In March of 2025, President Trump signed an executive order requiring the federal government to transition from paper checks to electronic payments for all payments and disbursements by September 30, 2025. This mandate, which includes federal tax return refunds and payments, marks a transformative moment for the U.S. tax administration system.
August 23, 2025National Guard Mobilizing Across 19 States to Clean Up Democratic Party’s Alarming Failures. Pentagon officials confirmed to FOX News late Friday that up to 1,700 National Guard troops will mobilize across 19 states from August through mid-November to support the Department of Homeland Security’s “America First” mission, a sweeping crackdown to arrest and deport criminal illegal aliens while restoring law and order in metro areas gutted by rogue Democratic leaders after a decade of disastrous progressive policies that unleashed destructive violent crime waves.
August 24, 2025
- No stimulus checks: Officials have confirmed that social media rumors of a new round of stimulus checks in August 2025 are false.
- Property tax shift (Montana): In Montana, new state legislation has shifted the property tax burden by increasing taxes on agricultural and business properties to decrease them on residential homes. Some have criticized the move, arguing it does little to limit government spending.
- Indian tax cuts: In an effort to boost demand amid looming US tariffs, Indian Prime Minister Narendra Modi is considering a push to cut consumption taxes on everyday goods.
- Tariff-related penalties: As of late August, the Trump 2.0 tariff tracker indicates that penalties for transshipped goods have taken effect, and the de minimis exemption for shipments has been suspended.
Financial news
- Fed independence tested: Amid pressure for interest rate cuts, Federal Reserve Chair Jerome Powell is facing new challenges to the Fed’s independence. Financial markets are closely watching the annual Jackson Hole meeting for any signals on potential rate cuts.
- US sanctions on Russia: A New York Times report explored why US sanctions on Russia haven’t stopped the war in Ukraine and the limits of relying on economic power.
- Nvidia and AI: Tech company Nvidia continues to be a dominant force in the stock market due to the arms race in generative AI, which is driving significant capital expenditure from major tech companies.
- China stock market: The China stock market continues a bull run that some experts view as risky and potentially disconnected from the country’s economic backdrop.
- Global economic concerns: A Nobel Prize-winning economist has expressed concerns that the US is becoming a “scary place to invest,” citing worries that Trump’s tariff policy could lead to stagflation.
- Arizona budget tightening: Arizona’s Governor has asked state agencies to limit spending increases due to concerns about the economic impact of the new “Big Beautiful Bill”.
- Data center energy consumption: The growth of AI data centers is raising concerns in some areas, like the French city of Marseille, where they are consuming significant amounts of electricity and impacting energy supply.
Key financial news for August 24, 2025 revolves around Fed discussions of potential rate cuts and the broader economic outlook, as well as the impact of recent “One Big Beautiful Bill” legislation. On the tax front, significant changes have occurred due to the new legislation, affecting everything from energy credits to property taxes.
Financial news
Markets await Federal Reserve moves
- Jackson Hole meeting: Financial markets are watching for any sign that the Fed will cut interest rates during the annual Jackson Hole summit in Wyoming.
- Powell’s comments: In remarks on August 23, Fed Chair Powell noted that economic growth “has slowed notably in the first half of this year” to an annual rate of 1.2%, down from 2.5% last year.
- Inflation concerns: Powell also said tariffs have started to increase the price of goods, which is a factor Fed officials are monitoring carefully.
- Independence in question: Powell continues to assert the Fed’s independence in setting monetary policy, a point of tension with President Trump, who has pushed for lower interest rates.
Global economic developments
- Russia sanctions: A New York Times report explores why US sanctions on Russia have not been as effective as hoped in stopping the war in Ukraine.
- China’s stock market: Analysts are raising concerns about bubble risks as China’s stock market bull run continues despite signs of economic anxiety.
Company updates
- Spotify: The company has reportedly flagged price rises as it introduces new services.
Tax news
Impact of the “One Big Beautiful Bill Act” (OBBBA)
- Extended tax cuts: Many provisions of the 2017 Tax Cuts and Jobs Act were extended, including the higher standard deduction, lower tax brackets, and higher lifetime estate tax exemption.
- Energy credit termination: The IRS has issued FAQs regarding the termination of several energy provisions due to the OBBBA, including credits for electric vehicles and energy-efficient home improvements. The EV credits will expire on September 30, 2025.
- Withholding and information returns: The IRS confirmed there will be no changes to individual information returns or withholding tables for the 2025 tax year under the new law, a delay until tax year 2026.
IRS updates and reminders
- Identity protection: The IRS is reminding taxpayers and tax professionals about the importance of using Identity Protection PINs and IRS Online Accounts to prevent identity theft.
- Extension deadline: The IRS reminded taxpayers that the extension deadline for filing returns is October 15, 2025.
- Disaster relief: Taxpayers in certain areas of Texas, Missouri, Arkansas, and Tennessee affected by severe storms and flooding have extended deadlines to file and pay.
- Free tax filing options: The IRS is asking for public input via an anonymous survey on tax preparation and filing options, which will help inform a report to Congress.
Other tax news
- State property taxes: In Montana, new legislation shifted the state’s tax burden, leading to lower taxes for some primary residences but potentially higher costs for businesses and agriculture properties.
- Capital gains update: The income threshold for paying 0% capital gains tax increased for the 2025 tax year, though rates for higher earners remain.
- Indian tax cuts: As the U.S. threatens new tariffs, India’s Prime Minister Narendra Modi is reportedly considering tax cuts on consumer goods to boost the economy.
