Talking Tax

Lauren Vella, a Bloomberg tax reporter specializing in international tax developments, delves into the recent G7 agreement altering the global minimum tax. She explains the significance of the U.S. exemptions and the complexities this introduces. The podcast also discusses Canada's repeal of its digital services tax to rekindle trade talks with the U.S. Vella highlights the backlash from other nations feeling pressured to comply with U.S. changes and the broader implications for global tax reform in a shifting political landscape.

In this discussion, Christina Ho, a PCAOB board member, shares her insights from her tenure at the Treasury and supports SEC oversight for auditors. Joining her are whistleblowers Cynthia Cooper and Sherron Watkins, who gained fame for exposing corruption at WorldCom and Enron, respectively. They debate the crucial role of the PCAOB and warn against legislative efforts to dissolve it. The trio emphasizes audit independence, the significance of strong oversight, and the lessons learned from corporate scandals, while navigating ongoing regulatory challenges.

The Republican-led Senate Finance Committee unveiled its portion of the mammoth tax-and-spending legislation that's quickly moving through Congress, and there's a lot to unpack. The Senate bill has dozens of differences from the House version. It makes several business breaks permanent, softens the excise tax on university endowments, and phases out more slowly cuts to clean energy credits, while smoothing edges on the so-called "revenge tax." But there are many similarities in the approaches the two bills take—both have tax breaks on income such as tips and overtime sought by President Donald Trump, and seek to extend much of the 2017 GOP tax law. Things are moving quickly as the Senate aims to pass its version out of its chamber before the July 4 break. In this week's episode of Talking Tax, Bloomberg Tax reporter Chris Cioffi speaks with host David Schultz on what's in the bill, what's left out, and where Congress goes from here. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Namaan Mian, Chief Operating Officer at Management Consulted, discusses the recent wave of layoffs at Big Four accounting firms amidst economic uncertainty. He highlights the vital need for new graduates to develop tech and communication skills to remain competitive. Mian emphasizes the challenges of recruiting in a tightened job market and the rise of AI's role in the industry. Additionally, he sheds light on how accounting education must adapt to equip students for these shifting demands, while also exploring potential opportunities in smaller firms.

In this discussion, Bloomberg Tax senior reporter Michael Rapoport brings insights into the controversial Section 899, also known as the 'revenge tax.' He explores how this proposed tax could impose harsh rates on countries the US considers unfair in their taxing practices. Concerns arise over potential job losses and diminished foreign investment in the US economy. Rapoport also highlights how this measure might tarnish the US's reputation as a business-friendly environment while stirring up debates over its diplomatic implications.

Lauren Vella, a tax policy and legislation reporter at Bloomberg Tax, dives into the implications of a recent House-passed tax bill. She discusses how it preserves current tax rates on foreign-earned income, originally shaped by the 2017 Tax Cuts and Jobs Act. Vella highlights the mixed reactions from businesses and the potential changes anticipated in the Senate, particularly regarding GILTI and other international provisions. The conversation also touches on how these tax adjustments could affect U.S. relations globally and the implications of the Byrd Rule.

House Republicans are moving quickly to get a massive tax-and-spending package across the finish line before week's end even as they negotiate with party factions over outstanding concerns. Some Republicans are demanding deeper cuts to social programs like Medicaid to curb deficits as part of the deal and to reduce the package's cost to extend the 2017 tax overhaul. And yet the bill increases the debt limit by $4 trillion and adds billions in spending. Cut out of the process, Democrats oppose the proposal, and even some Republicans have objected to its size and scope. Regardless of where lawmakers fall on the political spectrum, they all seem to agree on one data source: What the Committee for a Responsible Federal Budget has to say about the package and what it will do to the national deficit, which now stands at over $36 trillion. On this episode of Talking Tax, Bloomberg Tax reporter Chris Cioffi talks with Maya MacGuineas, longtime president of the nonprofit public policy group, and digs into why the growing debt can be problematic for future economic growth. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.

Caroline Ciraolo, a partner at Kostelanetz and former No. 2 at the DOJ Tax Division, dives into the shift from government to private sector tax work. She discusses a new initiative connecting laid-off IRS professionals to law firms, emphasizing the passion and transferable skills that benefit both sides. Ciraolo shares insights on navigating career transitions, the importance of effectively highlighting IRS experience on resumes, and encourages future tax professionals by showcasing the enduring demand in the field despite challenges.

The IRS is facing significant upheaval as over 20% of its workforce exits, raising concerns about taxpayer services and data security. With a high turnover rate, leadership changes are reshaping the agency, particularly affecting its ability to regulate digital assets. The departures of key executives complicate efforts to maintain compliance and stability. As the IRS leans more on technology to fill gaps, the implications for individual taxpayers and overall revenue collection loom large. Listen for insights into this turbulent period for the agency.

House Republicans are pushing a plan to dismantle the US audit board and send its watchdog duties to the Securities and Exchange Commission as part of a federal budget-cutting process. It's not the first GOP attempt to rein in the Public Company Accounting Oversight Board, but this time it comes against the backdrop of the Trump administration's sweeping drive to cut regulations and downsize government. Congress set up the board in the early 2000s to restore investor trust following high-profile corporate accounting scandals at Enron Corp. and WorldCom Inc. The move to eliminate PCAOB threatens to derail independent oversight of auditors charged with vetting the financial reports of public companies worth trillions in stock value, according to Bloomberg Tax senior reporter Amanda Iacone. On this episode of Talking Tax, Iacone speaks with Benjamin Freed, Bloomberg Tax team lead for state tax and financial accounting, about why the PCAOB is being targeted now, previous attempts to curb its influence, and what a potential disbanding could mean for audit firms. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.