February 3, 2025 • 6 mins
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H&R Block CEO Jeff Jones discusses potential tax policy changes under the Trump administration.
Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News. You're listening to Bloomberg
Business Week with Carol Masser and Tim Steneveek on Bloomberg Radio.
Speaker 2 (00:14):
Jeff Jones is president and chief executive officer of H
and R Block. He joins us from Kansas City, Missouri. Jeff,
it's good to have you back with us. How are
you at, Caryl? How are you hi? And how are
you kind of navigating our environment today? And I do
apologize in advance because we may have to interrupt to
go to the White House. But in the meantime, tell
(00:36):
us about today's environment, especially as we keep a really
strong watch on what's coming out of DC. How are
you navigating through?
Speaker 3 (00:43):
Yeah, I appreciate it and fully understand if we got
to cut away. I mean, we are at the beginning
of our most important time of the year, which is
where Americans turn to us for help to get their
tax refund And so you know, much of the conversation
you're having about tariffs and other things don't impact our
business directly, but if they do impact the health of
(01:03):
the consumer, that's where we can step in and try
to help them get the biggest tax refund, get financial
products and things like spruce. But it is a very
very busy time for everyone, and I think we're all
waiting to see kind of what normal becomes.
Speaker 4 (01:19):
What are you seeing from your clients right now? How
is their economic picture looking? You work with certainly a
distinct segment of the US population. How are they doing?
Speaker 3 (01:30):
We do? You know, we do an annual survey with
our consumers, a very very large survey, and in general,
what we've seen is financially they're optimistic. What they've been
worried most about is debt and that's played out in
terms of college debt and other things, credit card debt
for certain But right now what they turn to us
(01:52):
for is to get their tax refund. Remember, for most Americans,
they get a refund and that could be three or
four thousand dollars or more. That's the biggest check they'll
get all year. So right now, what I know most
Americans are waiting on is what's my refund going to be?
And how do I get every dollar possible?
Speaker 2 (02:11):
Would you say consumers? How would you describe them right now?
Speaker 1 (02:15):
Jeff?
Speaker 2 (02:15):
In terms of how they are doing? We saw consumer
spending numbers come out. They came out stronger than expected today,
they're backward looking. If we get tariffs, that could impact things,
especially if companies pass that along. But how would you
describe the consumer, Because you guys see a lot of data,
especially when it comes to I feel like a wide
group of Americans.
Speaker 3 (02:37):
I think if I had to simplify to one single word,
it would be waiting. They have cash, we're seeing spending return.
They do have debt, but they're waiting to see what
this normal is going to be with so many campaign promises,
with all the executive orders that are happening, when we
talk to consumers, they're not sure where things are going
(02:59):
to ultimately settle, and so waiting might be a really
simple word.
Speaker 4 (03:04):
Well, we're waiting for a lot of policies from the President,
and I'm wondering how those policies could affect you and
your clients. The Tax Cuts and Jobs Act that the
President signed back in twenty seventeen, that's set to expire
at the end of this year. How are you looking
at that as affecting the way that you prepare taxes
(03:26):
for folks.
Speaker 3 (03:28):
The big thing that impacts people is just change in
tax policy. And so you know, when you think at
a local level, a state level, and a federal level.
There are changes every single year, and so where consumers
get confused, where they lack confidence is when there's new change.
And so you know, we don't know what ultimately will
(03:50):
happen in terms of policy. We'll wait to see. But
this tax season, right now before April fifteenth, there really
is unlikely to be changes to tax policy that impact
this year. With one exception, and you've probably covered a
lot about ten ninety nine ks and so that is
(04:10):
one big change to tax policy this year, and millions
of Americans are going to get something in the mail
they're not used to getting based on being a local
seller or different thing. So that is one change we're
expecting this year.
Speaker 2 (04:24):
Hey, I am curious about the IRS and what the
Trump administration could do in terms of cutting the budget.
We have done some extensive reporting here at Bloomberg about
the antiquated technology and resources that the IRS has been
dealing with for years, a firing of workers and cutting
back telework, all these different things. What's your read on that,
(04:51):
And I'm just curious if there's the implications for your business.
Speaker 3 (04:54):
Jeff, So, I think it's easy probably for listeners in
viewers today to think more about the IRS in enforcement,
and obviously that's a big part of the job. But
the IRS touches more Americans every year than any other
federal agency, and so we are absolutely supporters of them
(05:15):
getting more modern technology, the right resources to provide customer service.
The number one question that people ask is where's my refund?
But when the IRS doesn't have the resources to answer
the phone to answer that question, H and R block
is the one that gets the phone call interesting. And
so that's where we just know they need modernization, they
(05:39):
need resources, and they need to be able to provide
great customer service for the one hundred and fifty million
Americans that rely on them.
Speaker 2 (05:47):
For this interaction, can you get I'm curious if you
have reached out to the president about this, because you
do have such a great dvantage point, Jeff, for probably
you know a bunch of Americans, probably a fair amount
who voted for Donald Trump. You know, you really kind
(06:08):
of get to Middle America and you get to see
a lot Have you reached out to have a conversation
about the implications for a lot of Americans if indeed
he goes through with some of his plans to cut
the budget and workers possibly at the IRS.
Speaker 3 (06:25):
And we're celebrating our seventieth anniversary this year, which means
we've been through countless administrations, and our teams have definitely
been in touch as the transition teams have been put
in place and now things are getting settled. We have
enjoyed a great relationship with all administrations, Treasury, and IRS
(06:45):
right because our work is so inextricably linked to the
federal and state governments.
Speaker 2 (06:49):
Got it.
Speaker 3 (06:51):
They know we're here and ready to share any insights
we have.
Speaker 2 (06:54):
Jeff Jones ere Champ, thank you so much, President and
Chief Executive Officer of H and R Block
Bloomberg Audio Studios, Podcasts, radio News. You're listening to Bloomberg
Business Week with Carol Masser and Tim Steneveek on Bloomberg Radio.
Speaker 2 (00:14):
Jeff Jones is president and chief executive officer of H
and R Block. He joins us from Kansas City, Missouri. Jeff,
it's good to have you back with us. How are
you at, Caryl? How are you hi? And how are
you kind of navigating our environment today? And I do
apologize in advance because we may have to interrupt to
go to the White House. But in the meantime, tell
(00:36):
us about today's environment, especially as we keep a really
strong watch on what's coming out of DC. How are
you navigating through?
Speaker 3 (00:43):
Yeah, I appreciate it and fully understand if we got
to cut away. I mean, we are at the beginning
of our most important time of the year, which is
where Americans turn to us for help to get their
tax refund And so you know, much of the conversation
you're having about tariffs and other things don't impact our
business directly, but if they do impact the health of
(01:03):
the consumer, that's where we can step in and try
to help them get the biggest tax refund, get financial
products and things like spruce. But it is a very
very busy time for everyone, and I think we're all
waiting to see kind of what normal becomes.
Speaker 4 (01:19):
What are you seeing from your clients right now? How
is their economic picture looking? You work with certainly a
distinct segment of the US population. How are they doing?
Speaker 3 (01:30):
We do? You know, we do an annual survey with
our consumers, a very very large survey, and in general,
what we've seen is financially they're optimistic. What they've been
worried most about is debt and that's played out in
terms of college debt and other things, credit card debt
for certain But right now what they turn to us
(01:52):
for is to get their tax refund. Remember, for most Americans,
they get a refund and that could be three or
four thousand dollars or more. That's the biggest check they'll
get all year. So right now, what I know most
Americans are waiting on is what's my refund going to be?
And how do I get every dollar possible?
Speaker 2 (02:11):
Would you say consumers? How would you describe them right now?
Speaker 1 (02:15):
Jeff?
Speaker 2 (02:15):
In terms of how they are doing? We saw consumer
spending numbers come out. They came out stronger than expected today,
they're backward looking. If we get tariffs, that could impact things,
especially if companies pass that along. But how would you
describe the consumer, Because you guys see a lot of data,
especially when it comes to I feel like a wide
group of Americans.
Speaker 3 (02:37):
I think if I had to simplify to one single word,
it would be waiting. They have cash, we're seeing spending return.
They do have debt, but they're waiting to see what
this normal is going to be with so many campaign promises,
with all the executive orders that are happening, when we
talk to consumers, they're not sure where things are going
(02:59):
to ultimately settle, and so waiting might be a really
simple word.
Speaker 4 (03:04):
Well, we're waiting for a lot of policies from the President,
and I'm wondering how those policies could affect you and
your clients. The Tax Cuts and Jobs Act that the
President signed back in twenty seventeen, that's set to expire
at the end of this year. How are you looking
at that as affecting the way that you prepare taxes
(03:26):
for folks.
Speaker 3 (03:28):
The big thing that impacts people is just change in
tax policy. And so you know, when you think at
a local level, a state level, and a federal level.
There are changes every single year, and so where consumers
get confused, where they lack confidence is when there's new change.
And so you know, we don't know what ultimately will
(03:50):
happen in terms of policy. We'll wait to see. But
this tax season, right now before April fifteenth, there really
is unlikely to be changes to tax policy that impact
this year. With one exception, and you've probably covered a
lot about ten ninety nine ks and so that is
(04:10):
one big change to tax policy this year, and millions
of Americans are going to get something in the mail
they're not used to getting based on being a local
seller or different thing. So that is one change we're
expecting this year.
Speaker 2 (04:24):
Hey, I am curious about the IRS and what the
Trump administration could do in terms of cutting the budget.
We have done some extensive reporting here at Bloomberg about
the antiquated technology and resources that the IRS has been
dealing with for years, a firing of workers and cutting
back telework, all these different things. What's your read on that,
(04:51):
And I'm just curious if there's the implications for your business.
Speaker 3 (04:54):
Jeff, So, I think it's easy probably for listeners in
viewers today to think more about the IRS in enforcement,
and obviously that's a big part of the job. But
the IRS touches more Americans every year than any other
federal agency, and so we are absolutely supporters of them
(05:15):
getting more modern technology, the right resources to provide customer service.
The number one question that people ask is where's my refund?
But when the IRS doesn't have the resources to answer
the phone to answer that question, H and R block
is the one that gets the phone call interesting. And
so that's where we just know they need modernization, they
(05:39):
need resources, and they need to be able to provide
great customer service for the one hundred and fifty million
Americans that rely on them.
Speaker 2 (05:47):
For this interaction, can you get I'm curious if you
have reached out to the president about this, because you
do have such a great dvantage point, Jeff, for probably
you know a bunch of Americans, probably a fair amount
who voted for Donald Trump. You know, you really kind
(06:08):
of get to Middle America and you get to see
a lot Have you reached out to have a conversation
about the implications for a lot of Americans if indeed
he goes through with some of his plans to cut
the budget and workers possibly at the IRS.
Speaker 3 (06:25):
And we're celebrating our seventieth anniversary this year, which means
we've been through countless administrations, and our teams have definitely
been in touch as the transition teams have been put
in place and now things are getting settled. We have
enjoyed a great relationship with all administrations, Treasury, and IRS
(06:45):
right because our work is so inextricably linked to the
federal and state governments.
Speaker 2 (06:49):
Got it.
Speaker 3 (06:51):
They know we're here and ready to share any insights
we have.
Speaker 2 (06:54):
Jeff Jones ere Champ, thank you so much, President and
Chief Executive Officer of H and R Block
Hosts And Creators
Tim Stenovec
Carol Massar
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