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Trump defends economic agenda, says tariffs will fuel growth

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Former President Donald Trump said his policies would inspire growth despite adding to the debt as he sought to assuage business leaders who worry his economic plans will fuel inflation.

“We’re all about growth,” Trump told Bloomberg News Editor-in-Chief John Micklethwait on Tuesday in an interview at the Economic Club of Chicago. “We’re going to bring companies back to our country.”

Trump defended his proposals to dramatically increase tariffs on foreign goods, saying the proposals were for the “protection of the companies that we have here and the new companies that will move in.”

Donald Trump during an interview with Bloomberg News at the Economic Club of Chicago
Donald Trump during an interview with Bloomberg News at the Economic Club of Chicago

Christopher Dilts/Bloomberg

The Republican presidential nominee disputed the notion his tariffs would impact Americans whose jobs depend on trade, saying the losses would be offset by new domestic manufacturing jobs.

“It should have a massive effect, positive effect,” Trump said, arguing that new trade levies would pressure companies to reshore manufacturing in the U.S. “The higher the tariff, the more likely it is that the company will come into the United States, and build a factory in the United States so it doesn’t have to pay the tariff.”

The Republican presidential nominee’s comments come exactly three weeks before Election Day in what polls forecast to be a razor-thin contest with Democratic Vice President Harris. Surveys show the U.S. economy is the paramount issue for voters.

Trump in his third run for the White House has been bolstered by broad discontent among business executives and voters at large over President Joe Biden’s record. Anxiety over high prices and jobs have left the American public preferring the Republican candidate’s approach to that of Harris, polls suggest.

The former president has vowed to carry out an aggressive campaign of deregulation, renew expiring tax cuts, lower the corporate tax rate to 15% from 21%, and offer fresh tax reductions and benefits to bolster domestic manufacturing — policies cheered by prominent Wall Street and corporate leaders. 

Trump’s tax proposals, as well as dueling tax cuts and benefits pitched by Harris, though, come with stark price tags — in the trillions — and threaten to worsen a U.S. federal deficit that’s already historically large. Some investors are betting Trump’s policies will leave the U.S. saddled with more debt and higher inflation and interest rates. America’s annual deficit is already close to $2 trillion.

Defending tariffs

Trump’s economic plan is heavy on tariffs, which he aims to impose on both U.S. allies and adversaries, including a 60% levy on imports from China and 10% duties on the rest of the world. Trump has also insisted new tariffs will help fund his tax cuts, but economists say they are unlikely to create the revenue he needs. The Peterson Institute for International Economics estimates the tariffs could raise over $200 billion a year. The U.S. took in an estimated $4.9 trillion in revenue in fiscal 2024.

The former president’s tariff agenda threatens to also reduce or redirect trade flows, further impacting revenue. Many economists have warned tariffs would hit U.S. households with what is effectively a tax increase, likely sending inflation higher and raising pressure on the Federal Reserve over interest rates.

Trump also reiterated his pledge to block the sale of US Steel Corp. to Nippon Steel Corp., if the $14.1 billion transaction was concluded by the time he entered office.

“I think it sets a horrible tone,” he said of the possible sale, saying that steel was a critical national security interest.

“There are certain companies you have to have,” Trump said.

Both Biden and Harris have said they oppose the sale of US Steel to Nippon Steel, an election flashpoint, particularly in swing-state Pennsylvania, where both the American company and the United Steelworkers union — which also opposes the deal — are based.

Trump-Putin relationship

Trump declined to say if he had spoken to Russian President Vladimir Putin since leaving office in 2021, responding to a question about claims laid out in a new book by journalist Bob Woodward.

“Well, I don’t comment on that, but I will tell you that if I did, it’s a smart thing,” Trump said. “If I’m friendly with people, if I have a relationship with people, that’s a good thing, not a bad thing. “

Woodward’s book cites an unnamed aide to the former president indicating that he spoke to Putin as many as seven times since leaving office. The Trump campaign has called Woodward’s claim “made-up stories.”

Trump defended their relationship, saying their positive ties were a boon to the U.S. and that he had cultivated connections with the Russian leader even though he had sanctioned the Nord Stream 2 pipeline between Russia and Europe.

Tight race

Trump and Harris in recent weeks have been ramping up their messaging on the economy — in particular in the seven battleground states likely to determine November’s election outcome. Harris’ entry into the race in July saw her erase much of the lead Trump held when Biden was atop the Democratic ticket, thanks to a surge in party enthusiasm for a new standard-bearer. 

But despite a fundraising advantage for Harris that has allowed her to flood the airwaves with advertising and her strong debate performance against Trump, polls show the race tightening again in the final stretch.

The 2024 race has seen Trump solidify his hold on the Republican party, easily vanquishing his primary opponents despite a slew of legal obstacles that include him being the first former US president convicted of a felony. 

With his base assured, Trump has sought to bolster his electoral appeal, reaching out to core Democratic constituencies such as Black voters and Hispanics — as well as working-class voters and suburban women — uneasy about economic mobility.

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House passes tax administration bills

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The House unanimously passed four bipartisan bills Tuesday concerning taxes and the Internal Revenue Service that were all endorsed this week by the American Institute of CPAs, and passed two others as well.

  • H.R. 1152, the Electronic Filing and Payment Fairness Act, sponsored by Rep. Darin LaHood, R-Illinois, Suzan Delbene, D-Washington, Randy Feenstra, R-Iowa, Brad Schneider, D-Illinois, Brian Fitzpatrick, R-Pennsylvania and Jimmy Panetta, D-California. The bill would apply the “mailbox rule” to electronically submitted tax returns and payments to allow the IRS to record payments and documents submitted to the IRS electronically on the day the payments or documents are submitted instead of when they are received or reviewed at a later date. The AICPA believes this would offer clarity and simplification to the payment and document submission process while protecting taxpayers from undue penalties.
  • H.R. 998, the Internal Revenue Service Math and Taxpayer Help Act, sponsored by Rep. Randy Feenstra, R-Iowa, and Brad Schneider, D-Illinois, which would require notices describing a mathematical or clerical error to be made in plain language, and require the Treasury to provide additional procedures for requesting an abatement of a math or clerical error adjustment, including by telephone or in person, among other provisions.
  • H.R. 517, the Filing Relief for Natural Disasters Act, sponsored by Rep. David Kustoff, R-Tennessee, and Judy Chu, D-California. The process of receiving tax relief from the IRS following a natural disaster typically must follow a federal disaster declaration, which can often come weeks after a state disaster declaration. The bill would provide the IRS with authority to grant tax relief once the governor of a state declares either a disaster or a state of emergency and expand the mandatory federal filing extension under Section 7508(d) of the Tax Code from 60 days to 120 days, providing taxpayers with more time to file tax returns after a disaster.
  • H.R. 1491, the Disaster related Extension of Deadlines Act, sponsored by Rep. Gregory Murphy, R-North Carolina, and Jimmy Panetta, D-California, would extend the amount of time disaster victims would have to file for a tax refund or credit (i.e., the lookback period) by the amount of time afforded pursuant to a disaster relief postponement period for taxpayers affected by major disasters. This legislative solution would place taxpayers on equal footing as taxpayers not impacted by major disasters and would afford greater clarity and certainty to taxpayers and tax practitioners regarding this lookback period.

“The AICPA has long supported these proposals and will continue to work to advance comprehensive legislation that enhances IRS operations and improves the taxpayer experience,” said Melanie Lauridsen, vice president of tax policy and advocacy for the AICPA, in a statement Tuesday. “We are pleased to work closely with each of these Representatives on common-sense reforms that will benefit taxpayers, tax practitioners and tax administration and we’re encouraged by their passage in the House. We look forward to continuing to work with Congress to improve the taxpayer experience.”

The bills were also included in a recent Senate discussion draft aimed at improving tax administration at the IRS that are strongly supported by the AICPA.

The House also passed two other tax-related bills Tuesday that weren’t endorsed in the recent AICPA letter. 

  • H.R. 1155, Recovery of Stolen Checks Act, sponsored by Rep. Nicole Malliotakis, R-New York, would require the IRS to create a process for taxpayers to request a replacement via direct deposit for a stolen paper check. If a check is determined to be stolen or lost, and not cashed, a taxpayer will receive a replacement check once the original check is cancelled, but many taxpayers are having their replacement checks stolen as well. Taxpayers who have a check stolen are then unable to request that the replacement check be sent via direct deposit. The bill would require the Treasury to establish processes and procedures under which taxpayers, who are otherwise eligible to receive an amount by paper check in replacement of a lost or stolen paper check, may elect to receive such amount by direct deposit.
  • H.R. 997, National Taxpayer Advocate Enhancement Act, sponsored by Rep. Randy Feenstra, R-Iowa, would prevent IRS interference with National Taxpayer Advocate personnel by granting the NTA responsibility for its attorneys. In advocating for taxpayer rights, the National Taxpayer Advocate often requires independent legal advice. But currently, the staff members hired by the National Taxpayer Advocate are accountable to internal IRS counsel, not the Taxpayer Advocate, creating a potential conflict of interest to the detriment of taxpayers. The bill would authorize the National Taxpayer Advocate to hire attorneys who report directly to her, helping establish independence from the IRS. 

House  Ways and Means Committee Chairman Jason Smith, R-Missouri, applauded the bipartisan House passage of the various bills, which had been unanimously passed by the committee.

“President Trump was elected on the promise of finally making the government work better for working people,” Smith said in a statement Tuesday. “This bipartisan legislation helps fulfill that mandate and makes improvements to tax administration that will make it easier for the American people to file their taxes. Those who are rebuilding after a natural disaster particularly need help filing taxes, which is why this set of bills lightens the load for taxpayers in communities struck by a hurricane, tornado or some other disaster. With Tax Day just a few days away, we must look for common-sense, bipartisan ways to make filing taxes less of a hassle.”

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Accounting

In the blogs: Many hats

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Teaching fraud; easement settlement offers; new blog on the block; and other highlights from our favorite tax bloggers.

Many hats

  • Taxbuzz (https://www.taxbuzz.com/blog): There’s sure an “I” in this “teamwork:” What to know about potential IRS and ICE collaboration.
  • Tax Vox (https://www.taxpolicycenter.org/taxvox): How IRS data would likely be unhelpful validating SNAP eligibility.
  • Yeo & Yeo (https://www.yeoandyeo.com/resources): How financial benchmarking (including involving taxes) can help business clients see trends, pinpoint areas for improvement and forecast future performance.
  • Integritas3 (https://www.integritas3.com/blog): One way to take a bite out of crime, according to this instructor blogger: Teach grad students how to detect, investigate and prevent financial fraud.
  • HBK (https://hbkcpa.com/insights/): Verifying income, fairly distributing property, digging the soon-to-be-ex’s assets out of the back of the dark, dark closet: How forensic accounting has emerged as a crucial element in divorces.

Standing out

Genuine intelligence

  • AICPA & CIMA Insights (https://www.aicpa-cima.com/blog): How artificial intelligence and other tech is “Reshaping Finance,” according to this podcast. Didem Un Ates, CEO of a U.K.-based company offering AI advisory services, tackles the topic.
  • Taxjar (https:/www.taxjar.com/resources/blog): How AI and automation can help even the knottiest sales tax obligations and problems.
  • Dean Dorton (https://deandorton.com/insights/): Favorite opening of the week: “The madness doesn’t just happen on college basketball courts — it also happens when your finance team is stuck using a legacy on-premises accounting system.”
  • Canopy (https://www.getcanopy.com/blog): Top client portals for accounting firms in 2025.
  • Mauled Again (https://mauledagain.blogspot.com/): Despite what Facebook claims, dependents have to be human.

New to us

  • Berkowitz Pollack Brant (https://www.bpbcpa.com/articles-press-releases/): This Florida firm offers a variety of services to many industries and has a good, wide-ranging blog. Recent topics include the BE-10, nexus and state and local tax obligations, IRS cuts and what to know about the possible bonus depreciation phase out. Welcome!

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Accounting

Is gen AI really a SOX gamechanger?

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By streamlining tasks such as risk assessment, control testing, and reporting, gen AI has the potential to increase efficiency across the entire SOX lifecycle.

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