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TaxBuzz Top 5 - UK Deputy PM Angela Rayner Resigns Over Tax Trouble, Ohio Becomes Major Property Tax Battleground & More

by
Rebekah Barton
on
9/5/2025
TaxBuzz Top 5 - UK Deputy PM Angela Rayner Resigns Over Tax Trouble, Ohio Becomes Major Property Tax Battleground & 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. UK Deputy PM Angela Rayner Resigns Over Stamp Duty Underpayment

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Credit: Dan Kitwood/Getty Images

Per The New York Times and multiple sources, Deputy Prime Minister Angela Rayner has resigned from her roles—including Housing Secretary and Deputy Leader of the Labour Party—after an independent ethics inquiry concluded she underpaid approximately £40,000 in stamp duty on a recently purchased flat in Hove. The probe, conducted by Sir Laurie Magnus, found she had breached the ministerial code by failing to seek specialist tax advice when buying the property. The inquiry noted Rayner acted in good faith and displayed integrity, but nonetheless deemed her resignation necessary.

Rayner, known for her working-class background and cross-party appeal, expressed “deep regret” for the oversight, citing mounting media scrutiny and the emotional toll on her family as part of her decision to step down. Prime Minister Keir Starmer accepted her resignation with personal regret, praising her public service contributions.

Her exit marks the eighth ministerial departure from Starmer’s government, delivering a significant blow to party stability and fueling criticism from opposition leaders who highlighted the ethical lapse. This resignation comes at a politically sensitive time—amid ongoing debates over tax transparency and amid Starmer’s efforts to solidify his administration’s standing. A cabinet reshuffle is now underway as Labour navigates the fallout.

2. Ohio Property Taxes Turn Political Battleground as Abolitionists Clash with Reformers

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Credit: halbergman/Getty Images

Ohio has become a heated battleground over property taxes. In late June, Governor Mike DeWine vetoed most property tax reforms approved by state lawmakers, setting off fierce debate across the state. State Rep. Gary Click introduced the “Taxpayer Freedom Trilogy”—three bills aimed at eliminating perpetual levies, empowering voters to curb local government tax increases, and raising voter thresholds for approving new property taxes. Supporters say it restores transparency and puts taxpayers back in control. 

Meanwhile, a citizen-led campaign, the Committee to Abolish Property Taxes, is racing to gather approximately 443,000 signatures to place a measure on the 2025 ballot that would abolish property taxes entirely. 

Per the Office of the Attorney General, the Buckeye State's AG Dave Yost warned that scrapping property taxes without a viable replacement could plunge local governments and schools into chaos. He urged officials to act quickly or risk losing control of the reform process. At the same time, the legislature passed a new budget that includes property tax relief from unspent school district funds, a move designed to buffer homeowners from rising tax burdens while maintaining essential services. 

Bottom line: Ohioans are demanding relief, but the debate pits cautious reformers against abolitionists, with the future of schools and local services hanging in the balance.

3. Seniors Get Tax Break on Social Security Benefits, But Solvency Concerns Loom

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Credit: SelectStock/Getty Images

A major change in President Trump’s “One Big Beautiful Bill” will spare most retirees from paying federal income taxes on Social Security benefits, reports CNBC. Nearly 88% of beneficiaries now qualify for the new $6,000 standard deduction for individuals over 65, or $12,000 for couples. For middle-income seniors who previously saw part of their benefits taxed, this means a noticeable bump in take-home income. Lower-income retirees, many of whom already paid no taxes, are less affected.

The relief is welcome news for millions of households on fixed incomes, who will see more stability in their monthly budgets. For many, it eliminates the need to set aside funds for April tax bills and provides some cushion against inflation and rising medical costs.

But fiscal watchdogs warn that the policy could accelerate Social Security’s financial challenges. The Congressional Budget Office has adjusted projections, estimating that the Old-Age and Survivors Insurance Trust Fund may now be depleted by late 2032—about a year earlier than before. With reduced tax revenue flowing into the system, pressure is building on lawmakers to address the long-term solvency question.

For now, seniors will enjoy the tax break, but the debate over Social Security’s future is likely to intensify in Washington as policymakers weigh today’s relief against tomorrow’s funding shortfall.

4. New Mexico Seeks $165 Billion Tax Break to Fuel AI Data Center Boom

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Credit: Brbnkseaj/Getty Images

Doña Ana County, New Mexico is laying the groundwork to attract AI data centers by proposing a staggering $165 billion debt package coupled with sweeping tax incentives. Local officials in this unlikely location hope to transform the chile-pepper–farming region into a major tech hub serving the AI industry.

This isn’t an isolated gambit. State and local governments across the U.S. have granted billions in tax relief to data center developers. These facilities receive extensive exemptions, from sales and property taxes to utility surcharges, often automatically and without expiration. In Texas, Bloomberg reports, predicted tax revenue loss from such incentives soared from $157 million to over $1 billion within two years. 

Advocates argue these incentives drive economic development and expand infrastructure. Yet critics warn that the tax breaks outpace any fiscal benefit. A report shared by TIME Magazine shows 10 states already forgo over $100 million annually due to data center exemptions, while some lack transparency altogether. 

This push in New Mexico could reshape how communities balance tech investment against fiscal realities. While an AI data center could bring jobs and growth, granting nearly unconstrained tax relief risks burdening public finances—especially if costs far outweigh benefits. Georgia, Texas, and Virginia illustrate how fast costs can escalate without limits or oversight. As AI booms, policymakers need to ask not just whether they can attract infrastructure, but whether taxpayers are paying too high a price.

5. “No Tax on Tips” Extends to Podcasters, Influencers, and More in New Tipped-Income Tax Break

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Credit: Perawit Boonchu/Getty Images

President Trump's "No Tax on Tips" provision—part of the new One Big Beautiful Bill enacted in July 2025—now extends federal income tax deductions to include digital creators like podcasters, social media influencers, and streamers, in addition to traditional tipped workers.

The preliminary list released by the Treasury Department includes familiar roles such as bartenders, taxi drivers, casino dealers, and household workers, but it also covers digital content creators—a groundbreaking expansion that recognizes the growing gig-based and digital tipping economy.

Under the law, eligible individuals can deduct up to $25,000 of reported tip income, provided they file under the income cap ($150,000 for individuals, $300,000 for joint filers). The benefit will last from 2025 through 2028. However, the deduction applies only to tips reported via W-2 forms—not those given online through platforms like Twitch bits or TikTok gifts—raising questions about reporting methods.

The Joint Committee on Taxation estimates the policy will cost $32 billion over the next decade, potentially increasing the budget deficit by up to $40 billion. Critics warn the policy may disproportionately benefit employers by enabling lower base wages and incentivizing job reclassification into tipped roles—without solving deeper wage issues. Labor advocates suggest that systemic reforms, like abolishing the tipped minimum wage or expanding the EITC, would better support low-income workers.

Which headline this week most interests you?

Feature Image Credit: Leon Neal/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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