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TaxBuzz Top 5 - Small Toy Company Takes Tariff Fight to Supreme Court, New York Provides $2.2 Billion in Tax Relief & More

by
Rebekah Barton
on
6/27/2025
TaxBuzz Top 5 - Small Toy Company Takes Tariff Fight to Supreme Court, New York Provides $2.2 Billion in Tax Relief & 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. Small Toy Company Takes Trump Tariff Fight to the U.S. Supreme Court

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Credit: triloks/Getty Images

Learning Resources Inc., a small, family-owned toy company based in Vernon Hills, Illinois, has asked the U.S. Supreme Court to immediately review its challenge against former President Trump’s tariffs, rather than waiting for the appeals process to unfold. The tariffs, invoked under the International Emergency Economic Powers Act (IEEPA), were ruled in district court (May 29) to exceed presidential authority, but the decision is currently stayed, keeping the tariffs—imposed on Chinese imports—active.

CEO Rick Woldenberg emphasized that the tariffs and ensuing uncertainty are severely disrupting business operations—hitting just as the back-to-school and holiday seasons approach—and halting innovation and cost planning. Indeed, the New Yorker reported on how Woldenberg stated that executive resources previously devoted to product development are now consumed by tariff-compliance efforts.

The Trump administration defends the tariffs as legitimate emergency measures aimed at trade deficits and national interests. However, appellate courts have yet to weigh in, and the Supreme Court declined to expedite the case, setting up a likely hearing in the fall after appeal court review.

If the administration prevails, it could reaffirm the president’s unilateral tariff authority. But if the legal challenge ultimately succeeds—following the District Court and Court of International Trade’s V.O.S. Selections decision—it would significantly rein in executive power and aid small businesses struggling under trade costs.

2. Senate Strikes Down Medicaid “Provider Tax” Cuts from Trump’s “Big Beautiful Bill”

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Credit: Stefani Reynolds/Bloomberg/Getty Images

The AP reports that the Senate has ruled that a central Medicaid provision in the “One Big Beautiful Bill” — a sweeping GOP tax and spending package — violates chamber rules under the Byrd Rule, forcing Republicans to rework or remove it. This provision would have slashed the provider tax, a revenue source most states impose on hospitals to boost Medicaid reimbursements, intended to offset roughly $ billions in tax cut costs.

What’s at Stake:

  • Rural hospital funding: Critics, including Sen. Josh Hawley and the American Hospital Association, warn such cuts could devastate rural hospitals by starving Medicaid reimbursements, potentially leading to emergency department closures.
  • Fiscal strategy compromised: This rollback disrupts GOP efforts to finance nearly $4 trillion in permanent tax cuts, including zero-tax on tips, overtime, and pro-growth breaks—all timed before the 2017 tax law expiration.

Next Moves:

  • Republicans are considering reconciling the bill to defer or revise the tax change to align with Senate rules.
  • Other contested elements—work requirements, immigration fee changes, SNAP revisions—are also under scrutiny by the parliamentarian.
  • Removing or altering the provision could trigger a floor challenge requiring 60 votes, a hurdle in the narrow Senate controlled 53–47 by Republicans.

Implications:

  • Healthcare & premiums: Without provider-tax cuts, deep Medicaid reductions may fall elsewhere—leading to millions losing coverage, increased uncompensated care, and pressure on commercial insurance premiums.
  • Political risk: Rural communities and swing-state hospitals may mount opposition, complicating GOP unity ahead of the midterms.

This is a developing story.

3. Nearly Three Million New Yorkers Set to Receive $2.2B in Tax Relief Checks This Fall

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Credit: designer491/GettyImages

New York Governor Kathy Hochul and the Legislature have finalized a significant infusion of tax relief—totaling $2.2 billion, set to benefit almost three million residents—scheduled for distribution during the summer and fall of 2025.

Who qualifies & how much? Eligible households are determined based on 2023 state tax returns:

  • Individuals with adjusted gross income ≤ $150K, and joint filers ≤ $300K.
  • Payments range from $200 for individuals making ≤ $75K to $400 for joint filers under $150K, tapering down to $300 for joint filers between $150K–$300K.

When will checks arrive? The New York Post reports that distribution begins in October 2025, with recipients receiving auto-issued refund checks or direct deposits, no additional application required.

This relief is funded by surplus sales tax revenue, and local officials promise the process will be smooth for middle-class filers.

Why It Matters:

Targeted Relief: This boost helps middle- and working-class families struggling with inflation, aligning with a similar inflation refund program that provided up to $500 per household last year.

No-Application Ease: The Department of Taxation and Finance will automatically issue payments—reducing red tape—similar to past stimulus distributions.

Budgetary Implications: The generosity of this one-off rebate raises questions about the state’s long-term revenue stability—especially with demands on infrastructure and MTA funding looming.

New York's $2.2 billion tax-refund plan offers meaningful, timely relief to nearly 3 million households this fall. While applauded for its simplicity and direct support, analysts are watching fiscal trade‑offs, especially in light of persistent budget pressures and future revenue demands.

4. Nigeria Overhauls Tax System with Landmark Reform Package to Ease Burden on Poor, Boost Revenue

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Credit: Manuel Augusto Moreno/Getty Images

In a sweeping move aimed at modernizing its tax system and improving compliance, Nigeria has enacted four major finance bills that promise to transform the country's approach to taxation. Signed into law by President Bola Tinubu, the reforms are intended to simplify tax administration, cut red tape for small businesses, and provide targeted relief to low-income households, all while increasing government revenue in Africa’s most populous country.

Per the BBC, the centerpiece of the reform includes the Nigeria Tax Act, which merges over 50 fragmented levies into a single code, and the Tax Administration Act, which unifies collection rules across federal, state, and local governments. Two additional laws establish the Nigeria Revenue Service (NRS) as an independent tax body and create a Tax Ombudsman and Appeal Tribunal to help resolve disputes more fairly.

The changes are expected to deliver substantial relief to lower-income Nigerians. Households earning less than ₦1 million annually (about $650) will receive a ₦200,000 rent deduction and be exempt from income tax. Essential goods and services—including food, education, healthcare, rent, and baby products—will now be VAT-free, helping families manage basic costs. Small businesses with under ₦50 million in revenue will no longer pay company income tax or be required to file audited returns.

Larger firms will see a gradual reduction in corporate tax rates, plus new VAT credit allowances to reclaim taxes paid on purchases and capital assets. Meanwhile, higher taxes on luxury items and capital gains will rebalance revenue toward the top earners.

While officials hope to raise Nigeria’s tax-to-GDP ratio from 10% to 18% by 2026, business owners and economists warn that successful implementation hinges on clear communication, fair enforcement, and trust in the system. Many remain cautious, citing concerns about bureaucratic overreach and historical corruption in tax collection in a nation that is struggling immensely economically.

5. Indiana Supreme Court Weighs Property‑Tax “1% Cap” Case with Major Local and National Precedent

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Credit: Scott Dunn/Getty Images

The Indiana Supreme Court heard a pivotal case on June 27 involving the constitutional interpretation of the state’s property tax “1% cap” on homestead property. A key question: does the cap apply only to a homeowner’s dwelling plus one acre, as current law limits, or to the entire home’s curtilage, potentially several acres? 

The legal challenge was brought by Dr. Tulsi and Kamini Sawlani, whose 3.9-acre property in Lake County was partly subject to the higher 2% cap. They argue the Constitution’s phrasing—“tangible property, including curtilage, used as a principal place of residence”—intends broader coverage, not artificially capped acreage. The Indiana Tax Court previously sided with them, saying the one-acre restriction conflicts with constitutional language. The Supreme Court’s questioning suggests major implications: expanding the cap could cost local governments significant tax revenue, potentially forcing cuts in schools, fire departments, or police services unless income tax hikes fill the gap. Justice Goff warned of community impacts, emphasizing potential closure of local services if revenue declines materialize.

Why it matters nationally:

  • Homestead tax-precedent: Yahoo News notes that a ruling that expands cap applicability could set a constitutional standard for how “curtilage” is interpreted in tax law nationwide.
  • Legislative pressure: If Indiana's one-acre limit is invalidated, other states may face similar legal challenges, forcing a reexamination of statutory homestead caps versus constitutional texts.

The court will issue a decision this fall. A favorable outcome for the Sawlanis could reshape property-tax frameworks, not just in Indiana, but across U.S. states that define homestead caps with statutory limits rather than via constitutional interpretation.

Which headline this week most interests you?

Feature Image Credit: Catherine Falls Commercial/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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