands of jobs. “Hundreds of businesses face the prospect of closure. Tens of thousands of jobs are at stake,” the April 29th letter states. Despite high tariffs, domestic shoe manufacturing has declined, and the letter argues that these new tariffs will not revive U.S. production. Instead, they will increase costs for consumers and threaten the viability of many companies. U.S. footwear firms are currently grappling with how to manage the higher costs of products already shipped to U.S. ports.

 

The Columbian

Christine Day, a member of Kohl's board since May 2021, has resigned, prompting the retailer to withdraw her nomination for re-election. The company clarified that her resignation was "not due to any disagreements with the company on any matter relating to the company's operations, policies or practices." The change follows the firing of former chief executive Ashley Buchanan and the appointment of Michael Bender as interim CEO. John Schlifske, former CEO of Northwestern Mutual, has taken over as independent chair and is also running for re-election. Shareholders will vote for eight board members on May 14th, down from ten. Day, who previously served as CEO of Lululemon, was appointed to the board during negotiations with activist investors in 2021.

 

Milwaukee Journal Sentinel

Bloomberg

The Office of the Comptroller of the Currency (OCC) has reintroduced a streamlined process for bank mergers, reversing a previous policy that mandated closer scrutiny for larger deals. This interim final rule eliminates the requirement for more deliberate consideration of mergers involving banks with assets exceeding $50bn, a policy established under President Joe Biden. Acting Comptroller of the Currency Rodney Hood said: "The OCC's actions today reduce burden and uncertainty for banks and supports a regulatory framework for bank mergers that is effective and not excessive." The new rule aims to encourage economic growth by reducing government intervention in the banking sector. The OCC also confirmed banks and federal savings associations under its jurisdiction can trade crypto on behalf of customers and outsource bank-permissible crypto activities, including custody and execution services, to third parties.

 

Coin Telegraph

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

Paris-based startup Mistral AI has launched its Le Chat chatbot for corporate use. The open source version of the assistant was launched in February; the enterprise version now connects with content management systems including Microsoft's SharePoint and Google Drive. Mistral operates its own compute capabilities and is reducing its dependency on cloud providers to allow it to offer customers a service that does not depend on the U.S. companies, chief executive Arthur Mensch said. "In the last 100 days we have tripled our business, in particular in Europe and outside of the U.S.," he said, adding: "We've been . . .  growing in the U.S. quite fast as well."

 

Reuters

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

According to the Graduate Management Admission Council (GMAC), a significant increase in applications for master's in accounting programs was reported in 2024, with nearly 72% of programs experiencing growth. This marks a notable recovery since 2020, when only 51% reported an increase. Sue Coffey, CPA, CGMA, and chief executive of AICPA, stated: “The resurgence in applicant interest in master of accounting programs is another encouraging sign for the accounting profession's workforce development efforts.” Additionally, a recent report indicated a 12% rise in undergraduate enrollment in U.S. accounting programs for the upcoming fall semester, reflecting a positive shift in perceptions of the accounting profession among students.

 

Bloomberg Tax

CPA Practice Advisor

Journal of Accountancy

Coinbase, the biggest cryptocurrency exchange in the U.S. with a market value in excess of $50bn, has agreed to buy Deribit, the world’s biggest trading platform for bitcoin and ether options, for $2.9bn in the digital market’s largest ever deal as the industry prepares for an expected wave of demand from asset managers and banks. Greg Tusar, head of institutional product at Coinbase, said: “We believe crypto options are on the cusp of significant expansion, similar to the equity options boom of the 1990s.” 

 

Wall Street Journal

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