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10th December 2025
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THE HOT STORY

Senate GOP pushes alternative to ACA subsidy extension

Senate Republicans are preparing to vote on a healthcare proposal that offers tax-advantaged savings accounts as an alternative to extending enhanced Affordable Care Act (ACA) subsidies, which are set to expire this year. Backed by Sens. Bill Cassidy (R-LA) and Mike Crapo (R-ID), the GOP plan would provide up to $1,500 annually for households using lower-tier ACA plans, but does not address rising premiums. Democrats have dismissed the proposal, pushing instead to extend ACA subsidies for three years at an estimated cost of $90bn. Both plans will face votes Thursday, but neither is expected to easily clear the Senate's 60-vote threshold.

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TAX

Tax prosecutions fall to historic low

In 2025, federal tax prosecutions in the U.S. have fallen to their lowest level in decades, declining over 27% in the 11 months to the beginning of November from the previous year. The decline is attributed to the Trump administration's significant cuts to the IRS' criminal investigative unit and a shift in focus towards immigration enforcement. David Hubbert, a senior fellow at the Tax Law Center at New York University, said: “Decreasing criminal enforcement across all types of taxpayers would signal an indifference to cheating.” The Justice Department's Tax Division was closed, leading to a loss of experienced attorneys, further exacerbating the decline in tax prosecutions. As of November 1st, only 160 prosecutions were initiated, compared to 420 the previous year. The IRS's staffing has also decreased, with over 330 employees cut, impacting its ability to enforce tax laws effectively.

Judge rules on Michigan's marijuana tax

A Michigan Court of Claims judge has allowed a 24% wholesale tax on marijuana to proceed, despite industry challenges. The Michigan Cannabis Industry Association argues the tax violates the 2018 legalization measure, which requires a two-thirds legislative supermajority for amendments. Judge Sima Patel said: “Nothing in (the legalization law) requires that ‘all other taxes' imposed on marijuana be effectuated by an amendment to (that law).” The tax, part of a road funding initiative, is projected to generate $417m next year, raising concerns about its impact on the cannabis market. The uncertainty surrounding the tax's implementation could disrupt planned construction projects, as noted by council researcher Eric Dennis, who emphasized that “construction projects are planned years in advance.” The legal battle continues as lawmakers consider capping marijuana business licenses in response to industry complaints.

Portland mayor pushes for business license tax break

Portland Mayor Keith Wilson has announced plans to significantly enhance the city's business license tax exemption, proposing to raise the threshold from $50,000 to $100,000 in gross receipts. This initiative, aimed at supporting independent contractors, start-ups, and small businesses, is expected to cost approximately $3m annually. Councilor Jamie Dunphy, who will sponsor the proposal, emphasized its importance, commenting: “It is really important for me to have a system that allows small businesses to experiment.” The proposal could exempt around 10,000 additional businesses from the current 2.6% tax on net income, which contributes to a significant portion of the city's $806m discretionary general fund spending. Wilson's announcement was made during the Oregon Leadership Summit, a key event for the state's business community.

INDUSTRY

Back to basics: SEC's new focus

Paul Atkins, the SEC chair, emphasized the need for a "back to basics" approach during his address at the AICPA Conference on Current SEC & PCAOB Developments. He stated: “We have to focus on things like integrity and objectivity and professional skepticism,” highlighting the importance of these principles for protecting investors. Atkins expressed concern over the past five years, noting that some firms have strayed from financial materiality and accounting standards. He also discussed the PCAOB's future, stressing the need for clear standards and improved audit quality. Additionally, Atkins aims to revitalize the public company landscape, addressing the decline in IPOs due to excessive disclosure burdens and governance issues. He concluded by urging professionals to prioritize investor interests and maintain focus on fundamental principles.

ECONOMY

U.S. job openings hit five-month high in October

Job openings in the U.S. edged up to 7.67m in October, the highest in five months, driven by gains in retail, wholesale trade, and health care. The Labor Department's latest Job Openings and Labor Turnover Survey (JOLTS) also suggested that the broader labor market showed signs of slowing as layoffs rose to 1.85m, the highest since early 2023, and hiring dropped by 218,000 to 5.15m. The quits rate, a key confidence indicator, fell to its lowest level since May 2020. Despite the slight increase in vacancies, the data reflect reduced labor demand amid economic uncertainty and higher business costs. The Federal Reserve is widely expected to respond later today by announcing a cut in interest rates.

LEGAL

Texas tax rules shake up warehouses

The Texas Comptroller's new sales tax sourcing rules have raised concerns about the economic viability of warehouse development deals. Cities like Coppell are suing the comptroller, arguing that the changes could exempt fulfillment centers from local sales tax. The revised Rule 3.334 states that a location must be staffed and actively receiving orders to qualify as a business for tax purposes, meaning that without customer orders, there is no sales tax revenue. Andrew Leahey, an assistant professor at Drexel Kline School of Law, emphasizes that local governments should reconsider their reliance on sales tax incentives, observing: "Cities should invest in the kind of growth that sticks: people, skills, and place-based industries." The case, City of Coppell v. Hancock, highlights the need for municipalities to focus on sustainable economic development rather than temporary tax gains.

REGULATORY

U.S. consumer bureau to issue 'interim final' open banking rule

The Consumer Financial Protection Bureau (CFPB), the top U.S. watchdog agency for consumer financial protection, is to publish "interim" rules governing open banking and consumer data rights because it expects to run out of funds before completing a process now underway to rewrite Biden-era regulations. "The Bureau anticipates having sufficient funds to continue operations until at least December 31, 2025," the agency told a federal court in Kentucky. "In light of that development, the Bureau will undertake efforts to issue an interim final" rule. President Donald Trump and other top officials have said the CFPB should be dismantled; the White House has refused to fund the agency.

PERSONAL FINANCE

Tax benefits drive 529 plan popularity

Morningstar's recent analysis reveals that only 31 out of 59 529 plans received "gold," "silver," or "bronze" ratings for investment quality, management, and fees. Despite this, Hyunmin Kim, the research analyst, noted that "an increasing number of plans have adopted some or more of the positive attributes" over the past 12 years. States like Alaska, Illinois, Massachusetts, Pennsylvania, and Utah excelled in managing investor capital. Dinon Hughes from Nvest Financial emphasized that tax incentives are crucial for clients, stating that 529 plans are "definitely still the gold standard of education savings." With nearly 17 million accounts holding $525bn in assets, the popularity of 529 plans continues to grow, driven by rising college costs and tax benefits. However, alternative investment accounts are gaining traction among savers seeking flexibility.

Biden's SAVE student loan plan to end under proposed legal settlement

The U.S. Education Department has agreed to end former President Joe Biden’s SAVE student loan repayment plan as part of a proposed settlement with Republican-led states who argued it was too generous. SAVE, which offered low or $0 payments and early loan forgiveness for low-income borrowers, will stop accepting new applications, and 7m current enrollees will be shifted to other plans. Borrowers must soon choose between fixed or income-driven options, ahead of the rollout of new Republican-backed repayment plans in 2026. The change comes as 12m borrowers are already behind on payments, raising concerns about a potential default wave.

 
NPR

SMALL BUSINESS

Small business sentiment rose last month

Confidence among small businesses in the U.S. edged up in November, with optimism boosted by higher sales expectations, the National Federation of Independent Business (NFIB) reported on Tuesday. The organization's small-business optimism index rose 0.8 point to 99, ahead of the unchanged 98.2 expected among economists polled by the Wall Street Journal. Six of the 10 components that make up the gauge increased, while three decreased. One was unchanged. A net 19% of small companies said they plan to create new jobs in the next three months, up four points from October, and the largest share so far this year. Labor quality continued to rank as the primary issues affecting small business owners. The survey also found that the net percent of owners raising average selling prices rose 13 points from October to a net 34%, which was the highest reading since March 2023 and the largest monthly jump in the survey's history.

TECHNOLOGY

PwC AI chief: Fast adopters see triple the revenue per employee

Joe Atkinson, PwC's global head of artificial intelligence (AI), says AI is transforming business so rapidly it's overwhelming organizations, but companies that scale quickly are seeing up to three times more revenue per employee. Speaking on CNBC, Mr. Atkinson noted the experimentation phase is over, and firms must now embed AI broadly. While adoption is straining traditional change management, PwC believes AI-driven growth will ultimately benefit both businesses and workers who embrace the tools.

CRYPTO

U.S. bank regulator says banks can act as crypto intermediaries

The Office of the Comptroller of the Currency (OCC) has confirmed that banks can act as intermediaries in “riskless principal” crypto transactions, in guidance which narrows the gap between the traditional financial sector and crypto activities. In an interpretive letter, the OCC said banks may act as principals in a crypto trade with one customer while simultaneously entering an offsetting trade with another, a structure that mirrors riskless principal activity in traditional markets. The move would allow customers “to transact crypto-assets through a regulated bank, as compared to non-regulated or less regulated options,” the OCC said.

INTERNATIONAL

Australia's world first social media ban takes effect

Australia has become the first country to implement a minimum age for social media use. Platforms including Instagram, TikTok and YouTube will have to block more than a million accounts. Other governments around the world - and some U.S. states - say they plan similar steps. "[The ban] could become a proof of concept that gains traction around the world," observed Nate Fast, a professor at the University of Southern California's Marshall School of Business. Big Tech is unhappy with the legislation. "Australia is engaged in blanket censorship that will make its youth less informed, less connected, and less equipped to navigate the spaces they will be expected to understand as adults," said Paul Taske from NetChoice, a trade group representing several big tech companies.
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