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Trump tells CPAC his goal is a ‘lasting’ Republican majority

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President Donald Trump expressed optimism about negotiations in Congress to push forward his agenda on taxes and immigration, declaring that his party’s political movement will have lasting staying power in Washington.

Trump reprised many measures of his first month back in the White House in a speech to the Conservative Political Action Conference, telling the friendly audience he’s confident the Republican Party will beat the historical odds and avoid a voter backlash in next year’s midterm elections.

“I think we’re going to do fantastically well in the midterms.” Trump said. “We’re going to forge a new and lasting political majority that will drive American politics for generations to come.”

Trump’s remarks on Saturday wrap up another CPAC that offered rapturous support for the Republican president. Attendees over the course of this year’s three-day conference were treated to a parade of Trump allies, including members of his administration as well as foreign leaders who are in ideological lockstep with the Republican president on key issues.

Much of Trump’s agenda hinges on a spending package currently being debated by Republicans on Capitol Hill to extend his 2017 tax cuts and funnel money to immigration enforcement agencies. GOP divisions have played out in the House and Senate, with the chambers diverging on a single-bill versus a two-bill strategy.

Even as lawmakers wrangle over the approach to key measures, Trump said Senate Majority Leader John Thune and House Speaker Mike Johnson “have done a fantastic job” so far. 

Budget hawks have set out to lower spending, although proposed changes to the tax code threaten to raise the nation’s deficit. Trump criticized lawmakers who disagree with the broader party’s approach, saying “every once in a while, you have one who wants a little action.” He added: “I just hate to see it, but they’re sticking together.”

The annual CPAC gathering outside Washington draws conservatives from across the world and has been friendly turf for Trump, including in the years when he was out of the White House. In 2023, he used an appearance there to fuel his reelection bid, even as polls at the time showed many GOP voters were open to an alternative, telling attendees that “I am your retribution.” 

Last year, he spoke at the event with the Republican primary contest all but wrapped up, using his address to pivot to the general election contest.

Billionaire Elon Musk, the face of the president’s initiative to slash the federal government’s workforce and spending, appeared on Thursday wielding a chainsaw and a black cap emblazoned with Trump’s signature “Make America Great Again” slogan. 

The chainsaw was given to Musk on stage by Javier Milei, the far-right populist president of Argentina, who has become a conservative icon for his efforts to use “shock therapy” to revitalize his country’s economy. He addressed the conference Saturday, saying he wants to be first in line to sign a free-trade deal with Trump.

Another Trump ally, Steve Bannon, sparked controversy during the conference when he extended his right arm with the palm down, in a gesture that resembled the Nazi salute. While Bannon denied making a Nazi salute, it led to Jordan Bardella, the president of the French far-right National Rally party, to cancel his speech.

Italian Prime Minister Giorgia Meloni, who has sought to position herself as a key Trump conduit to European leaders, spoke to the conference via video link.

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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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