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TaxBuzz Top 5 - Nationwide Tax Strike Rally Set for Jan. 3, Federal Judge Sides With Sportsbooks Against Betting Tax & More

by
Rebekah Barton
on
12/31/2025
TaxBuzz Top 5 - Nationwide Tax Strike Rally Set for Jan. 3, Federal Judge Sides With Sportsbooks Against Betting Tax & 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.

As we wrap up the final news roundup of 2025, we want to thank you for spending another year with us tracking the tax, policy, and economic stories that shape everyday life. We’re excited to kick off 2026 together next week, with a fresh year of coverage, context, and insight you can actually use.

1. Nationwide “Tax Strike” Rallies Planned Jan. 3 As Protest Movements Gain New Tactics

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Credit: Vanessa Nunes/Getty Images

Organizers on social media are planning a series of “tax strike” rallies across the United States on January 3, in which participants say they intend to withhold paying taxes as a form of protest against what they describe as governmental overreach and mismanagement. The demonstrations, per Newsweek, are being shared widely on platforms like X and Facebook, with posters calling for gatherings at state capitols and public squares nationwide. 

While it isn’t yet clear who is coordinating the events or how many people will participate, some posts link the planned tax strikes to broader political grievances, including criticism of Democratic leaders and alignment with figures associated with MAGA-aligned politics. Speakers at some rallies are circulating names like Scott Keyser and libertarian activist Joseph Lehman, though organizers and authorities have not formally confirmed these details. 

The rallies reflect the growing role of protest movements in fiscal and political debates, spanning a spectrum of tactics from marches to economic actions. Historically, protests about taxation in the U.S. have ranged from the Tax March demanding Trump release his tax returns in 2017 to localized economic boycotts by advocacy groups pushing for corporate tax fairness. 

Tax strikes — where citizens intentionally refuse to pay taxes — are rare but have deep roots in protest history, from early tax revolts in America to contemporary movements that see economic noncompliance as a form of political expression. 

Federal authorities typically treat tax refusal as legally actionable, and it’s unclear how the IRS or local law enforcement will respond to rallies that encourage non-payment. The Jan. 3 actions are being watched closely by policy analysts, civil liberties advocates and government officials alike as a barometer of political polarization and fiscal dissent heading into 2026.

2. California Wealth Tax Backlash Grows As Rep. Ro Khanna Faces Tech Industry Pushback

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Credit: Andrew Harnik/Getty Images

Democratic Rep. Ro Khanna is drawing heavy criticism from Silicon Valley and tech leaders after voicing support for a proposed California “billionaire wealth tax” — a one-time 5 % levy on residents with over $1 billion in assets that backers say could raise up to $100 billion for health care, education, and other social needs. 

The proposed tax — still collecting signatures for the 2026 ballot — has ignited fierce opposition among tech founders, investors and industry figures who argue it would punish innovation, discourage investment, and risk driving talent out of the state. Business Insider reports that critics on social media and in open letters claim the tax could force entrepreneurs to sell large portions of illiquid company stock to satisfy their tax bills and potentially trigger “double taxation” on unrealized wealth, a major point of contention in the debate. 

Tech heavyweights like Palmer Luckey warned that forced asset sales could jeopardize company ownership, while others, including Garry Tan and David Sacks, said the measure could undermine California’s role as a global innovation hub by prompting executives and startups to relocate. Some critics have even threatened to politically challenge Khanna for his support.

Khanna, who represents part of Silicon Valley, defended his stance online, sarcastically saying he would “miss” wealthy residents who might leave — a reference to backlash from billionaires like Peter Thiel and Larry Page who are contemplating relocation. 

Supporters of the tax argue that billionaires have long benefited from tax systems that allow unrealized gains to go untaxed and that targeted wealth levies are needed to address inequality and fund essential services. The battle over this measure highlights the broader national debate over how to tax extreme wealth without compromising economic growth and competitiveness.

3. Court Rules For Sports Betting Alliance In Chicago Tax Lawsuit in Major Precedent For Betting Industry

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Credit: sb-borg/Getty Images

A federal judge has sided with the Sports Betting Alliance (SBA) in a legal challenge against the city of Chicago’s new sportsbook tax, marking a potentially important legal precedent for the future of sports betting taxation and regulation nationwide. The lawsuit argued that Chicago’s tax on gross gaming revenue from sportsbooks violated state law and imposed an unfair burden on operators already subject to state-approved tax structures. 

Under Chicago’s ordinance, licensed sportsbooks would have owed a steep percentage of their receipts in city taxes on top of existing state taxes, a combination the SBA contended would make operations uneconomic and discourage legal wagering growth. The judge agreed, finding that municipal taxes cannot supersede or conflict with Illinois’s state gaming and sports-betting framework without explicit legislative authorization. 

Industry advocates hailed the ruling as a significant win for regulated sports betting, arguing it protects operators from a patchwork of local levies that could undermine market stability and consumer protections. Because legal sports betting remains relatively new and rapidly expanding across the U.S., this decision could limit cities’ ability to impose their own additional taxes unless state law clearly permits it — a point that may shape legislative approaches in other states with emerging betting markets. 

Critics of the ruling contend that municipalities dealing with budget shortfalls should have flexibility to tax new revenue streams like sports wagering. But legal experts say the decision reinforces the primacy of state-level tax authority in this arena unless lawmakers explicitly delegate taxing powers to local governments.

4. Nine States Slashing Individual Income Taxes in 2026 as Debate Over Public Services and Growth Continues

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Credit: pabradyphoto/Getty Images

Starting January 1, 2026, nine U.S. states will reduce their individual income tax rates, in league with a broader trend of state tax cuts that accelerated after pandemic-era budget surpluses and ongoing political pressure to keep more money in taxpayers’ pockets. According to a CBS News report based on a Tax Foundation analysis, the states lowering income taxes are: Georgia, Indiana, Kentucky, Mississippi, Montana, Nebraska, North Carolina, Ohio and Oklahoma. 

In Georgia, the flat rate drops from 5.19 % to 5.09 %, moving the state incrementally toward its long-term goal of under 5 % and fueling legislative discussions about eventual elimination of the tax entirely. Indiana’s flat rate will tick down slightly again, while Kentucky’s legislature has already authorized a reduction from 4 % to 3.5 %, a key GOP priority.

Other states like North Carolina are cutting to a 3.99 % flat rate, and Nebraska is trimming from about 5.2 % to 4.55 %, reflecting broader moves toward flatter, simpler tax codes. Oklahoma is both lowering its top rate and reducing bracket complexity, and Montana will trim its top marginal rate as part of a phased reform. Mississippi’s rate drops as part of a multi-year cut that could ultimately approach zero for individual income tax. 

Supporters argue these changes boost take-home pay, attract talent and stimulate growth, while critics caution they may erosion funding for education, health care and infrastructure, especially once federal pandemic dollars fade. 

5. Congress Faces Push To Undo Gambling Tax Change That Could Hit Players, Casinos Nationwide

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Credit: halbergman/Getty Images

Federal lawmakers are intensifying efforts to reverse a recent tax change affecting gambling loss deductions that was tucked into the massive One Big Beautiful Bill Act signed by President Donald Trump in 2025. Under the new rule, gamblers can only deduct 90 % of their losses against winnings for federal tax purposes — meaning even a break-even year can trigger taxable “phantom income.” Without action, the change takes effect for the 2026 tax year and could ripple through the legal gambling market. 

Nevada Rep. Dina Titus has been a leading voice pushing back on the provision, citing concerns that it will hurt both professional and casual bettors as well as the broader Nevada gaming economy. Titus introduced the FAIR BET Act to restore the full 100 % deduction for gambling losses, arguing that the current structure unfairly penalizes bettors and could push activity toward unregulated offshore markets. She’s urged House Ways and Means Chairman Jason Smith to put her bill on the committee calendar ahead of the 2026 filing season. 

Industry experts say the change could reduce participation in U.S. regulated markets and dampen tourism revenue for casino hubs like Las Vegas, where officials and business groups have publicly warned lawmakers about the economic impact. While some Republicans have signaled openness to a fix, Titus’s effort has already faced procedural hurdles, including earlier setbacks when a related amendment failed to advance on the National Defense Authorization Act.

As 2026 approaches, this fight could set an important precedent in how federal tax policy treats gambling income and deductions, with potential implications for gaming operators, bettors, and state economies that rely on regulated gambling tax bases.

Which headline this week most interests you?

Feature Image Credit: Alessandro Biascioli/Getty Images

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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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