πŸš€ Is AI eating my lunch or not?, Trump Accounts, and Housing breaks a cycle



Romeo Razi, CPA

July 13th

πŸš€ Is AI eating my lunch or not?

For the past few years the same people that brought you, "Truck Drivers need to learn to code", have started beating a new drum:

"White-collar wageys needed to head to the breadlines", because the Silicon Valley priesthood believe that they are headed for the same fate as the horse & buggy.

Master Dario and Scam Altman have both been sounding the alarm that the Machines are marching one by one (hurrah, hurrah) ... I mean, until they weren't.

Last week Ramp (the bad-a$$ credit card company) went out on a limb, ran the numbers, and looked at what companies were actually paying for.

The Silicone Valley priesthood has yet to comment.

The Deets:

↳ 🧾 The Ramp paper: Ramp's economics lab shared its firm-level AI spending data with Revelio Labs' workforce records across 21,559 U.S. companies. Not a survey. Receipts.

↳ πŸ“ˆ The finding: Heavy AI adopters grew headcount about 10% in the two years after adoption. Entry-level headcount grew 12%. Light adopters saw nothing statistically meaningful.

↳ ⏳ The kicker: Gains showed up 6–12 months after adoption, and extended beyond engineering into sales, admin, finance, and customer service.

πŸ“‰ Now For The Fine Print

↳ πŸ›οΈ The Medici rule: Faster-growing companies are still hiring people. This has been true for six centuries.

↳ βš–οΈ The caveat Ramp printed themselves: It's correlation, not causation. AI adopters were already bigger, faster-growing, and more technical before they touched an AI model, so it's possibly not correlated.

↳ πŸŽ“ The other data: ADP's numbers show a ~16% employment decline for 22-to-25-year-olds in the most AI-exposed roles, and tech and finance are shedding ~28,000 jobs a month.

Meanwhile in the πŸ”₯ boiler room

While the mid-market quietly spends about $400 per employee per year on AI (lunch money for SMBs), the true believers have been setting their money on fire.

  • Uber incentivized adoption with internal leaderboards, then watched 84% of its engineers pile into Claude Code, and torched its entire 2026 coding budget by April.
  • Microsoft yanked Claude Code licenses from a division because the bills stopped making sense.
  • Walmart rationed its own in-house tool.
  • Accenture, having threatened employees with stalled promotions if they didn't use AI, now begs them to stop using it to turn PDFs into slides.

Somewhere, someone, at some company, reportedly ran up a $500 million bill in a single month because nobody set a cap.

Nero had a fiddle 🎻. These people have an API key πŸ”’.

🍿What's this mean for the rest of us?

Maybe the robots aren't taking the jobs.

They are just rent seeking the IT budget, for the Frontier AI labs.


πŸ‘Ά Trump Accounts (i.e. free money for newborns)

Trump Accounts went live on July 4th.

Here's what you need to know:

  • Open an account for a child under 18, and if that child was born between January 1, 2025, and December 31, 2028, the Treasury drops in $1,000.
  • Bank of New York Mellon custodies it.
  • Robinhood built the app.
  • The money goes into U.S. stock funds and sits there, untouchable, until the kid turns 18 and it converts into a plain-vanilla traditional IRA.
  • More than 6 million accounts have been opened.

Somewhere, Ben Franklin is smiling (after all, he did leave Β£1,000 each to Boston and Philadelphia with instructions not to touch it for 200 years, and the man made out.)

πŸ“‹ The Mechanics

↳ πŸŽ‚ Who gets the $1,000 (seed money): U.S. citizens with a valid SSN, born 1/1/2025 through 12/31/2028.

↳ πŸ§’ Who gets an account (but no seed): Any child under 18 with a valid SSN. A parent, legal guardian, adult sibling, or grandparent can open it. One account per child no doubling up.

↳ πŸ“ How to apply: Submit IRS Form 4547, either with your 2025 return or through your IRS online account. Or go to TrumpAccounts.gov.

🀷 My Thoughts

If you just had a kid, take the free thousand. It's yours, the form is one page, and refusing it on principle just leaves money with the Treasury.

Remember, Franklin waited two centuries πŸ—½.

Your kid only has to wait eighteen years πŸ‘ΆπŸ».


🏠 Housing Corner

Check out what's happened here:

For the first time ever, the number of 6%+ mortgages is more than 3% mortgages. And the spread is only going to get wider from here.

The rest of housing corner:
​

πŸ’Ή

Interest Rates


6.87%

🏑 🏑 🏑
Inventory


844,011

🧊

Days on Market


63 days

Here's a quick list of the housing stats over the last 1 weeks:
​
🏠 Mortgage rates: 6.87% (up a few bps)
πŸ“ˆ Inventory: 844,011 homes (up sellers, less buyers)
πŸ“‰ Price reductions? 39.57% (more people lowering their prices)
πŸ’° Median list price? $449,900 (same)
πŸ•°οΈ Median days on market? 63 (longer on the market).

​

Market Highlights this week

Tech and S&P are up


~ S&P 500 $7,515 (+0.72%)

~ Nasdaq $25,873 (+0.61%)

BTC, Gold, & Silver still buggin'


~ Gold $4,009 (-2.44%)

~ BTC $61,982 (-1.17%)

~ Silver $57.98 (-3.51%)

​

🚨Upcoming Tax Deadlines you should be aware of:
​
πŸ—“July

  • July 31st - 5500 Pension Tax Returns Due.
  • Your 401k company handles that, unless you have a solo 401k

πŸ—“Aug

  • Nothing. You cool.

πŸ—“Sept

  • Sept. 15th - 3rd Quarter Estimated Tax Due
  • Sept 15th - S-Corporation and LLC partnership Tax Returns Due
​

What's been going on with your Favorite CPA

​

I made a quick appearance in Vegas to check on some stuff and to see British comedian Jimmy Carr. I highly recommend.

Dmitry and I are still chugging along with our IRSResolutionService.com website.

Once again, if you know anyone with IRS issues, please send them to our way.


Talk to you guys a in few weeks ❀️

Romeo Razi, CPA

​Taxedright.com​

​

600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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