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Tariffs will hit low-income Americans harder than richest, report says

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President Donald Trump’s tariffs would effectively cause a tax increase for low-income families that is more than three times higher than what wealthier Americans would pay, according to an analysis from the Institute on Taxation and Economic Policy.

The report from the progressive think tank outlined the outcomes for Americans of all backgrounds if the tariffs currently in effect remain in place next year. Those making $28,600 or less would have to spend 6.2% more of their income due to higher prices, while the richest Americans with income of at least $914,900 are expected to spend 1.7% more. Middle-income families making between $55,100 and $94,100 would pay 5% more of their earnings. 

Trump has imposed the steepest U.S. duties in more than a century, including a 145% tariff on many products from China, a 25% rate on most imports from Canada and Mexico, duties on some sectors such as steel and aluminum and a baseline 10% tariff on the rest of the country’s trading partners. He suspended higher, customized tariffs on most countries for 90 days.

Economists have warned that costs from tariff increases would ultimately be passed on to U.S. consumers. And while prices will rise for everyone, lower-income families are expected to lose a larger portion of their budgets because they tend to spend more of their earnings on goods, including food and other necessities, compared to wealthier individuals.

Food prices could rise by 2.6% in the short run due to tariffs, according to an estimate from the Yale Budget Lab. Among all goods impacted, consumers are expected to face the steepest price hikes for clothing at 64%, the report showed. 

The Yale Budget Lab projected that the tariffs would result in a loss of $4,700 a year on average for American households.

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Accounting

Mauldin & Jenkins merges in Bradshaw, Gordon & Clinkscales

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Mauldin & Jenkins, a Top 75 Firm based in Atlanta, is expanding into Greenville, South Carolina by adding Bradshaw, Gordon & Clinkscales, LLC, effective June 1, 2025.

The merger adds seven new partners and 42 professionals to M&J, which already has 76 partners and 510 professionals. Financial terms of the deal were not disclosed. M&J ranked No. 65 on Accounting Today‘s 2025 list of the Top 100 Firms, with $11.7 million in annual revenue. 

“This strategic partnership aligns with our mission to offer comprehensive accounting and advisory solutions to clients while expanding our footprint in key markets,” said Mauldin & Jenkins managing partner Hanson Borders in a statement Thursday. “We are excited to welcome the professionals of BGC to our firm and look forward to building on their legacy of excellence in the Greenville community.”

BGC offers audit, tax and business advisory services to clients and dates back over 40 years. “We are thrilled to join forces with a firm that shares our commitment to client service, integrity and long-term relationships,” said BGC managing partner Peter Tiffany in a statement. “This merger represents a strong cultural fit and an exciting opportunity to expand our capabilities while continuing to put our clients’ needs at the forefront of everything we do.” 

Last year, M&J added CFO Navigator, a firm that offers financial guidance to businesses and nonprofit organizations in the Atlanta area. In 2021, M&J expanded in Alabama by adding CDPA PC, a firm with offices in Athens, Florence and Huntsville, effective July 1. In 2020, M&J expanded to Sarasota, Florida, by acquiring Plush Smith. It acquired another firm in Florida, Jon Campbell & Associates, in 2019.

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Accounting

Armanino expands into Utah with Cooper Savas merger

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Top 25 Firm Armanino has entered the Utah market for the first time by adding Cooper Savas LLC, a CPA firm based in Salt Lake City.

The merger is the second since Armanino took on a minority investment from a private equity firm last fall, in part to gain access to capital to fuel its aggressive M&A strategy, which has seen the firm finalize 20 combinations since 2019.

The terms of the deal were not disclosed, but Cooper Savas bring seven partners and 35 professionals to Armanino, which ranked No. 18 on Accounting Today‘s 2025 list of the Top 100 Firms, with $716 million in revenue, 262 partners and over 2,700 staff.

“Cooper Savas is an exemplary firm that shows how focusing on culture, talent development and quality service can build a highly successful practice,” said Matt Armanino, CEO of Armanino Advisory LLC, in a statement. “We want the best of the best to join Armanino, and Cooper Savas is a firm that exemplifies that. Their addition to the firm brings incredible talent and exciting opportunities to deliver more for their client base as we expand our national footprint.”​

Matt Armanino
Matt Armanino

Robert Mooring

Founded in 2011, Cooper Savas offers traditional tax, assurance and accounting services, and gives Armanino its first office in Salt Lake City and an entrée to the Utah market.

“Since our founding, we’ve prided ourselves on our ability to deliver a hands-on, thoughtful approach to clients, and we know that Armanino maintains that shared culture and commitment, making this a great opportunity for our firm,” said Phil Cooper, partner and founder of Cooper Savas, in a statement. “Now we have access to Armanino’s extensive resources and innovative solutions, ensuring that clients can receive end-to-end support for their needs. We’re truly excited for what this partnership unlocks for our firm, our people and our clients.”​

Following its October 2024 deal with PE firm Further Global Capital Management, Armanino adopted an alternative practice structure. As a result, Cooper Savas’ non-attest assets will be acquired by Armanino Advisory LLC, and the firm’s attest services will be acquired by Armanino LLP.

In February of this year, Armanino acquired Boca Raton, Florida-based ERP and technology consulting firm Complete Business Solutions. In 2023, it acquired New York-based Janover; Bemel, Ross & Avedon LLP, a Los Angeles-based business management firm; and two entertainment-oriented firms, Royalty Compliance Organization, a music rights and royalty auditing firm in St. Louis, and Blue Sky Group, a music business management team in Nashville. In 2022, it merged in Philadelphia-based Drucker & Scaccetti.

(Listen: Inside Armanino’s success.”)

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Accounting

IRS can only give tax data to ICE in deportation, criminal cases

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The IRS can share taxpayer data with federal immigration officials only in cases involving immigrants with final deportation orders or ongoing criminal investigations, according to a newly unsealed agreement between the Treasury and Homeland Security departments.

The 13-page memo, signed in April by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, was released Tuesday by order of a federal court in Washington. It permits Immigration and Customs Enforcement to request tax records under a section of the tax code that allows limited disclosures for non-tax criminal matters.

While the memo doesn’t specify what criminal cases may qualify, it does specify other rules. To obtain IRS data, ICE must provide a name, address, and deportation order date, and it’s required to safeguard any information received. 

By agreeing to share taxpayer data at all, the IRS is taking an unprecedented step that breaks with longstanding assurances that such information wouldn’t be used to aid in immigration enforcement. Melanie Krause resigned as the acting IRS commissioner last month as the data-sharing arrangement was finalized.

A federal judge on Monday ordered the mostly redacted IRS-ICE agreement to be “almost entirely unsealed” in response to a request from the watchdog group American Oversight. In the same ruling, the judge denied a request from two Chicago-based immigrant advocacy groups to block the data-sharing arrangement, saying they lacked standing to challenge it. 

Immigrants have for decades been encouraged to pay income taxes regardless of their status. In 1996, the IRS created an individual taxpayer identification number for foreigners who don’t qualify for a Social Security number, allowing them to file returns. 

The Trump administration, as part of a broader effort to kick start its promised mass deportation effort, has reinstituted a World War II-era immigrant-registration system and has vowed to fine and criminally charge those in the US without permission who fail to register.

The White House has argued that the data is necessary to help ICE agents confirm the ongoing presence of specific foreigners living in the US illegally. A DHS spokeswoman has repeatedly defended the arrangement, arguing that the administration is using all available tools to help find immigrants in the county without permission.

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