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TaxBuzz Top 5 - U.S., Britain Claim $66 Million in Taxes from Anthony Joshua, Concerns Arise About IRS Tax-Season Readiness & More

by
Rebekah Barton
on
12/24/2025
TaxBuzz Top 5 - U.S., Britain Claim $66 Million in Taxes from Anthony Joshua, Concerns Arise About IRS Tax-Season Readiness & 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. U.S. and Britain Claim About $66M in Taxes From Anthony Joshua’s Fight Purse

In the aftermath of the blockbuster boxing match between Anthony Joshua and Jake Paul, tax authorities in both the United States and United Kingdom are set to claim roughly $66 million from Joshua’s reported ~$93 million fight purse through a combination of U.S. federal levies and U.K. income and national insurance taxes — a stark example of how cross-border tax rules and high-earner taxes intersect for globally mobile talent. 

Because the fight took place in Florida, where there’s no state income tax, Joshua still faces the U.S. 37 % top federal rate on his earnings, amounting to about $52 million. When he returns to the U.K., he’ll also be taxed on global income by His Majesty’s Revenue and Customs (HMRC), plus additional U.K. National Insurance contributions, combining to reduce his take-home pay substantially. 

The case highlights a broader issue in international taxation: individuals who earn significant income across borders can face multiple tax systems asserting claims on the same earnings. That’s true not just for elite athletes and entertainers but for executives and professionals working internationally, where double taxation treaties and foreign tax credits become crucial to avoid being taxed twice on the same income. For example, the U.K.’s recent budget raised tens of billions in new tax measures — including frozen income-tax thresholds and higher inheritance-tax burdens — that have increased the overall tax load on residents and drawn scrutiny from both markets and the public.

Joshua will still walk away with a huge payday but the strikingly large tax take underscores how global tax regimes allocate revenue on internationally earned income, and why planning and treaty rules matter for anyone earning across borders.

2. Washington Gov. Ferguson Backs Income Tax On Millionaires As State Seeks New Revenue Tools

Washington’s newly inaugurated Democratic governor, Bob Ferguson, publicly endorsed a state income tax on residents earning over $1 million a year, signaling a major policy shift in one of the few U.S. states without a personal income tax. Ferguson said the progressive “millionaires’ tax” could raise billions in annual revenue and help fund priorities like K-12 education, working-family tax credits and sales-tax relief on essentials, though he stressed he would not support taxing those earning under $1 million. 

Under the proposal gaining traction among some state lawmakers, individuals with taxable income above $1 million would be subject to a graduated rate — with some versions suggesting rates near 9.9 % on top earners — a departure from Washington’s long-standing reliance on sales and property taxes and its lack of a broad income tax. Ferguson argues the state’s current tax system is regressive, with lower-income households paying a larger share of their earnings in taxes compared with the wealthy. 

The idea, however, faces significant legal and political challenges: Washington’s Supreme Court has historically barred graduated income taxes, and past initiatives to tax high-income earners or increase such levies have struggled at the ballot box. Even if passed by the Legislature, the tax would almost certainly prompt legal fights over constitutionality. 

Supporters, including progressive advocacy groups and organizations like Patriotic Millionaires that back higher taxes on the wealthy, say such measures could reduce inequality and shore up public services. Opponents — including business groups and conservative lawmakers — warn that high-earner taxes could drive talent and capital out of the state. 

As Washington heads into its next legislative session, the debate over a millionaire tax underscores tax-policy tensions in high-growth states with no income tax, weighing revenue needs against economic competitiveness and constitutional constraints.

3. Senate Democrats Raise Concerns About IRS Readiness For Tax Filing Season, Warn Of Possible Delays And Challenges

A group of Senate Democrats is sounding the alarm about the Internal Revenue Service’s (IRS) preparedness for the upcoming 2026 tax-filing season, citing leadership changes, workforce disruptions, and potential service gaps that could affect millions of taxpayers. In a letter to Treasury officials, senators led by Elizabeth Warren expressed “serious concerns” that the IRS may not be ready to handle the volume of returns, refunds and assistance needs this spring  raising questions about how the agency’s capacity could impact tax administration generally. 

The concerns come amid broader shifts at the agency, including personnel changes and the suspension of popular programs like IRS Direct File, a free online tax-filing platform that was expected to be discontinued under the current administration in a move that could push more filers toward paid preparers or complicated manual processes. 

Senators warned that if the IRS isn’t adequately staffed or equipped, taxpayers could face delays in filing, slower refunds, glitches in processing credits and deductions, and reduced customer support. They also tied these readiness issues to recent policy and budget decisions, arguing that weakening IRS infrastructure ultimately shifts burdens onto everyday Americans rather than improving tax compliance or efficiency. 

The debate highlights a broader policy contention: how much investment and oversight the federal tax agency needs to serve a complex system while maintaining timely, accurate operations, especially as new tax rules and credit expirations roll into the next filing cycle.

4. Colombia Declares Economic Emergency To Raise Taxes, Sparking Public Criticism And Protest Fears

Colombia’s government has declared an economic emergency to push through a sweeping tax-increase package, citing the need to stabilize public finances, fund social programs and shore up fiscal strength amid slowing growth. President Gustavo Petro’s administration says the move will provide legal authority to implement tax hikes more swiftly — but critics warn it circumvents democratic safeguards and could deepen inequality.

Under the emergency decree, Bogotá plans to raise taxes on corporations, high-income individuals and certain consumer goods as part of a broader effort to generate revenue for health care, education, climate action and poverty reduction. Officials argue that without stronger revenue tools, the country risks widening deficits and weakened credit ratings. However, opposition lawmakers and business groups contend the tax increases will burden the middle class, dampen investment and stifle economic recovery.

Critics have also lambasted the emergency declaration itself, saying it allows the executive branch to bypass standard legislative debate and accountability, eroding democratic norms. Public protests have already been threatened by unions and civic organizations that see the tax plan as regressive and harmful to working families.

Economists are divided: some say increased revenue is necessary to sustain public services and social spending, while others warn that poorly targeted tax hikes could slow growth and hurt job creation in an already fragile economy.

5. Chicago Budget Standoff Over Progressive Tax Push Nearly Triggered First-Ever City Shutdown

Chicago’s 2026 city budget fight this week highlighted deep divisions over progressive tax proposals and revenue strategy, as Mayor Brandon Johnson grappled with whether to veto a spending plan passed by the City Council that rejected his preferred corporate “head tax” on large employers, a policy he argued was necessary to close a $1.1 billion budget gap. 

Johnson criticized the council’s alternative budget as “morally bankrupt,” in large part because it left out his proposal for a per-employee head tax on corporations, a politically controversial progressive revenue tool he has championed. Opponents, including many aldermen and business groups, countered that such taxes could deter investment and job growth, instead backing a package of other tax and fee changes, such as a cloud computing tax, higher plastic bag fees and expanded video gambling taxes, to fund services. 

For several days, the standoff raised the specter of a rare municipal shutdown if neither side budged, a situation city officials had never previously navigated. Ultimately, Johnson chose not to veto the alderman-backed budget — letting it go into effect without his signature — averting a shutdown while underscoring ongoing tax policy tensions in Chicago. 

The clash reflects broader debates in progressive cities about how to balance tax burdens between corporations and residents, the role of targeted revenue tools versus broad tax increases, and how to fund core services without hurting economic competitiveness.

Which headline this week most interests you?

Feature Image Credit: Carmen Mandato/Getty Images for Netflix

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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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