A new biannual survey shows some perceptions of the economy are improving.

The Center for Audit Quality's fall 2022 Audit Partner Pulse Survey found almost 60% of audit partners expressed pessimism for the U.S. economy. However, the group's more recent fall 2023 survey showed overall pessimism dropped to 27%.

Julie Bell Lindsay, CEO of the center, explained audit partners are present in all public companies in the country. They are responsible for understanding risks and pressures affecting businesses and the industries they operate in.

"Certainly the economic outlook is stronger than a year ago," Lindsay noted. "But auditors still see the potential for inflation, while it is falling, to have a significant impact on business operations over the course of the next year."

Lindsay added almost 70% of auditors see what she calls "inflationary effects" hitting business for longer than 12 months. She asserted businesses are being heavily affected by the country's current regulatory environment, with a majority saying the effects have been negative, citing additional costs associated with compliance with new rules.

Lindsay acknowledged despite the various challenges plaguing the business community from cybersecurity to learning how to better handle artificial intelligence, the country finds itself in what she terms a "relatively strong position."

"The U.S. continues to have, I would say, the most liquid and strong capital markets in the world," Lindsay contended. "We are not without our challenges, but we seem to be coming out of the pandemic and an inflationary cycle in a fairly strong position."

According to the survey, companies' top three priorities are cost management, financial performance and overall growth. Lindsay noted while artificial intelligence was lower on the list of companies' priorities, it is high on their list of challenges because of data quality concerns and data security risks.

Lindsay added companies across the country are also experiencing a shortage of accounting and auditing professionals.

"It is not just getting talent into the companies," Lindsay stressed. "When you have less talent, that means the existing talent has to take on additional responsibilities and that can hurt retention."

While half of companies are focused on upskilling, the survey found one in three is working to increase compensation and workplace flexibility for current employees.


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President Joe Biden was in Wisconsin on Wednesday, touting plans for a new Microsoft data center. The visit comes amid new polling data in battleground states about what is on the minds of rural voters, with organizers noting surprising results.

The poll, released by the Rural Democracy Initiative, included feedback from Wisconsin voters. Among respondents, 57% said they favored a more economic populist vision, with policies centered around lowering costs and raising incomes for the working class.

Patrick Toomey, researcher and partner of Breakthrough Campaigns, said the approach appears more popular than one often touted by GOP politicians.

"Just cutting taxes and getting rid of regulations is not going to do the most to help me in this economy," Toomey explained.

While economic policies aligned with Democrats, such as minimum-wage hikes, are favorable in this poll, many rural voters indicated they think Republicans are doing more for working people. Analysts said it shows Democrats have work to do to rebuild trust in these areas. Meanwhile, three-quarters of respondents either support the right to abortion or do not want the government interfering with decisions on reproductive health care.

Toomey acknowledged it will take some time for Democrats to re-connect with voters and it will not completely turn around in this election cycle. But he suggested it is not completely hopeless for the party to make gains in rural America ahead of November's vote.

"One of the key learnings here is that there are enough voters in rural areas of battleground states who are up for grabs to determine the outcome for 2024," Toomey reported.

He suggested if Democrats are savvy with their outreach, they might be able to convince rural populations they are pursuing policies voters have outlined as a top priority.

More than 1,700 voters in 10 states were part of the poll. As for Biden's appearance, it was at the same location as the failed Foxconn project announced by former President Donald Trump several years ago.

On this May Day, Wisconsin groups are rallying in Green Bay to highlight a key issue facing the working class: the ability to retire.

Organizers see fixing systemic issues within Social Security as a key step. The American Federation of Government Employees is co-leading demonstrations around the state, calling on Congress to fully fund Social Security.

Jessica LaPointe, president of the American Federation of Government Employees Council 220, said although the debate has been around for a while, the problems run deep right now, with chronic underfunding resulting in staffing woes at field offices.

She noted staffers are dealing with added stress and beneficiaries feel the impact.

"Service delays are far and wide," LaPointe observed. "It could take more than four months to start your retirement benefits up."

She emphasized it is especially concerning for vulnerable populations at retirement age. Beyond helping with administrative costs, demonstrators want federal lawmakers to come up with long-term funding solutions, amid predictions the program won't be able to provide full benefits a decade from now. Some Republicans have routinely floated cuts but critics of the idea say any future shortfalls should be covered by higher earners.

One recommendation is to adjust the cap on Social Security taxes, but opponents warn of unintended consequences.

Alex Brower, executive director of the Wisconsin Alliance for Retired Americans, which is also supporting the rallies, said retirees on fixed incomes deserve full and expanded benefits for dedicating their working lives to propping up the economy.

"We wouldn't have the schools that we have or any of the systems in our economy without working people," Brower pointed out. "When those working people retire, we are demanding that retirement be dignified."

He added May Day observances, which center around worker solidarity, are a good way to remind policymakers the working class should not fall into poverty when they retire. Similar rallies are scheduled throughout the month.

Proposed regulations in Michigan could have a major impact on the state's tourism industry. The series of 10 bills introduced by House Democrats would do more to regulate short-term rentals.

The proposals include a 6% tax on rentals of 15 days or more, increased safety requirements for things like smoke alarms and carbon monoxide detectors, and a $100 annual registration fee per listing.

Erika Farley, executive director of the Rental Property Owners Association of Kent County, said she has concerns - especially about the additional tax.

"We are looking for more parity along with the hotel industry, basically," said Farley. "The 6% excise tax, along with the other taxes, would actually be a higher tax - anywhere between 5% and 7% for short-term rentals - than it would for an actual, traditional hotel."

Farley added that short-term rentals aren't just for tourists - they're also an affordable option for professionals who need a temporary place to stay while in town on business.

In New Buffalo, a lakefront community with a population of about 1,800, Mayor John Humphrey said he doesn't agree with every aspect of the bills - but he's all for taxing short-term rentals.

Humphrey said his community has suffered for year due to what he calls the "gigantic" unrecovered tourism costs generated by these rentals - including negative affects on roads, sewer, water, and other public infrastructure.

"Every short-term rental has a residential use of 10 - residential use means the number of people that use the home - where a standard residence is only 2.2," said Humphrey. "And those costs are not recovered because there are no excise taxes, there are no use taxes, there are no lodging taxes on short-term rental."

If passed, the legislation could generate between $35 and $70 million. Backers say that money would be distributed to the local governments where the rental properties are located.

The bills have been referred to the Committee on Local Government and Municipal Finance.