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TaxBuzz Top 5 - Zara Founder Attempts to Shield $10 Billion from Taxes, Trump Considers EO on Student-Athlete Employment & More

by
Rebekah Barton
on
7/18/2025
TaxBuzz Top 5 - Zara Founder Attempts to Shield $10 Billion from Taxes, Trump Considers EO on Student-Athlete Employment & 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. Zara Founder’s $104 Billion Fortune Fuels $500M Spending Spree to Dodge Wealth Tax

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Credit: Hollie Adams/Getty Images

Zara founder Amancio Ortega, whose net worth now tops USD$104 billion, is on a real estate buying spree through his family office Pontegadea, spending more than $500 million in just three months. The spree is driven in part by Spain’s strict wealth tax laws, which compel high-net-worth residents to either spend or lose a sizable portion of their fortune to the state.

Recent acquisitions include a five-star Paris hotel, a Florida apartment complex, and a commercial building on Barcelona’s Diagonal Avenue. Ortega is also in talks to buy Miami’s Sabadell Financial Center for an estimated $275 million. These moves come shortly after Ortega received his largest-ever dividend payout—approximately €3.1 billion—from Inditex SA, the parent company of Zara, where he still holds a 59% stake.

“This is liability management, not trophy-hunting,” said Marc Debois in a Bloomberg report. Debois is the founder of FO-Next, an advisory firm for family offices.

Pontegadea’s portfolio includes high-profile properties in New York, London, Toronto, and Seoul, with major tenants like Facebook, Amazon, and even Zara’s rival H&M. In addition to real estate, Ortega has invested in energy infrastructure and public company stakes to further reduce tax exposure.

The firm’s latest filings show net assets of €34.3 billion, reinforcing Pontegadea’s position as Europe’s largest real estate empire held by an individual investor.

2. Public Worries Mount as Trump’s Tax & Spending Bill Expands Deficit

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Credit: Antenna/Getty Images

A recent AP–NORC poll reveals growing unease over President Trump’s sweeping “One Big Beautiful Bill” (OBBB), which Congress passed earlier this month. About two-thirds of U.S. adults believe the legislation favors the wealthy, and six in ten say it will negatively impact low-income Americans—while half fear the middle class will be worse off.

At the same time, the nonpartisan Congressional Budget Office (CBO) has delivered a sobering analysis: the bill is projected to add $2.8 trillion to the federal budget deficit over the next decade, once economic feedback effects are considered . That figure exceeds the initial CBO projection of $2.4 trillion.

Despite Republicans’ assurances that economic growth will offset these deficits, public sentiment remains skeptical. In the AP–NORC poll, just 38% of respondents approved of Trump's handling of government spending—down from 46% in March—and about 60% across party lines believe the federal government is overspending.

Critics warn the deficit growth could undercut key social programs. While OBBB locks in corporate tax cuts and extends Trump-era provisions, its sweeping Medicaid and food aid cuts raise questions about long-term fiscal responsibility and economic equity.

3. Nearly 99,000 Low-Income Marylanders Eligible for Tax Credits Didn't Claim Them

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Credit: Chip Somodevilla/Getty Images

Maryland Comptroller Brooke Lierman, who currently represents the state's District 46 in the Maryland legislature, revealed that almost 99,000 eligible low-income families failed to claim state Earned Income Tax Credits (EITC) and Child Tax Credits last year, leaving over $100 million on the table. Maryland Matters reports that more than 444,000 taxpayers claimed about $519 million in credits—but Lierman emphasized the unclaimed funds could make a tangible difference for struggling communities. “For these families, an extra $1,100 … can be truly life-changing,” she noted.

This year, Maryland lawmakers approved a $1.2 million appropriation over four years to ramp up outreach on the EITC and state Child Tax Credit. The Comptroller’s office is partnering with the Urban Institute, conducting research to identify demographic groups—such as residents of rural areas, people with disabilities, nontraditional caretakers, and communities of color—who are most often missing out due to awareness gaps, language barriers, or fear around immigration status

As part of the new initiative, Maryland will enhance targeted communication and leverage free tax filing resources to help eligible individuals apply. A full report is expected later this year with recommendations for increasing uptake and equitably distributing support to families statewide.

4. Ohio Lawmakers Push to Override Governor’s Property Tax Vetoes Ahead of Key Deadline

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Credit: Kayla Bartkowski/Getty Images

Ohio House Republicans are preparing to override three of Governor Mike DeWine’s budget vetoes related to property tax reform, with a House vote expected July 21. The vetoed provisions include measures that would allow county budget commissions to reduce voter-approved tax levies, count certain levies toward the state’s 20-mill school funding floor, and restrict what types of levies school districts can pursue.

Per the Ohio Capital Journal, supporters of the override say the move is necessary to deliver immediate tax relief for homeowners. “Our taxpayers … need decreases and they need tax reform now,” said Rep. David Thomas (R-Jefferson). However, not all Republicans are on board. Former House Speaker Jason Stephens warned that overriding the vetoes may not meaningfully reduce property tax burdens, calling the override “a big deal” that could come with unintended consequences.

Democrats have also raised concerns. Rep. Sean Brennan (D-Parma) argued that the vetoed measures risk undermining local school funding and could create more problems than they solve. While lawmakers have been under pressure to act before the November 1 billing cycle, DeWine has convened a bipartisan working group—led by former lawmakers Bill Seitz and Pat Tiberi—to explore broader and more sustainable property tax reform.

Republicans hold 67 of 99 House seats and need at least 60 votes for an override. If the House succeeds, the Ohio Senate is expected to take up the measures later in the week.

5. Trump Weighs Executive Order on NCAA Athlete Employment Status

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Credit: filo/Getty Images

President Trump is reportedly considering an executive order directing the Secretary of Labor and National Labor Relations Board to clarify whether college athletes should be classified as employees, according to a draft obtained by ESPN. This move aims to “maximize the educational benefits and opportunities” provided to student-athletes and set federal standards on their status.

While the draft won’t outright declare athletes as employees, an authority beyond the reach of the executive branch, it echoes the NCAA’s concerns that treating athletes as employees could financially strain athletic departments. It also calls for a commission involving athletes, schools, conferences, lawmakers, and industry experts to preserve collegiate athletic opportunities.

Reaction among athletic leaders and lawmakers has been mixed. Rep. Jim Jordan (R-OH) said the order would underscore—not obstruct—the legislative push currently underway in Congress for similar protections. Louisville football coach Jeff Brohm supported reconsidering athletes as employees to implement a proper salary cap.

This proposal arrives amid ongoing reforms following the historic $2.8 billion House v. NCAA settlement, which allows schools to directly pay athletes—up to $20.5 million per school—starting July 1. An executive order could serve as a stop-gap federal response while Congress moves forward on formal legislation.

Which headline this week most interests you?

Feature Image Credit: Phil Walter/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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