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TaxBuzz Top 5 - 2025 IRS Tax Bracket Projections, France's Macron Faces U-Turn on Tax Cuts & More

TaxBuzz Top 5 - 2025 IRS Tax Bracket Projections, France's Macron Faces U-Turn on Tax Cuts & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. 2025 IRS Tax Bracket Adjustments Predicted to Be Smallest in Three Years

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Some Americans might see smaller reductions in their federal income taxes for 2025, thanks to an annual bracket adjustment by the IRS. Although this adjustment is aimed at providing relief, it could be less substantial than in recent years.

Experts are predicting a 2.8% increase in the tax bracket thresholds for 2025, according to forecasts by Bloomberg Tax and Wolters Kluwer. This would mark the smallest adjustment in three years, following 5.4% and 7.1% hikes for the 2024 and 2023 tax years, respectively.

“The IRS adjusts a host of tax elements each year for inflation,” Jackson Hewitt’s chief tax officer Mark Steber explained to CBS MoneyWatch. These adjustments prevent “bracket creep,” which occurs when inflation pushes taxpayers into higher brackets without increasing their actual purchasing power.

The 2025 adjustment reflects the cooling of inflation, which fell to a three-year low in August 2024 after hitting a 40-year high in 2022. These projections rely on data from the chained Consumer Price Index (CPI), which is considered a more accurate reflection of consumer spending trends than the traditional CPI.

Taxpayers can expect their income thresholds for each tax bracket to rise, though the rates themselves will remain unchanged at 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

2. Deloitte Secures Firm of the Year at 2024 ITR Americas Tax Awards

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Deloitte was recognized for its market-leading services at the 2024 International Tax Review (ITR) Americas Tax Awards, winning four major honors, including the first-ever "ESG Firm of the Year" award. It was also named "Diversity Equity & Inclusion Firm of the Year", "Tax Technology Firm of the Year" for the seventh consecutive year, and "Tax Innovator of the Year" for the fourth consecutive year.

In a press release, Carin Giuliante, Chair and CEO of Deloitte Tax LLP, praised the firm's commitment to sustainability and inclusion, stating that the wins reflect the dedication of its professionals to integrating purpose into their work. Deloitte leaders Carl Obradovich and David Yaros emphasized that the firm's ongoing leadership in ESG practices is crucial for helping clients meet their sustainability goals.

The awards, which recognize innovation and excellence in tax services, further highlight Deloitte’s position as a leader in driving positive change and advancing responsible business practices globally.

3. Macron Faces U-Turn on Tax Cuts Amid France’s Growing Deficit

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In a major shift, French President Emmanuel Macron’s government is poised to reverse his hallmark policy of tax cuts for the wealthy and corporations for the first time in the administration's seven-year tenure. The French government has been grappling with a growing budget deficit; this has led Prime Minister Michel Barnier, newly appointed to tackle the country's worsening financial situation, is considering tax increases on businesses and the wealthy. This potential U-turn comes as borrowing costs for France surged to their highest since 2008, raising concerns among international investors about France's ability to manage its debt.

Macron, once praised by investors for slashing corporate taxes and curbing the national wealth tax, now faces pressure to act quickly. France’s public finances have rapidly deteriorated, leading Mr. Barnier to open the door to higher taxes, despite the president’s previous promises not to raise them. The New York Times noted that he said the national effort would focus on wealthier individuals and corporations to help rectify the budget shortfall without affecting the broader population.

This marks a dramatic departure from Macron’s pro-business agenda, which aimed to position France as a prime destination for international investment by cutting taxes and supporting growth. However, the urgency of France’s financial troubles has left the government with limited options.

4. Oregon's Measure 118 Faces Intense Criticism from Both Parties Over Corporate Tax Proposal

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Oregon’s Measure 118, set for the November ballot, proposes a 3% tax on corporate sales above $25 million, promising every Oregon resident an annual payout of $1,600. If passed, the tax would affect about 2,213 companies and go into effect next year, with payments distributed in 2026.

However, the proposal has drawn fierce opposition from both Democratic and Republican leaders, as well as from businesses and trade groups across the state. Governor Tina Kotek criticized the measure, arguing it could severely impact the state budget and undermine essential services for working families. Kotek said, “It may look good on paper, but its flawed approach would punch a huge hole in the state budget and put essential services for low-wage and working families at risk.”

Despite the backlash, the measure’s lead petitioner, Antonio Gisbert, insists it would help address inequality by taxing large corporations and redistributing the funds to benefit everyday citizens, particularly in tough economic times. “Giant corporations are not paying their fair share in taxes,” Gisbert stated. According to NBC affiliate KGW8, he believes the added income will not only support individual Oregonians but also boost the local economy as the money is spent.

5. Amazon UK Pays Corporation Tax for the First Time Since 2020 After End of Super-Deduction

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For the first time since 2020, Amazon’s primary UK division has paid corporation tax, following the expiration of a "super-deduction" tax break that allowed companies to deduct 130% of their investment spending. According to The Guardian, Amazon UK Services, which employs over half of Amazon's UK workforce, paid £18.7 million (approx. USD$25.1 million) in current taxes last year, largely attributed to corporation tax. This comes after the company received tax credits in 2021 and 2022 due to heavy investments in its infrastructure, such as robotic warehouse equipment.

The "super-deduction" scheme, introduced by former Chancellor Rishi Sunak, allowed businesses to significantly reduce their tax bills through investment. However, with the scheme’s end in 2023, Amazon’s tax burden increased as fewer deductions were available. Despite this, Amazon UK’s sales hit £27 billion in 2023, an increase from the previous year, though its tax payments remain under scrutiny compared to traditional UK retailers like Marks & Spencer.

The full UK operation paid £932 million in total taxes, up from £781 million in 2022. Amazon highlighted its contributions to business rates, corporation tax, and national insurance, while continuing to face criticism over its perceived tax advantage.

Which headline this week most interests you? Tell us in the comments!

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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