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TaxBuzz Top 5 - Starbucks CEO Made Over 6,000x Employee Salaries, Trump Looks to Nix Capital Gains Tax on Home Sales & More

by
Rebekah Barton
on
7/25/2025
TaxBuzz Top 5 - Starbucks CEO Made Over 6,000x Employee Salaries, Trump Looks to Nix Capital Gains Tax on Home Sales & 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. Starbucks CEO Earns Nearly $100M in 2024 — a 6,666× Gap Over Workers

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Credit: Michael Reaves/Getty Images

Starbucks CEO Brian Niccol earned an astonishing $97.8 million in total compensation in 2024, making him 6,666 times more than the company’s median worker, whose annual pay was under $15,000, according to a new AFL-CIO report.

This staggering disparity underscores a broader trend across U.S. businesses: the average CEO-to-worker pay ratio among S&P 500 companies climbed to 285-to-1 in 2024, up from 268-to-1 in 2023, as executive pay rose 7% on average to about $18.9 million..

“The median Starbucks worker would have had to start working for Starbucks in 4643 BC just to earn what the CEO earned in 2024,” the report quipped The Guardian.

Labor advocates are sharply critical. Fred Redmond, secretary-treasurer of the AFL-CIO, slammed the gap: “Corporate CEOs are raking in millions, and now they’ll get another kickback from President Trump’s tax cut gift and anti‑worker agenda,” the article goes on to quote.

Indeed, Trump’s reconciliation bill is projected to give average S&P 500 CEOs tax savings of about $489,000—roughly 639 times more than what median workers receive in relief. While Trump campaigned against extravagant CEO pay, his 2025 tax package appears to favor corporate executives over workers. This recent data shows the pay gap widening further, putting a spotlight on consistent inequality in executive compensation.

2. Georgia Moves to Explore Eliminating State Income Tax

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Credit: Jeremy Woodhouse/Getty Images

A bipartisan cohort of Georgia state senators is embarking on a bold new effort to eliminate the state’s income tax, while ensuring ongoing funding for core services like education, healthcare, infrastructure, and public safety. Lt. Gov. Burt Jones, who helped establish the Senate Special Committee on Eliminating Georgia’s Income Tax, confirmed work will begin this summer and wrap up by mid‑December 2025.

Sen. Blake Tillery (R‑Vidalia), chair of the committee, shared that the proposal aims to bolster Georgia’s competitiveness and deliver tax relief without slashing vital services. “This is about allowing hardworking Georgians to keep their money in their pockets,” he said. “This may not happen overnight, but I’m committed to eliminating the state income tax in a way that protects Georgia’s core priorities.” 

The committee—comprising state senators from both parties—will evaluate how to replace the revenue stream in Georgia’s $38 billion FY 2026 budget, of which more than half comes from the income tax. Per the AP, analysts note there is no state income tax in nine states, and Georgia’s current flat rate of about 5.29–5.39% is among the higher ones in the Southeast.

Supporters point to Georgia’s recent budget surplus and multi-year tax cuts—such as the reduction to 5.39% in 2024 and plans for 5.19% in 2025—as evidence the state is positioned to move forward.

However, critics caution that income tax makes up more than half of state revenue and any plan to eliminate it must carefully account for predictable funding gaps. Tax reform advocates are weighing options including offsetting with broader sales taxes or rebates—similar to proposals floated under the FairTax model.

3. Trump Considers Capital Gains Cut on Home Sales—A Win for Upside Real Estate Holders

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Credit: Catherine McQueen/Getty Images

President Trump has indicated that he is “thinking about” supporting legislation that would eliminate the capital gains tax on primary home sales, potentially reshaping incentives for homeowners with steeply appreciated properties. The proposal echoes the "No Tax on Home Sales Act" introduced by Rep. Marjorie Taylor Greene, which would scrap the longstanding $250,000/$500,000 exemption limits tied to inflation, not adjusted since 1997.

Current tax law allows singles to exclude $250,000 and married couples $500,000 in gains when selling a primary residence. However, rising home values mean a growing number of homeowners—especially long-time residents in high-cost regions—are now exceeding those thresholds. According to the National Association of Realtors (NAR), about 34% of U.S. homeowners would owe capital gains tax under current limits, while roughly 10% exceed the married-couple cap.

Critics argue wholesale elimination of the tax would primarily benefit wealthier sellers and do little to alleviate broader affordability issues. Some economists warn it could inflate property prices and reduce housing inventory. Proponents say it could lower the “lock-in” effect that discourages seniors and equity-rich homeowners from selling—potentially easing supply constraints.

Trump’s remarks followed the rollout of the “One Big Beautiful Bill” Act earlier this month, although the capital gains exclusion for home sales wasn’t part of that package.

4. Tennessee Kicks Off 2025 Back-to-School Sales Tax Holiday

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Credit: Isabel Pavia/Getty Images

Tennessee's annual sales tax holiday begins 12:01 a.m. on Friday, July 25 and runs through 11:59 p.m. Sunday, July 27, 2025, allowing shoppers to buy select items tax-free. Per a WKRN video, the promotion includes clothing and school supplies priced under $100, plus computers up to $1,500 per item. Online purchases are eligible as long as the items are shipped during the designated period to Tennessee addresses. 

Retailers across the state are gearing up with sales and extended holiday hours. Popular destinations like Tanger Outlets, Academy Sports + Outdoors, and Opry Mills are offering special promotions and discounts aligned with back-to-school shopping. 

Tennessee’s annual tax-free weekend is part of a broader national trend. In 2025, at least 17 states are offering summer sales tax holidays—ranging from Alabama to Texas—on essentials like school supplies, clothing, and electronics, aiming to provide relief amid rising prices and looming tariff impacts:

  • The tax holiday includes clothing and school supplies ≤ $100 and computers ≤ $1,500, for purchases made between July 25–27.
  • Online orders qualify if paid during the holiday and shipped to a Tennessee address.
  • Many major retailers are offering additional discounts or extended hours to coincide with the tax break starting this weekend.

The tax-free weekend offers substantial savings as families prepare for the back-to-school season, especially given expected price hikes later in summer. It also underscores a growing trend of states using scheduled tax holidays to provide targeted relief in the face of economic uncertainty and consumer inflation.

5. Bengaluru Tycoon Fined ₹38 Lakh for Unpaid Road Taxes on Celebrity Rolls‑Royces

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Credit: Dallas Stribley/Getty Images

A Bengaluru-based realtor and politician widely known as Yusuf Sharif ("KGF Babu") has been slapped with a ₹38 lakh (approx. USD$44,000) revenue demand for evading road taxes on two Rolls‑Royce vehicles that once belonged to Bollywood legends Amitabh Bachchan and Aamir Khan. According to the Times of India, the Regional Transport Office (RTO) found that the luxury cars, registered in Maharashtra, had been regularly used in Karnataka for several years without paying local road tax. 

Officials said the Phantom previously owned by Amitabh Bachchan had been operating in Bengaluru since 2021, while Aamir Khan’s Ghost had been imported in 2023—both failing the mandatory one-year Karnataka tax compliance period. The penalties—₹19.8 lakh for the Phantom and ₹18.5 lakh for the Ghost—were paid immediately when the case was flagged. 

The vehicles were not seized; instead, Sharif issued cheques to settle the dues on-site after RTO officials confronted him. He later defended the mixup, stating he had paid lifetime tax in Maharashtra and was unaware that Karnataka required additional registration and road tax for out-of-state vehicles used locally. 

The RTO emphasized that under Karnataka law, any out-of-state vehicle used in the state for over a year must be registered locally and subject to state road tax. Failure to comply can lead to significant financial penalties and enforcement action.

Which headline this week most interests you?

Feature Image Credit: James Leynse/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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