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Oregon Attorney General Dan Rayfield has initiated a federal lawsuit aimed at overturning President Donald Trump's recently-announced tariffs, saying that only Congress has the authority to impose such measures. Joined by 11 other states, the lawsuit highlights what is said to be the detrimental impact of these tariffs on Oregon's trade-dependent economy, particularly the footwear and apparel sectors that rely heavily on imports from Asia. The tariffs, which include 145% on Chinese imports and a 46% tax on goods from Vietnam, are forecast to severely burden small businesses. Rayfield's office contends that the president's unilateral power to impose tariffs disrupts the constitutional order, observing: “By claiming the authority to impose immense and ever-changing tariffs . . . the President has upended the constitutional order and brought chaos to the American economy.” The lawsuit has been filed in the U.S. Court of International Trade in New York.

 

Accounting Today

CPA Practice Advisor

OregonLive.com

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President Donald Trump's proposed tax bill, which aims to extend provisions of the Tax Cuts and Jobs Act (TCJA) and introduce new tax breaks, is advancing in Congress. House Republicans recently passed a budget blueprint that aligns with Senate Republicans' earlier outline. The GOP plans to utilize budget reconciliation to pass the bill with a simple majority, avoiding a Senate filibuster. Dustin Stamper, managing director of tax legislative affairs at BDO USA, stated: "The final version of the Senate reconciliation instructions give them a little more breathing room on tax that will allow them to do some things, particularly on the business side that might have been tough and with less pressure for really painful revenue raisers. I don't think they'll be entirely free of some tough choices between tax priorities, but they certainly got a little more breathing room than they would have had under the original House version." The bill could raise the debt limit by $5tn and cut taxes by up to $5.3tn over a decade, potentially increasing the national debt by $5.8tn by 2034. Key provisions under consideration include adjustments to the state and local tax deduction limit and the elimination of the carried interest tax break.

 

Accounting Today

After nearly a decade of significant taxpayer spending on homelessness, Los Angeles voters have approved two new tax measures, ULA and A, which will provide over $1.5bn for housing and homeless prevention. Miguel Santana, president of the California Community Foundation, expressed hope for a new era, stating, “We’re in Day One of this new chapter on this issue where my hope is that generations from now, it will become instinctual.” However, the introduction of multiple oversight bodies has raised concerns about complexity and coordination. Los Angeles City Councilmember Nithya Raman noted her frustration with the lack of immediate outcomes from her involvement in the new boards. The oversight structure aims to ensure accountability and transparency, but challenges remain in navigating the various agencies and their overlapping functions. Ann Sewill, former head of the Los Angeles Housing Department, emphasized the need to restore public trust, stating, “The things all the committees are trying to do is not only carry out the voters' intent, but make the public glad they voted for this.”

 

Los Angeles Times

Tax and finance executives globally are preparing for increased tariffs and greater tax disclosures, as revealed in a Deloitte survey of 1,100 professionals from 28 countries. A significant 82% expect heightened public tax disclosures in the next two to three years, with 81% citing national transparency laws as a key regulatory influence. Amanda Tickel, Deloitte's global leader of tax and legal policy, said: "As they grapple with widespread uncertainty, global organizations are focusing on what they can control." The survey also highlighted concerns over AI's role in tax technology, with only 29% believing it will enhance accuracy. Sustainability has risen in priority, with 55% of respondents identifying it as crucial for their businesses. However, compliance costs remain a challenge, especially in Africa, where 45% of respondents view it as a major issue.

 

Accounting Today

EY has appointed Martin Fiore as the Americas vice chair for tax, effective July 1st. Mr. Fiore will manage tax strategy and client services, leading a team of over 18,000 across multiple regions, including Canada, the U.S., and the Caribbean. He will also join the U.S. management committee and the Americas operating executive. In his previous positions, Mr. Fiore has been credited with guiding EY US and its clients through geopolitical changes and technological advancements including AI, impacting tax.  

 

Bloomberg Tax

International Accounting Bulletin

U.S. initial jobless claims climbed last week, according to the Department of Labor, but remained close to recent levels. In the seven days to April 19th there were 222,000 initial claims, up 6,000 from the prior week and in line with economist expectations. The four-week moving average dropped 750 to 220,250, while continuing claims, reported with a one-week lag, fell 37,000 tor 1.841m. "The jobless claims data for now are consistent with a labor market that is stable enough to allow the Federal Reserve to keep policy on hold while it monitors the path of inflation as tariffs kick in," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.

 

Bloomberg

Nasdaq

Reuters

Wall Street Journal

Sales of previously occupied U.S. homes decreased by 5.9% in March from February, marking a sluggish start to the spring homebuying season. The National Association of Realtors (NAR) reported a seasonally adjusted annual rate of 4.02m units sold, falling short of the expected 4.12m. On an annual basis they were down 2.4%. The national median sales price reached an all-time high of $403,700, reflecting a 2.7% increase from the previous year. Additionally, unsold homes rose to 1.33m, indicating a four-month supply at the current sales pace, compared to a balanced market of five-six months. NAR chief economist Lawrence Yun noted that “residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.” 

 

AP News

New York Post

Wall Street Journal

U.S. demand for durable goods soared last month, according to the Commerce Department, driven by a surge in the commercial-aircraft business, as companies got orders in ahead of President Donald Trump's tariff announcements at the start of April. New orders for manufactured goods increased by 9.2% to $315.7bn in March, compared to a 0.9% rise in February. Economists were predicting an increase of just 2%. Transportation equipment orders rose by 27% on the month, while civilian aircraft orders popped by 139%. Orders for civilian capital goods were up by 29.4%.

 

The Hill

Reuters

Wall Street Journal

The SEC has seen a significant reduction in its workforce, losing 16% of its staff since last year, primarily due to early retirement offers from the Trump administration. The decline has left critical divisions, such as Trading and Markets, with staffing losses of up to 20%. Joel Seligman, a professor at Washington University School of Law, warned that "cuts to the size of the staff . . . can lead to significant gaps in the performance of the SEC in preventing fraud." Jessica Wachter, who was the SEC's chief economist before she stepped down earlier this year, said: "If something breaks in the markets, it makes a difficult matter much worse . . . It's important to keep sufficient levels of staffing so that critical knowledge concerning these functions doesn't get lost."

 

U.S. News

Niklas Elofsson and Vsevolod Konyshev from KPMG Sweden discuss how tax functions can effectively manage complexity and create long-term value through structured transformation strategies. They emphasize that "reactive measures are insufficient" in the face of increasing regulatory demands and resource pressures. The authors outline six key areas for successful transformation: people, governance, process, data, technology, and the tax delivery model. They advocate for a strategic assessment of current capabilities to identify strengths and weaknesses, followed by a roadmap prioritizing impactful initiatives. Leveraging data and technology is crucial, with a focus on establishing reliable data sources and integrating various tools. Additionally, aligning people and processes with clear governance and change management strategies is essential for success. They conclude that integrated transformation is vital for reducing compliance costs and enhancing the tax function's strategic value.

 

International Tax Review

Andrew Parkes from Andersen discusses the U.K.'s proposed tax whistleblower program, which aims to incentivize informants with a share of collected taxes. Drawing inspiration from the IRS and Canadian Revenue Agency, HM Revenue & Customs (HMRC) hopes to enhance reporting of tax evasion. However, Parkes notes that the program's success may be limited due to potential risks for informants, such as job loss or legal issues. He states, "A U.K. tax whistleblower payment program is a good idea . . . . but there are serious risks and problems if the program isn't carefully designed." The complexities surrounding the taxation of rewards and the ethical implications of profiting from crime also pose challenges for the initiative.

 

Bloomberg Tax