>>IRS Planning More Audits
(Washington, DC) -- The IRS is planning to increase audits on large corporations and wealthy individuals. The agency has nearly 80-billion-dollars in new funding from the 2022 Inflation Reduction Act. Some of that money will be used to crank up the number of audits on corporations with assets of more than 250-million-dollars as well as people with income of more than 10-million-dollars. The agency says there will be no increase in audits for people earning less than 400-thousand-dollars a year.
>>Inflation Squeezing Lower-Income Consumers The Most
(New York, NY) -- The long-predicted consumer pull back is finally here with many brands reporting a decrease in same store sales. McDonald's said it has adopted a "street-fighting mentality" to compete for value-minded diners. Starbucks announced a surprise drop in same-store sales, while Pizza Hut and KFC also reported shrinking same-store sales. For months, economists have been predicting that consumers would cut back on their spending in response to higher prices and interest rates, but it's taken a while to see sales actually shrink. Prices to eat out are up five-percent in March compared to a year-ago, while prices for groceries have increased more slowly, according to the Bureau of Labor Statistics.
>>Southwest Required To Offer Travel Vouchers For Cancellations, Delays
(Dallas, TX) -- Southwest Airlines will be required to offer 75-dollar travel vouchers for certain cancellations and delays. This comes after the company suffered what some call a "holiday meltdown" in 2022. The U.S. Transportation Department announced this week the airline will need to give compensation as part of a deal reached after the incident that "stranded millions of passengers across the country." Flyers can get a Southwest LUV voucher if their flight is cancelled or delayed within a week of departure or if they arrive three or more hours later than planned. However, they are not eligible for the voucher if the flight is affected by factors out of the airline's control, like weather.
>>Ford Sales Drop In April
(Dearborn, MI) -- Sales at Ford Motor Company dropped in April overall but hybrid sales set a monthly record. The automaker sold over 179-thousand cars and trucks with sales of the popular F-Series trucks. Broncos and SUV's falling off. Ford says they remain committed to hybrid vehicles and plans to have an entire lineup by the end of the decade. Sales of EV were up by 129-percent over last year but still are not meeting expectations. SUV sales declined by nearly ten-percent in April and Ford said they will be increasing incentives for customers.
>>Peloton's CEO Steps Down As Company Lays Off Staff
(New York, NY) -- Peloton's CEO is stepping down as the company cuts 400 jobs worldwide. The exercise bike giant went through a boom during the pandemic when people were stuck at home, but sales have dropped dramatically since then. It also plans to close retail showrooms and overhaul its international sales plan. A news release says the move is expected to cut annual expenses by more than 200-million by the end of 2025.
