Bloomberg Daybreak: US Edition Daybreak Holiday: Bank Earnings, Taxes and Candy
Apr 2, 2026
Erin Slowey, Bloomberg Law reporter on tax and IRS staffing. Neil Sipes, Bloomberg Intelligence analyst on capital markets and trading. Herman Chan, senior banks analyst focused on big-bank balance sheets. They discuss bank earnings, how market volatility affects trading and investment-banking revenue, IRS staffing and filing-season impacts, and weakening Easter candy sales and pricing trends.
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IRS Modernization Funding Has Been Clawed Back
- The IRS lacks modern tech and has reduced funding after previous modernization allocations were clawed back.
- Erin Slowey says an $80 billion program has been largely reduced to under $25 billion, hindering digitization efforts.
Lower-Level IRS Morale Is Low
- IRS morale is low at lower levels after staff moves and involuntary reassignments.
- Erin Slowey notes experienced employees were shifted to entry-level processing roles, creating frustration among front-line staff.
Tax Law Front-Loaded Benefits For Big Investors
- The Big Beautiful Bill sped up deductions for R&D and capital, front-loading tax benefits for large, investment-heavy firms.
- Caitlin Riley cites Amazon, Meta, Walmart and Eli Lilly as paying billions less in cash taxes due to accelerated deductions.