Tax & Accounting News

TaxBuzz Top 5 - Harvard Sues Trump Administration, "Big Beautiful Bill" Heads to Senate & More

5/23/2025

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. Harvard Sues Trump Administration Over Ban on Enrolling International Students

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Harvard University has filed a lawsuit against the Trump administration following a Department of Homeland Security decision barring the school from enrolling new international students. The administration alleges Harvard violated federal law by failing to adequately respond to incidents of antisemitism and by fostering connections with foreign governments, including China. The university argues the action is a politically motivated attack on academic freedom and a violation of constitutional protections.

According to The New York Times, the policy could impact more than 7,000 international students -- nearly a quarter of the Ivy League institution's student body -- and jeopardizes Harvard’s global standing just days before its commencement. Harvard President Alan Garber said the university is “deeply concerned” about the targeting of international scholars and called the action “unprecedented and unlawful.” In its legal complaint, Harvard also accuses the government of retaliation and of circumventing proper legal channels.

The lawsuit is the second major legal challenge between Harvard and the administration in recent months. It follows earlier disputes over research funding and tax-exempt status. If the new policy is upheld, it could deal a significant blow to the broader U.S. academic community, which relies on international enrollment for both intellectual and financial contributions.

A government spokesperson defended the move, citing security concerns and failure to provide requested protest footage and student data. But education groups and policy analysts warn the action could deter global talent from coming to the U.S.

2. Trump Threatens 25% Tariff on Apple Over iPhone Manufacturing

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President Donald Trump has warned that Apple will face a 25% tariff on iPhones sold in the U.S. unless the company relocates its manufacturing from countries like India and China to the United States. In a Truth Social post, Trump stated, “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

This announcement led to a 3% drop in Apple’s stock and contributed to broader market declines, with the S&P 500 and Nasdaq falling by 1.5% and 2%, respectively. Analysts express concern that shifting iPhone production to the U.S. could significantly increase costs, potentially raising the price of an iPhone to as much as $3,500.

Apple has been diversifying its manufacturing, with plans to produce up to 65% of iPhones in India by fall 2025. Per a CBS report, the company has also committed to investing $500 million in U.S. manufacturing over the next four years, including building a new facility in Houston, Texas.

Trump’s tariff threat is part of a broader trade strategy, which includes a proposed 50% tariff on European Union goods starting June 1, citing stalled negotiations.

3. House Passes Trump's Sweeping Tax and Spending Bill

Credit: Win McNamee/Getty Images News

In a narrow 215–214 vote, the House of Representatives approved President Donald Trump's expansive "One Big Beautiful Bill Act," a 1,100-page legislative package that combines $4.5 trillion in tax cuts with significant reductions to social programs. The bill aims to make permanent the 2017 tax cuts and introduces new exemptions for tips, overtime pay, and car loan interest. Per the AP, to offset the revenue loss, it imposes stricter work requirements for Medicaid and SNAP (food stamps), cuts green energy incentives, and includes $350 billion in additional spending, $150 billion of which supports Trump's defense and border security goals.

The Congressional Budget Office estimates the bill would increase deficits by $3.8 trillion over the next decade while resulting in 8.6 million fewer people with health coverage and 3 million fewer SNAP recipients monthly.

The legislation also targets Planned Parenthood by blocking Medicaid funding, potentially leading to the closure of 200 clinics. Additionally, it would end Medicaid coverage for gender-affirming care by 2027 and bar such services from being required in ACA marketplace plans.

Democrats opposed the bill, criticizing it as a burden on low-income Americans and an abandonment of critical social programs. The bill now advances to the Senate, where its future remains uncertain.

Additional details about the bill's passage, and what it means for Americans, can be found here.

4. DeSantis Pushes for Property Tax Cuts Amid Legislative Standoff

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Florida Governor Ron DeSantis is advocating for a $1,000 property tax rebate for homeowners with a homestead exemption, aiming to provide immediate relief and set the stage for a 2026 ballot initiative to eliminate property taxes entirely.

The proposal, outlined on the Florida Governor's Office official website, has sparked a budget impasse in the Republican-controlled legislature. House Speaker Daniel Perez favors a sales tax reduction from 6% to 5.25%, arguing that DeSantis's rebate plan is a temporary fix that doesn't address underlying issues.

DeSantis has criticized the House's approach, labeling a bipartisan committee on property tax reform as a "dog-and-pony show" and accusing lawmakers of stalling meaningful relief. He declined an invitation to discuss his plan before the committee, stating, "That's not the role of the chief executive."

The debate has delayed the passage of Florida's 2025–26 budget, with the legislative session extended until June 30. DeSantis maintains that property taxes are akin to "rent to the government," advocating for their elimination to allow Floridians full ownership of their homes.

Critics, including Democratic Rep. Anna Eskamani, warn that eliminating property taxes—which fund essential services like education and emergency response—could jeopardize local government operations.

As the budget deadline approaches, the standoff highlights the challenges of balancing tax relief with funding for public services.

5. Texas Offers Tax-Free Weekend for Water-Saving Products

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Texas residents can save money this Memorial Day weekend by purchasing water-efficient and water-conserving products tax-free during the state's annual Water-Efficient Products Sales Tax Holiday, running from Saturday, May 24, through Monday, May 26.

CBS Austin notes that products bearing the WaterSense® label, such as showerheads, bathroom sink faucets, toilets, urinals, and landscape irrigation controls, are eligible for the tax exemption and can be purchased for personal or business use.

Additionally, certain water-conserving items intended for residential use are also tax-exempt. These include soaker or drip-irrigation hoses, moisture controls for sprinkler or irrigation systems, mulch, rain barrels, permeable ground cover surfaces, plants, trees, grasses, water-saving surfactants, soil, and compost.

Contractors and service providers can purchase WaterSense products tax-free for inventory without needing an exemption certificate. However, water-conserving products for business use remain taxable.

Online and telephone orders are eligible for the tax exemption if the purchase is made during the holiday period, even if delivery occurs later.

The Texas Comptroller's office estimates that shoppers will save approximately $15.2 million in state and local sales tax during this holiday. For more information, residents can contact the Comptroller's office at 800-252-5555 or visit their website.

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You agree that: (i) the Website shall be deemed solely based in California; and (ii) the Website shall be deemed a passive website that does not give rise to personal jurisdiction over Taxbuzz or CountingWorks, Inc., either specific or general, in jurisdictions other than California. These Terms and Conditions shall be governed by the internal substantive laws of the State of California, without respect to its conflict of laws principles. Any claim or dispute between you and Taxbuzz that arises in whole or in part from the Website shall be decided exclusively by a court of competent jurisdiction located in Los Angeles County, California. These Terms and Conditions, together with the Privacy Policy at https://www.taxbuzz.com/t/privacy and any other legal notices published by Taxbuzz on the Website, shall constitute the entire agreement between you and Taxbuzz concerning the Website. If any provision of these Terms and Conditions is deemed invalid by a court of competent jurisdiction, the invalidity of such provision shall not affect the validity of the remaining provisions of these Terms and Conditions, which shall remain in full force and effect. No waiver of any term of this these Terms and Conditions shall be deemed a further or continuing waiver of such term or any other term, and Taxbuzz's failure to assert any right or provision under the Terms and Conditions shall not constitute a waiver of such right or provision. YOU AND TAXBUZZ AGREE THAT ANY CAUSE OF ACTION ARISING OUT OF OR RELATED TO THE WEBSITE MUST COMMENCE WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUES. OTHERWISE, SUCH CAUSE OF ACTION IS PERMANENTLY BARRED.
Liability Limitation and Usage Guidelines for TaxBuzz Ai:
Limitation of Liability:

TaxBuzz Ai is a tool designed to provide tax professionals with assistance in generating responses to tax research questions. While we strive to maintain the accuracy and reliability of the information provided, it is imperative to recognize that tax laws are dynamic and subject to change. Therefore, the use of TaxBuzz Ai should be complemented by professional judgment and consultation with legal and tax experts.

By utilizing TaxBuzz Ai, you acknowledge and agree that the information generated should not be considered as a substitute for professional advice tailored to your specific circumstances. We explicitly disclaim any liability for the consequences arising from the use of advice generated by TaxBuzz Ai. Users are encouraged to independently verify the information and seek professional advice before making decisions based on the Ai-generated responses.

Usage Guidelines:
- Professional Judgment: TaxBuzz Ai is a tool to aid tax professionals in research and analysis. It is not a replacement for professional judgment, and users should exercise their expertise when interpreting and applying the information generated.
- Consultation with Experts: While TaxBuzz Ai provides valuable insights, it is crucial to consult with legal and tax experts to ensure the advice aligns with the latest legal developments and specific nuances of a particular situation.
- Verification of Information: Users are responsible for independently verifying the information provided by TaxBuzz Ai, especially in instances where the advice generated is critical to decision-making.
- Educational Purposes: TaxBuzz Ai is intended for educational and informational purposes only. It is not intended to provide specific legal or tax advice tailored to individual circumstances.
- Non-Endorsement: The use of TaxBuzz Ai does not constitute an endorsement or guarantee of the accuracy of the information provided. Users are encouraged to corroborate the advice with other reliable sources.
By accessing and using TaxBuzz Ai, you agree to abide by these terms and acknowledge the limitations outlined herein. We reserve the right to modify these terms at any time, and your continued use of TaxBuzz Ai constitutes acceptance of any such modifications. If you do not agree with these terms, please refrain from using TaxBuzz Ai.

TaxBuzz.com is a service of CountingWorks, Inc., 2549 Eastbuff Drive., #448 208, Newport Beach, CA 92660

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