THE HOT STORY

Lawmakers pursue bipartisan proposals for paid leave and newborn tax credits

Lawmakers from both parties are pursuing proposals aimed at reducing financial pressures on American families, including expanded access to paid family leave and a new tax credit for parents of newborns. The bipartisan More Paid Leave for More Americans Act would expand paid leave through a state-driven, public-private partnership model while establishing a national framework intended to help employers administer benefits across state lines. Separately, the Supporting Newborn Parents Act of 2026 would create a tax credit of up to $2,000 for families bringing in a newborn child; supporters cite childcare costs, declining birth rates, and broader caregiving pressures. The paid leave proposal has bipartisan sponsors in both chambers, with supporters hoping Congress will revisit it during the lame-duck session after the November midterm elections, while the newborn tax credit legislation has not yet been taken up by the House.

The Hill

WORKFORCE

IRS watchdog reviews employee reassignments as agency considers extending temporary roles

The Treasury Inspector General for Tax Administration (TIGTA) is auditing the IRS’s temporary reassignment of mid-career employees, including IT and human resources staff, to entry-level taxpayer service roles following significant workforce reductions. About 1,500 employees were placed on initial 120-day details in February, often without prior experience in processing tax returns or answering taxpayer inquiries, and most later had their assignments extended for another 120 days. The IRS is now seeking volunteers for a third term, which could leave some employees away from their regular positions for nearly a year. Employees continue to receive their existing salaries despite performing work several pay grades below their original roles, while several have reported insufficient training, technical problems, limited supervisory support, and uncertainty about future positions. TIGTA is surveying affected workers as part of a broader review of IRS workforce restructuring and expects to complete its report in May 2027.

Government Executive

TECHNOLOGY

Walmart pledges digital price labels will not be used for personalized pricing

Walmart has pledged not to use its new digital shelf labels or AI shopping assistant Sparky to set prices based on customers’ personal information, shopping history, willingness to pay or the time of day, following concerns from shoppers, consumer groups and lawmakers over personalized pricing. The retailer said digital labels are already in use across 2,300 U.S. stores and are expected to be rolled out across its entire chain within the next year. Walmart said the technology allows it to update prices consistently, ensure shelf prices match those at checkout and reduce labor costs, while price changes will continue to reflect factors such as lower costs, higher product costs or transport expenses. The pledge comes after the Federal Trade Commission warned companies that personalized pricing could breach consumer protection laws and said businesses must disclose how customers’ personal information is used to determine prices.

US News and World Report

PCAOB chair: AI can automate audit tasks but cannot replace human judgment

Public Company Accounting Oversight Board (PCAOB) chair Jim Logothetis has said AI can perform transactional and technical elements of public company audits, but human auditors will remain essential for areas requiring professional skepticism, judgment, and industry knowledge. Logothetis said the accounting profession is not disappearing and could ultimately become stronger as AI adoption progresses, although firms, regulators, and lawmakers will need to navigate a transition period. He emphasized that regulators should first understand emerging technologies before introducing new requirements, favoring cost-effective regulation that considers compliance burdens while maintaining the PCAOB’s investor-protection mission. Logothetis also highlighted the growing importance of audit oversight as the market value of U.S. public companies has increased from $11tn in 2001 to $75tn today, arguing that the PCAOB can continue supporting confidence and growth in U.S. capital markets.

Accounting Today

CYBERSECURITY

‘Dozens’ of organizations hacked by OpenAI agents

OpenAI has said that its AI systems may have interfered with the external websites of “dozens of third parties,” including those belonging to government bodies, public agencies, and universities, during routine testing evaluations. According to the company, its AI models bypassed digital security barriers, disrupted website accessibility, or negatively affected services while conducting testing routines. “Some of the websites involved are operated by governments, universities, public agencies, and other institutions. That is partly because models performing research tasks are often directed toward authoritative sources of public information,” OpenAI wrote in a blog post.

Financial Times

Deutsche Welle

BBC News

TAX

Washington unions spend millions to defend high-earner income tax

Washington public-sector unions are contributing millions of dollars to oppose Initiative 645, a November ballot measure that would repeal the state’s new 9.9% tax on annual income above $1m. The No on 645 campaign has raised $7.8m, including $3m from the Washington Education Association, nearly $2m from SEIU 775, and $1m from the Washington Federation of State Employees, while the campaign supporting repeal has raised $1.3m. The tax is expected to begin applying in 2028, with collections starting in 2029, and is projected to generate more than $3bn annually. Supporters argue the revenue will protect education, health care, and other public services, while opponents contend the tax could undermine Washington’s competitiveness and worry that income taxation could eventually extend to more residents.

CPA Practice Advisor

ECONOMY

Consumer sentiment falls to four-month low as inflation concerns grow

U.S. consumer sentiment fell to a four-month low in September as households grew more concerned about rising prices and the economic outlook. The University of Michigan’s final sentiment index declined to 48.1, while consumers’ one-year inflation expectations increased to 4.6% from 4% in August, and expectations for inflation over the next five to 10 years rose to 3.4%, the highest since May. The survey’s measure of the economic outlook for the coming year dropped to its lowest level since 2022, while expectations for personal finances also deteriorated. Sentiment has declined since the beginning of the year across demographic, geographic, political, and income groups. Buying conditions for durable goods improved slightly, partly because consumers believe making purchases now could help them avoid higher prices in the future.

CNN

Bloomberg

INTERNATIONAL

First Nations workers in Australia paid 16% less per hour

The University of Technology Sydney's Centre for Indigenous People and Work and Indigenous Business Australia has released a report which indicates that Indigenous workers in Australia earn 16% less per hour than their non-Indigenous counterparts. The report attributes the disparity to systemic issues, and estimates that the pay gap could result in $170bn in lost income by 2050. It made a number of recommendations to create fairer pay and employment structures, including the placing of a positive duty on employers to prevent racial discrimination, in the same way they must prevent sex discrimination. Other recommendations in the report include improving Indigenous employment data collection, and for cultural skills to be valued properly when wages are set.

ABC Online

Mercedes-Benz warns of potential plant closures

Mercedes-Benz could close facilities and make redundancies, including the engine and powertrain facilities at its Untertürkheim plant in Stuttgart where the company has its headquarters. Michael Schiebe, the carmaker's production head, said operations in Germany were not competitive by international standards because of high labor costs. Schiebe told workers: "Our clear goal is to maintain all of our German locations. If we are unable to do this, we will have to close one German assembly plant and one German powertrain plant." An official in the general works council said: "Threatening plant closures is no way to shape the future. Anyone who resorts to such threats must expect our determined resistance. If the management board believes it can pressure employees with the ultimatum of [workforce] concessions or plant closures, our answer is a clear: 'Not on our watch'." The company said in a statement: "We need framework conditions that boost productivity in Germany."

Reuters

The Times

Swire Coca-Cola deploys AI-powered robots as it expands Chinese supply chain

Swire Coca-Cola has introduced an AI-powered robotic order-picking system at its Zhengzhou factory in China as it seeks to build a more flexible supply chain capable of meeting increasingly diverse consumer demand. The company has invested 900m yuan ($134.3m) in the facility, where three sets of robots developed by Seth Robotics can identify products from live orders, calculate efficient warehouse routes, and handle heavy-duty picking. Swire Coca-Cola plans to deploy the technology at other Chinese factories next year before potentially expanding it into overseas markets, as changing consumer habits and the growth of channels including convenience stores, vending coolers and snack stores increase supply-chain complexity. Mainland China is Swire Coca-Cola’s largest market, alongside operations in Hong Kong, Taiwan, Vietnam, Cambodia, Laos, and Thailand.

South China Morning Post

OTHER

Direct-to-consumer brands drive down caviar prices and broaden its appeal

Caviar is becoming more affordable and accessible as a new generation of direct-to-consumer brands targets younger consumers with lower prices, colorful branding and promotions, challenging established luxury suppliers. Increased supply from farmed sturgeon, particularly in China, has helped bring down prices, with brands such as Quince selling 100g of Osetra for $125 compared with $495 for 125g at luxury retailer Caviar Russe. The shift is broadening caviar’s customer base, particularly among millennial women, although industry figures have raised concerns over quality, sourcing transparency and whether heavy discounting risks undermining the product’s traditional luxury positioning.

Wall Street Journal

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