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The Accounting Podcast

IRS to Lay Off 50%, How Trump's Tariffs Are Working

Mar 11, 2025
Discover how accounting salaries have stagnated since 2007, leaving many professionals questioning their future. Delve into the IRS's controversial plan to cut its workforce by 50%, raising concerns about tax audits. Explore the surprising historical context of tariffs, featuring insights from Ronald Reagan, and their unexpected effects on the fentanyl trade. Lastly, learn about the legislative advancements aimed at easing CPA licensure requirements as the profession faces modern challenges in meeting investors' needs.
01:17:04
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Quick takeaways

  • The stagnation of salaries for Big Four audit associates since 2007 highlights a disconnect between accounting's value proposition and modern investor needs.
  • The IRS's planned layoffs of 50% of its workforce raise concerns about reduced audit activities on high-net-worth individuals amidst staffing shortages.

Deep dives

Economic Optimism Decline

Economic optimism among CPA decision makers has significantly declined after the election, dropping from 67% to 47%. This represents a notable 20% reduction, indicating concerns about future economic conditions among professionals in the accounting sector. The survey highlights a diminished confidence in global economic prospects, with only 29% of respondents feeling positive about international economic growth. This pessimism suggests that external political and economic events have a direct impact on the financial outlook perceived by CPAs.

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