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Trump excludes Asian, European cars from vehicle tax-break plan

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Donald Trump touted his pledge to provide tax breaks for purchasing cars, highlighting that the benefit would only apply to vehicles made in the U.S. as he rallied voters in a crucial swing state with just two weeks until Election Day.

“I don’t want it to benefit other countries. I want it to benefit us,” Trump said Tuesday at a rally in Greensboro, North Carolina. “Deductibility of interest is great, but only if the car is manufactured in the United States.”

Trump has increased his focus on U.S. automakers in recent weeks as he’s sought to assuage voter concerns about domestic manufacturing jobs, repeatedly pledging to restore industries that have closed factories as supply chains have shifted overseas. Trump said his plan to allow car buyers to write-off the loan interest on their federal taxes would be a boon to U.S. car sales.

“Why the hell would we give them taxes if they manufacture the car in China, Japan or lots of other places that stole our business over the years?” Trump said. “I think that’s going to be great for Detroit,” he added, referring to the U.S. auto manufacturing hub, located in battleground Michigan.

Trump didn’t specify if the tax breaks would be available to many foreign-owned carmakers who produce millions of vehicles in the U.S., including Volkswagen AG, Toyota Motor Corp. and Hyundai Motor Co.

Trump on Tuesday mused about what he called the “glory days” of American car manufacturing, saying his father — who was born in 1905 — considered the “definition of luxury” to be buying a new Cadillac every two years.

In addition to tax breaks for car buyers, Trump has pledged to impose steep tariffs on cars and other products made in Mexico, China and other countries. Economists have warned that could cause household prices to spike and serve as a drag on economic growth.

Trump’s focus on manufacturing jobs comes as he and his Democratic rival Vice President Kamala Harris are in a tight race in the seven battleground states, with the former president ahead by 1.1 percentage points in the RealClearPolitics average of polls. 

The United Auto Workers endorsed Harris for president, but Trump has made inroads with rank-and-file union members, a potentially decisive voting bloc in the “Blue Wall” states of Michigan, Wisconsin and Pennsylvania.

Swing states

Trump has spent the better part of the past two days in North Carolina, and both campaigns have been targeting voters in the state with early voting already underway. The State Board of Elections said that more than 1 million voters had already cast ballots as of Sunday at 4 p.m.

Trump carried the state in both of his past two presidential runs but only narrowly against President Joe Biden in 2020, spurring Democratic hopes of taking the state. 

North Carolina is still recovering from Hurricane Helene, which hit the U.S, southeast, subsuming the state with historic levels of flooding in late September and early October and devastating communities in its path.

Nearly 1.3 million registered voters live in North Carolina counties in the designated Helene disaster area and the state has implemented emergency measures for those displaced by the storm to make it easier to vote, including allowing voters to have absentee ballots sent to them in temporary housing and to cast their ballots at any voting site around the state. 

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Accounting

On the move: HCVT hired CAS co-leader

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Grant Thornton names new CFO; CTCPA installs board of directors; and more news from across the profession.

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Accounting

Tech news: Karbon Practice Management evolves into Practice Intelligence

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Automation platform Quadient announced the acquisition of Serensia, a French electronic invoicing platform provider accredited by the French government as a Partner Dematerialization Platform (PDP). With ownership of a Peppol access point—a secure gateway for document exchange—Quadient can now offer a compliant, end-to-end e-invoicing solution to the millions of companies across Europe that will be required to transition to electronic invoicing under upcoming regulatory mandates. … Accounting solutions provider Sage announced a partnership with CPA.com which licenses select AICPA resources to train Sage Copilot, its generative AI assistant designed to support accountants and finance teams with authoritative, context-aware guidance. The announcement was made at Sage Future, the company’s flagship global customer event, held this week in Atlanta. … Small business accounting platform Xero announced that users who have an account with payments company Stripe can now use Tap To Pay on iPhone, enabling Xero customers in the US with a Stripe account to seamlessly and securely accept in-person contactless payments with their iPhone and the Xero Accounting app — no additional hardware or payment terminal needed. Tap to Pay on iPhone enables businesses to accept all forms of contactless payments, including contactless credit and debit cards, Apple Pay, and other digital wallets. … Trust and security compliance automation solutions provider Scytale announced the acquisition of AudITech, a provider of Sarbanes Oxley (SOX) IT General Controls (ITGC) automation solutions, which integrates with a company’s IT General Control system and audits all controls and populations daily. This acquisition will enable Scytale to offer security, privacy, and AI compliance automation for standards like SOC 2, ISO 27001, and now SOX ITGC in one platform. … Business aviation solutions provider MySky is acquiring the State Tax Guide from Jet Support Services Inc (JSSI), significantly expanding the capabilities of its MySky Tax solution. This acquisition offers users comprehensive, accurate, and up-to-date U.S. state aviation tax information, which will soon be seamlessly embedded within the platform. … Accounting firm-focused payments solutions provider CPACharge announced a new partnership with SafeSend, part of Thomson Reuters. This new partnership will make it easier for tax and accounting firms to get paid as clients receive their tax returns, as well as allows firms to embed CPACharge directly into the workflow for SafeSend One, SafeSend’s flagship product.

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Trump said to be open to lowering SALT cap in GOP tax bill

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President Donald Trump told Senate Republicans he is open to a state and local tax deduction cap lower than the $40,000 in the House-passed version of his giant tax bill, a person familiar with the matter said. 

Trump signaled his position in a meeting with Senate Finance Committee Republicans on Wednesday, and the comments added momentum to Senate GOP efforts to enact a lower SALT cap. 

That push has led to resistance from the House, with Speaker Mike Johnson telling Bloomberg TV Thursday he is fighting to keep the $40,000 cap as it is. 

After the White House meeting Wednesday, Senate Finance Committee Chair Mike Crapo lamented about the cost of the House bill’s SALT cap. 

“There’s not a single Republican senator from New York, New Jersey or California, so there’s not a strong sentiment in the Republican conference to do $350 billion for states that the other states subsidize,” Crapo told reporters.   

Crapo’s top priority for the Senate tax bill is extending a bevy of temporary business tax breaks in the House bill that would expire after 2029, including enhanced interest expensing and deductions on research, development and equipment. Crapo is looking to trim other aspects of the House bill in order to offset the added cost of making those breaks permanent. 

He said that a decision had not yet been made on whether to lower the SALT cap or to what level. Under current law, individuals and couples can deduct $10,000 in state and local taxes if they itemize on their tax returns. 

Johnson said that the higher cap is crucial for the House to be able to pass the final version of the tax bill when it is sent back from the Senate later in the summer. He said he has made that clear to the Senate GOP.

“I told my friends I am crossing the Grand Canyon on a piece of dental floss,” he said.

The Washington Post first reported Trump’s openness to a smaller cap. 

“The White House is working closely with leaders in Congress to ensure that this landmark legislation gets over the finish line,” said spokesperson Kush Desai.

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