At Around the Tax World, you can find out all about what’s going on in the wonderful, worldwide world of tax. Every month, we’ll feature a few mini-articles on what’s been going on in the world when it comes to tax, and fully available for viewing even if you don’t have a subscription.
If you wish to subscribe and gain access to all articles on the site, be sure to check out the benefits of doing so here!
Check out what’s happening all around the world of tax!
In The Headlines
The robotaxis are coming: Uber cuts 10% of its workforce worldwide to focus on new investments. When the ride-sharing app first spread across the U.S., it quickly became a fierce competitor to traditional taxi companies. Now Uber is facing new competitors from food delivery services like DoorDash to self-driving robotaxis like Alphabet’s Waymo. To reduce margins, the company is planning its largest lay-offs since the COVID-19 pandemic, eliminating about 3,300 jobs. In addition to lay-offs, Uber is also requiring most employees to work from an office and allowing just 1% of its staff the option to work remotely. The workforce reduction will save the company $825 million a year, funds that are expected to be funneled toward building up a robotaxi business. After announcing the end of its partnership with Waymo earlier this year, Uber plans to launch its own robotaxi services across 15 cities including Los Angeles and San Francisco. Uber is pivoting toward Lucid electric vehicles and Rivian robotaxis to make this possible.
Will the benefits be worth the cost? Employer health care costs may spike by 11% in 2027. A recent survey predicts that health insurance benefits will see the highest increase in decades for large and small employers alike. This continues a trend that has been ongoing for almost a decade—between 2018 and 2027 health care costs are projected to see a 76% increase, about twice the rate of general inflation. Rising costs are linked to factors like increased prices for hospital care and prescription drugs, as well as cuts to government plans like Medicaid. Unfortunately, this reality has many employers weighing whether to cut benefits. Currently, about 160 million workers under age 65 rely on their employers for health insurance. As a result, the cost of health care has become a top issue for voters going into the November midterm elections. Taxpayers are already facing higher co-pays, deductibles, and premiums on top of the rising cost of everyday purchases like groceries and gasoline.
Bond prices yo-yo as investors change their minds about taking on government debt. The bond market has been making headlines in recent weeks as investors worldwide dumped their government bonds, causing prices to drop and bond yields to rise. What caused investors to sell off these bonds in the first place? Investors looked at risks like rising government debt levels, the U.S.-Iran war, and companies increasing their spending on A.I. Some analysts see the increase in available corporate bonds as a major reason for the price drop. Alphabet, Amazon, and other tech giants have issued corporate bonds to the tune of $220 billion of debt this year. Keep in mind that bond fluctuations often affect taxpayers with standard retirement accounts like 401(k) plans. Bonds typically make up a chunk of these investment portfolios because they offer balance and stability, though they also have lower returns than stocks over time. Bond yields also impact overall economic growth because they help set borrowing rates for everything from mortgages to student loans.
What's New In The Tax World?
Will Hollywood get a tax break with the support of President Trump?
The president recently advocated for bipartisan tax incentives for the film and TV industry. As costs rise domestically, more and more productions have been moving overseas. The city of Los Angeles alone has lost an estimated 45,000 film and TV jobs across the past five years. On Truth Social, Trump posted that this move is necessary to offset these losses and “save the Movie, Television, and Entertainment Business in America.” The post drew uncharacteristic support from Democrats including Governor Gavin Newsom, Senator Adam Schiff, and Representative Laura Friedman. Friedman pointed to Trump’s proposed tariffs on foreign films as evidence of the president’s support of the industry but stated that tax credits, not tariffs, were the better path.
Dubbed the “Motion Picture, Television, and Entertainment Revitalization Act,” the proposed legislation is still being drafted, but it is rumored that a 25% federal tax credit may be in the works. Countries like Australia, Canada, and the United Kingdom already offer tax incentives to draw in film productions. Marvel Studios recently left the state of Georgia to shift productions to the UK, resulting in $7.8 billion in international film and TV productions in 2025 alone. Popular titles that were shot at least partly in Britain include The Odyssey, Jurassic World Rebirth, and A Knight of the Seven Kingdoms.
A variety of Hollywood unions have spoken out in support of the bill, including the Teamsters who handle key roles on set like casting, catering, driving, training animals, and managing the location logistics. The International Alliance of Theatrical Stage Employees (IATSE), which has almost 180,000 entertainment industry members, also publicly approved the proposed tax break.
Advocates have also pushed for a federal tax credit that would “stack” on existing California state credits for the entertainment industry. The $750 million state program offers tax credits to productions that spend at least $1 million in California (per project or per TV episode). At least 75% of their production budget or filming must also occur in California. Movies and most television projects receive a 35% base credit, subject to a $5 million annual cap. TV shows that move to California receive a 40% base credit for their first season.
State-By-State Updates
Louisiana appeals to SpaceX with a $27.5 billion tax incentive package. The state offered what might be the largest subsidy on record for a single project, hoping to secure a $100 billion deal with Elon Musk’s company. If the deal succeeds, SpaceX will build its new facility in Vermilion Parish on the coast of Louisiana. The majority of the tax break comes from exempting the company from property taxes for the next 25 years. In exchange, SpaceX will pay a yearly fee of $25 million to fund the local sheriff, school district, and police. Under the deal, SpaceX would also receive state sales tax rebates to the tune of $3.6 billion over the course of 20 years. Vermilion Parish may be an ideal location for this endeavor because it provides wide-open space for launches and an abundance of natural gas. As part of this project, SpaceX intends to create 3,000 permanent jobs by 2035, though executives have indicated that that number could rise to over 10,000 jobs over time.
New Mexico will hold six property tax auctions this September. What happens when a taxpayer is unable to pay their property taxes? A tax lien may be put on the property or the property may be claimed by the government—but that doesn’t yet solve the problem of tax revenue. That’s where a property tax auction comes in. If taxes have been delinquent for at least three years, the state may sell the property or the tax lien. This month, the New Mexico Taxation and Revenue Department will host six of these live auctions in Chaves County, Curry County, De Baca County, Hidalgo County, Rio Arriba County, and Roosevelt County. If taxes and penalties are paid fully before the auction, the auction can still be canceled. Otherwise, registered participants can bid on the properties and must pay before the end of the auction.
Tennessee lawmakers look to introduce a property tax cap bill. While local property owners are appealing skyrocketing property tax bills, the state legislature has been pursuing a more permanent change. However, a recent proposal failed to get the votes it needed. The Speaker of the Tennessee House stated that it would not be long before a similar proposal appeared back on the table, likely in early 2027. The Beacon Center of Tennessee found that the state had the highest percentage increase in property tax rates of any state over the six years analyzed. Tennessee alone saw a take hike of over 75%. Beacon pointed to the fact that Tennessee is one of just four states without an official statewide property tax limit. But not all government officials are on board with a property tax cap, including Nashville Mayor Freddie O’Connell. The mayor argued that lowering tax revenue would be damaging to city services. Small municipalities do not have many sources of revenue, and some have suggested that the cap would put too permanent of a limit on their options.
Nearly 40% of Texas homesteads owe no property taxes in 2026. A new statewide analysis showed that the expansion of Texas’ homestead exemption has impacted an estimated 2.4 million homeowners. About 39% of all homesteads owe no school district property taxes, and 61% of elderly or disabled homeowners owe no taxes. Under the latest bill passed in 2025, Texas’ homestead tax exemption was increased from the first $100,000 of a home’s value to the first $140,000. Seniors and disabled taxpayers receive an additional $60,000 exemption, totaling $200,000. These exemptions apply only to school district taxes, so homeowners may still owe city, county, and other local taxes. The same bill also addressed school compressed tax rates. Texas schools are funded by a combination of local property tax revenue and other state funding. Because of this combination, lower property taxes does not necessarily mean less money for school districts.
Tax Planning Tips
The IRS provides more clarity on how “no tax on overtime” actually works
Since the tax break was introduced under the “One Big Beautiful Bill” Act (OBBBA), taxpayers have been waiting to see who actually qualifies for this tax exemption—and how much it’s worth. The IRS recently released updated its FAQs to answer these questions. Here’s the breakdown:
How much can workers deduct? The tax deduction covers up to $12,500 for single filers or $25,000 for married couples filing jointly.
What part of workers’ pay is eligible for this tax break? Under the Fair Labor Standards Act, nonexempt employees must be paid at least 1.5 times their normal pay rate for overtime—or hours worked beyond 40 hours per week. That extra “one-half” portion above the usual pay rate is the portion that is eligible for the deduction.
Are there income limits for the tax deduction? The deduction begins to phase out at $150,000 in income for single taxpayers and $300,000 for married couples.
How will taxpayers know how much they are eligible to deduct? The IRS recently added a key requirement that employers list the eligible amount of overtime pay on employees’ W-2s starting in 2026. This is expected to dramatically increase the number of taxpayers claiming the deduction.
How could the SEED Act impact tax deductions for educators?
The bipartisan Supporting Early-Childhood Educators’ Deductions (SEED) Act is nearing congressional approval. The bill has been passed in both the Senate and House but is now awaiting final action in the House. What would change if the bill is approved? Right now, many early childhood educators pay for classroom supplies out of their own pockets. When K-12 teachers pay for classroom necessities, they can deduct a portion of these expenses from their taxes. The SEED Act would make early childhood educators eligible for the same benefit, covering up to $350 for classroom supplies, educational materials, and professional development opportunities. A recent report estimates that educators spend an average of $860 of their own money each year. This includes over 90% of early childhood educators who earn a median hourly wage of $13.07 nationwide. All educators would need to itemize their deductions and must complete at least 900 hours of work during the school year to qualify.
NOT A Subscriber YET?
SUBSCRIBE TO GET ALL OF OUR
GREAT ARTICLES AND RESOURCES!
CURRENT EDITION
Will AMT Make a Comeback After OBBBA?
Following Betteridge’s Law of Headlines, the answer to the question posed in the headline is, “no.” Actually — because we’re talking about taxes here — we can say the answer is never so definitive, so let’s change it to “probably not.” But it’s more complicated than it may seem.
Why Citizenship, Residency, and Domicile Matter
If you spend any time in the world of cross-border taxes, you start to notice a pattern: the hardest problems usually begin with a deceptively simple question—who gets to tax you? And the answer is rarely as simple as “the country where I live.” That’s because tax systems don’t rely on just one concept to decide who belongs in their net. They use citizenship, residency, and domicile. These terms sound similar, and people often use them interchangeably in casual conversation, but in tax law they mean very different things. For globally mobile individuals, understanding the difference matters. You can be a U.S. citizen, a tax resident of another country, and still have your long-term home base tied to a different jurisdiction altogether. Each label can trigger different tax consequences, different filing obligations, and different planning opportunities.
Sophisticated EMR Software Meets Old-School Skimming: Lessons From The Aryanpure Case
The simplest way to reduce your taxable income from an S corporation is to take some of the gross receipts directly into your personal account without running them through the corporate books. Don’t mention this to your tax preparer and make sure they don’t find out. If you get caught by the IRS, though, hire an expert to explain why it is your preparer’s fault. This plan did not work all that well for a couple, both physicians, who were running two medical family medical clinics through an S Corporation called MedExpress. They ended up being liable for the fraud penalty which has the collateral effect of extending the statute of limitations indefinitely. At 75% the fraud penalty is as bad as it can get without losing your liberty.
