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TaxBuzz Top 5 - Trump to Impose 100% Tariffs on Pharma, New York Tax Auditor Bribed in Strip Club Scam & More

by
Rebekah Barton
on
9/26/2025
TaxBuzz Top 5 - Trump to Impose 100% Tariffs on Pharma, New York Tax Auditor Bribed in Strip Club Scam & 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. Trump to Impose 100% Tariff on Imported Pharmaceuticals, Plus Levies on Furniture, Cabinets, Trucks

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Credit: Andrew Harnik/Getty Images

President Trump announced a sweeping package of new tariffs to take effect October 1, including a 100% tariff on imported branded or patented pharmaceutical products. He exempted companies actively building manufacturing plants in the U.S.—defining “building” as breaking ground or being under construction. 

Other key levies include:

  • 50% tariffs on kitchen cabinets and bathroom vanities 
  • 30% tariffs on upholstered furniture 
  • 25% tariffs on heavy trucks 

While the administration frames these as protective measures to boost domestic manufacturing and address trade imbalances, analysts warn of inflationary risks, especially in healthcare. The tariff could double the cost of many medicines. 

For U.S. consumers, the impact could be immediate. Medicare, Medicaid, insurers, and patients may face higher drug costs. For companies relying on imported materials—kitchens, furniture, trucks—the tariffs raise input costs and may squeeze profitability.

The move arrives amid ongoing trade tensions and prior use of tariffs on steel, aluminum, autos, and copper. Trump has invoked national security justifications for many of these measures, though legal grounds remain contested.

2. New York Tax Auditor Bribed in $8M Strip-Club Fraud Scheme

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Credit: designer491/Getty Images

RCI Hospitality Holdings, the parent company of Rick’s Cabaret and other strip clubs, has been indicted in New York state for allegedly orchestrating a long-running tax fraud and bribery scheme to dodge over $8 million in sales taxes tied to “Dance Dollars” — a proprietary currency used for private dances. These charges range across 79 counts, including conspiracy, bribery, and criminal tax fraud.

According to prosecutors, from 2010 to 2024, RCI executives bribed a New York state auditor in order to get favorable outcomes on six audits. Per the indictment, the auditor received lavish perks—at least 13 all-expenses paid trips to Florida, hotel stays, meals, and up to $5,000 per day in private dances at RCI venues. Also, the auditor was apparently given free meals, admission, and performances at NYC clubs. In return, the auditor allegedly gave RCI reduced assessments, waived interest and penalties, and shielded the clubs from further tax scrutiny. 

Among those indicted are CEO Eric Langan, controller/accountant Timothy Winata, CFO Bradley Chhay, and other key executives. RCI has denied the allegations, calling them baseless and promising to defend itself in court. Following the news, RCI’s stock dropped about 16%.

3. France Proposes Wealth Tax on Billionaires Under Pressure from Zucman Plan

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Credit: yann vernerie/Getty Images

France is once again in the grip of a heated debate over taxing the ultra-rich, as economist Gabriel Zucman’s proposal for a 2% wealth tax on households with assets above €100 million gains traction. The proposal, backed by the Socialist Party, would affect roughly 1,800 households and could raise as much as €20 billion per year. 

Support for the tax is strong across the political spectrum. A recent Ifop poll commissioned by the Socialists found 86% of French voters in favor—even among those aligned with President Macron’s party. Zucman argues that many billionaires currently pay little or no income tax relative to ordinary citizens, thanks to wealth structures that minimize taxation or leverage favorable rules.

Critics warn the tax could trigger capital flight, with ultra-wealthy individuals relocating assets or changing residency to escape the levy. Some economists argue the revenue might fall far short of expectations. Legal and constitutional challenges loom over applying a wealth tax to non-liquid assets, corporate shares, or trusts. 

The proposal has also drawn high-profile opposition. Bernard Arnault, CEO of LVMH and often cited as France’s richest man, has publicly denounced it as “deadly for our economy,” accusing Zucman of promoting “ideological anti-liberal” measures. 

4. Utah Blocks 39 Local Tax Hikes After Strict “Truth-in-Taxation” Rule Change

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Credit: Renphoto/Getty Images

Utah’s recent legislative change to its “Truth-in-Taxation” requirements has led to the rejection of 39 proposed tax increases across cities, school districts, and special service areas—denying about $80 million in new funds. 

Previously, local governments had some flexibility to negotiate with the Utah State Tax Commission if they made procedural errors—such as failing to properly notify residents or hold standalone tax hearings. But under the updated law, the commission is now barred from certifying any tax rate unless every procedural requirement is met. 

One illustrative example: Draper city officials say they lost $953,000 in funding for a new fire truck because their public hearing slide failed to include what nearby entities were doing, a detail required under the stricter rules.

Among the districts turned away are the Alpine School District (seeking nearly $23 million) and Granite School District (nearly $18 million)—denied over procedural missteps. Local officials warn the decision forces them to rethink budgets for schools, public safety, and infrastructure. Draper’s mayor asked residents to approve funding through reserves or future levies.

5. Pennsylvania Supreme Court Strikes Down Pittsburgh’s “Jock Tax” on Visiting Athletes and Performers

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Credit: filo/Getty Images

The Pennsylvania Supreme Court unanimously ruled Thursday that Pittsburgh’s so-called “jock tax”—a 3% levy on income earned by visiting athletes and performers at publicly funded stadiums—violates the state constitution’s Uniformity Clause because it discriminates against nonresidents. The city’s defense that resident athletes pay 1% city tax plus 2% school tax (totalling 3%) was rejected, since nonresidents aren’t subject to the school district tax. 

The court emphasized that Pittsburgh provided no “concrete reasons” to justify this differential treatment. Justice David N. Wecht, writing for the court, said the city failed to show why nonresident performers should bear a heavier tax burden.

Pittsburgh had already collected $2.6 million in 2025 under the tax. With the ruling in place, that revenue stream has been cut off. City officials warned the loss will shift more of the fiscal burden onto local residents, potentially undermining funding for essential services tied to tax revenue.

Mayor Ed Gainey’s office voiced disappointment. A city spokesperson said the ruling forces the city to reexamine its budget and might require difficult tradeoffs: “This decision will further shift the cost burden of essential city services onto our residents,” the statement said. The plaintiffs in the case included players from the NHL, NFL, and MLB, supported by their players’ associations.

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Feature Image Credit: Anna Moneymaker/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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