The dust still hasn’t settled around Trump’s sweeping tax-and-spend legislation—and the headlines this week reflect the ongoing fallout. From IRS leadership turmoil to new tax breaks reshaping tech hiring and car sales, we’re seeing rapid changes ripple across industries and income brackets.
This week, we explore:
- The IRS’s seventh commissioner of the year
- A new deduction on interest for U.S.-assembled cars
- A return of immediate R&D expensing, fueling U.S. hiring
- The CBO’s estimate that 10 million Americans will lose health insurance under the new law
- A market update showing the S&P 500 surging thanks in part to Trump’s tax policy
Let’s break it all down.
1. IRS Turmoil Continues with Seventh Leader of 2025
Sarah D. Wire for USA Today
The IRS has had six leaders in 2025. What that means for taxpayers.
The IRS is now on its seventh commissioner this year after President Trump ousted Billy Long, citing internal disagreements. Treasury Secretary Scott Bessent has been named interim leader.
The frequent leadership changes, combined with a 25% drop in staffing, are raising alarms across the tax ecosystem. Fewer agents, fewer audits, and reduced customer support could create significant disruptions for taxpayers—especially as the agency is still implementing core parts of the new tax law.
Former Commissioner Danny Werfel compared the instability to “changing train conductors mid-route”—a recipe for confusion in processing returns, enforcing rules, and issuing guidance.
2. Tax Break Revives Domestic Tech Hiring for R&D
Meg Tanaka for Wall Street Journal
No More Offshore: Startups Look to Spend and Hire in U.S. Due to Trump Tax Change
A revived tax incentive under Trump’s One Big Beautiful Bill is helping tech startups afford U.S.-based R&D hires again. The bill allows companies to immediately deduct domestic R&D costs, instead of spreading them over five years (or 15 for foreign expenses).
Early results:
- Finta, a tax software startup, will hire five U.S.-based engineers.
- Turing Labs reversed course on international hiring and will now expand its Bay Area team.
- R&D job postings have jumped 15–20% since the bill passed.
For tax professionals working with founders or VC-backed startups, this is an important moment to reassess expensing strategies and state-level R&D credits.
3. “No Tax on Car Loan Interest” Kicks Off — With Caveats
Daniel De Vise for USA Today
Trump’s tax break changes the math for car buyers
A new federal tax deduction allows consumers to write off interest on new car loans—but only for U.S.-assembled vehicles purchased between 2025 and 2028.
Key details:
- Deduction cap: $10,000/year
- Income limits: Phases out after $100K (single) and $200K (married)
- Doesn’t apply to used cars or loans issued before 2025
Tax advisors should help clients understand that this is a deduction, not a credit, and its real-world savings—often just a few hundred dollars—won’t offset the higher cost of new cars for most buyers.
4. CBO: 10 Million Americans Will Lose Insurance Under New Law
Bo Erickson for Reuters
10 million Americans will go uninsured due to Trump tax and spend law, CBO estimates
According to the Congressional Budget Office, the new tax law will leave 10 million more Americans without health insurance over the next decade. The estimate points to Medicaid eligibility restrictions and benefit changes that disproportionately impact low-income households.
Income projections:
- Poorest households: Average annual income drops by $1,200
- Middle-income households: Gains of $800–$1,200
- Wealthiest Americans: Benefit by over $13,000 per year
Tax professionals should be aware of the broader socioeconomic shifts, especially when advising families navigating both tax changes and potential loss of coverage.
5. S&P 500 Surges as Citi Credits Trump’s Tax Law
Fred Imbert for CNBC
Citi raises S&P 500 forecast thanks to strong profits, tax bill benefits
Citigroup raised its S&P 500 year-end forecast from 6,300 to 6,600, citing strong corporate earnings and early benefits from the Trump tax bill.
Highlights:
- 2025 EPS estimates rose to $272, up from $261
- 81% of companies beat earnings expectations
- Tariff impacts are being offset by R&D expensing, corporate tax cuts, and steady consumer demand
For both wealth advisors and tax professionals, this market movement reinforces the importance of proactive tax planning for clients with investment income.
Your Takeaway This Week
IRS leadership is in flux. Tech startups are hiring again. Car buyers are working out the new rules. And the CBO’s forecast is sparking questions about economic equity.
No matter if you’re helping a founder navigate R&D deductions, advising a retiree facing insurance cuts, or managing investment strategies during tax-driven market surges—tax guidance is no longer seasonal. It’s strategic.
Want to help your firm stay ahead of policy shifts?
Talk to Harness today to explore how our platform helps modern advisors deliver smarter, more proactive tax planning.
Interested in using Harness at your tax firm, or know a tax firm you’d like to refer to Harness? Schedule an introduction today.
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