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Accountancy Slice
USA
11th December 2025
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THE HOT STORY

Senate faces deadlock over expiring ACA subsidies as costs set to soar

The U.S. Senate will vote today on rival bills to extend Affordable Care Act premium tax credits, which are due to expire at the end of December, affecting 21.8m people. Democrats propose a three-year extension, while Republicans back a $1,000 payment into health savings accounts instead. Neither bill is expected to pass, raising the likelihood of steep healthcare cost increases, with KFF estimating premiums could more than double. A bipartisan House group has offered a compromise extension through 2027, but Republican House leadership remains opposed to the credits.

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TAX

San Francisco aims to boost film tax credits

San Francisco Supervisor Rafael Mandelman has proposed a new tiered film and television tax credit to attract more productions to the city. The legislation aims to provide a 10% rebate on local spending up to $1m and a 20% rebate for spending exceeding that amount. Mandelman said: “As localities across the state compete to attract more film production, San Francisco must stay in the game.” Co-sponsor Supervisor Connie Chan emphasized the need for the update to ensure the program's benefits are fully realized, predicting it will create job opportunities and boost tourism. This proposal follows California's recent increase in its film tax credit program cap from $330m to $750m, which has already led to over three dozen TV shows and 52 films receiving credits. The legislation is set for a committee hearing next month.

FIRMS

BDO global revenue rises 4% to $11bn

BDO has reported a 4% rise in global revenue to $11bn for the year to 30 September 2025, led by 7% growth in tax and 4% in advisory. Including BDO Alliance firms, revenue increased 7% to over $16bn. Regional highlights include 7% growth in EMEA and 3% in Asia-Pacific, with flat revenue in the Americas. The network has reaffirmed its decision to remain independent and announced Trond-Morten Lindberg as incoming global chief executive, succeeding Pat Kramer in November 2026. 

ECONOMY

Federal Reserve announces third interest rate cut of 2025

The Federal Reserve's Open Market Committee voted 9-3 on Wednesday to lower the baseline interest rate down to a range of 3.5%-3.75%, a reduction of 0.25 percentage points, its third cut of the year. The vote indicates a division among committee members over how to respond to an economy offering a mixed signal, with inflation remaining above the Fed’s target, which would typically argue for holding rates steady, while slower hiring and a modest uptick in unemployment suggest a case for easing. Following the vote, Fed chair Jerome Powell said that, after three quarter-point reductions, interest rates were in the range of “neutral,” a level that the Fed has been seeking because it neither accelerates growth nor dampens it. Commenting on the cut, President Donald Trump said that he is seeking a new Fed chair who "will be honest with interest rates," adding that the United States should have "the lowest rates in the world."

U.S. budget deficit falls 53% in November as tariff revenues surge

The U.S. posted a $17bn budget deficit in November, down 53% from $367bn a year earlier, as customs duties helped push monthly revenues to a record $336bn, according to the Treasury Department. Spending fell to $509bn, partly due to delays from a recent government shutdown. The fiscal year 2026 deficit so far stands at $458bn, down from $624bn in the same period last year.

Labor cost growth slows in Q3 as job market cools

U.S. labor costs rose by a modest 0.8% in the third quarter of 2025, slightly below expectations, signaling a cooling labor market that could ease inflation pressures. According to the Labor Department’s Employment Cost Index (ECI), wage growth slowed from the previous quarter’s 0.9%, while annual labor cost growth dipped to 3.5%, the smallest increase since mid-2021. The moderation is attributed to declining job resignations and softening demand for workers. Data collection had not been completed before the longest government shutdown in history, the agency said. "This may indicate that these results could experience higher revisions than usual," observed Eugenio Aleman, chief economist at Raymond James. "Nevertheless, this is good news . . . because these numbers reinforce the Fed chairman's argument over the last year that labor costs, so far, are not behind the recent increase in inflation."

LEGAL

Faith-based oil driller is first U.S. company to block investor class-action lawsuits

Zion Oil and Gas, an oil driller that uses biblical verses to guide exploration, has become the first company to block class-action shareholder lawsuits under new SEC-approved management-friendly policies.

AUDIT & REPORTING

How AI threatens auditors' critical thinking

Officials from the PCAOB are expressing caution regarding the impact of artificial intelligence (AI) and private equity (PE) funding on auditing firms. At the AICPA Conference, PCAOB acting chair George Botic said: "AI has the potential to transform how audits are performed and to improve the quality of audits." However, he warned that reliance on AI could erode critical thinking and professional judgment among auditors. Botic also highlighted the dual nature of PE investments, which can enhance growth and technology adoption but may also pressure firms to prioritize profitability over audit quality. Christine Gutia, another PCAOB official, echoed these concerns, noting that while PE can support talent recruitment and technology investments, it may also lead to reduced staffing and threats to auditor independence. Both officials emphasized the need for careful monitoring of these trends to ensure audit quality is maintained.

FRAUD

Treasury eyes central role in bank AML enforcement under Trump overhaul

The U.S. Treasury is proposing to take a lead role in anti-money-laundering (AML) enforcement, aiming to curb what it sees as excessive and ineffective regulation of banks. Under the draft plan, regulators would need Treasury’s Financial Crimes Enforcement Network (FinCEN) approval before penalizing banks for Bank Secrecy Act breaches, especially in cases of technical violations. Treasury Secretary Scott Bessent argues current rules stifle economic growth and wants FinCEN to act as a "gatekeeper" for AML enforcement. The proposal would undergo public consultation before implementation.

CYBERSECURITY

OpenAI warns of high cybersecurity risks from new AI models

OpenAI has issued a warning regarding its forthcoming artificial intelligence (AI) models, indicating they could present a "high" risk to cybersecurity as their capabilities evolve rapidly. The company noted that the models might not only develop zero-day exploits but could also assist in sophisticated intrusion operations aimed at significant effects. To mitigate these risks, OpenAI is investing in bolstering its cybersecurity measures and is creating an advisory group, the Frontier Risk Council, to collaborate with cybersecurity experts on these challenges.

INTERNATIONAL

E.U. deal to scale back corporate sustainability laws

E.U. officials are to limit the scope of the bloc’s contested supply chain law and remove a clause requiring businesses to make climate transition plans after months of pressure from companies and governments including the United States. Under the changes, the E.U will limit its corporate sustainability due diligence directive (CSDDD) to only the largest E.U. corporations - those with more than 5,000 employees and €1.5bn annual turnover. A spokesperson for U.S. oil and gas major ExxonMobil said the changes "didn’t go nearly far enough," observing that the E.U.'s due diligence law would still apply to foreign companies.

AND FINALLY...

President Trump launches $1m 'gold card' immigration visas

President Donald Trump's administration has launched the "Trump Gold Card" visa program offering fast-tracked U.S. visas to wealthy foreigners. The card will give buyers a "direct path to Citizenship for all qualified and vetted people . . . Our Great American Companies can finally keep their invaluable Talent," Trump wrote on social media on Wednesday. The gold card program, which was first announced earlier this year, promises U.S. residency in "record time" and will require a $1m fee which is "evidence that the individual will substantially benefit the United States", the program's website said.
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