The House of Representatives has delivered a legislative masterpiece that’s part tax reform, part economic stimulus, and part Rorschach test for your political leanings. Clocking in at 1,116 pages of fiscal fireworks, the “One Big Beautiful Bill” reads like a love letter to accountants and a horror novel for deficit hawks.
Please remember that this bill is not law yet, so everything that follows is fiction and should not be relied upon at this time.
Let’s dissect this fiscal piñata and see what goodies (or grenades) fall out.
Individual Tax Provisions: Where “Trickle Down” Meets “TikTok Money”
The 2017 Tax Cuts’ Immortality Serum
The bill makes the Trump-era tax cuts permanent, sparing Americans from a scheduled 2026 expiration that would’ve seen rates snap back like a rubber band. The top individual rate remains at 37%, while the standard deduction gets a glow-up to $26,000 for joint filers.
Tip Your Server (and the IRS)
In a move that’ll make Las Vegas cocktail waitresses cheer, tips and overtime pay get a full tax exemption through 2028. The provision benefits workers earning under $160,000 annually, effectively creating a new class of tax-free income.
SALT Shaker Twists
The bill raises the state and local tax (SALT) deduction cap to $40,000—but with a catch. The sweet spot? Single filers under $200K and couples under $400K. Go one dollar over, and the cap plummets to $10,000.
Business Bonanzas: Because Corporations Are People Too
Small Business Safari
The Qualified Business Income (QBI) deduction jumps from 20% to 23%, letting Main Street shops keep more cash.. The National Federation of Independent Business predicts this alone could create 1 million new jobs annually.
Bonus Depreciation: The Sequel
Remember the 2017 policy letting businesses immediately deduct equipment costs? It’s back with a vengeance at 100% through 2030. The kicker? Now includes commercial real estate improvements.
R&D Renaissance
Companies can once again fully deduct R&D costs annually instead of amortizing them.
Estate Planning: From Trust Funds to Trump Bucks
Dynasty Building 101
The estate tax exemption skyrockets to $15 million per individual (indexed for inflation). The GST tax exemption mirrors the new estate limits.
International Intrigue: America First, Tax Dodgers… Well, Maybe Second
GILTI as a Four-Letter Word
The bill permanently extends the 50% deduction for Global Intangible Low-Taxed Income (GILTI), because nothing says “patriotic tax policy” like letting multinationals pay 10.5% on foreign profits.
BEAT Goes On
The Base Erosion Anti-Abuse Tax (BEAT) rate stays at 10%, a gentle wrist slap for companies that try too hard to emulate their Cayman Islands cousins.
The Fine Print: Where Devils and Lobbyists Dance
Medicaid Mayhem
To offset part of the $4 trillion price tag, the bill implements stricter work requirements for Medicaid.
Green Energy Guillotine
The bill axes Biden-era clean energy credits faster than you can say “peak oil”.
Debt Ceiling Déjà Vu
Buried on page 872: a $4 trillion debt ceiling increase. It’s the legislative equivalent of maxing out your credit card to buy another credit card.
The Bottom Line: Who Wins, Who Loses, and Who Needs a Calculator
Winners:
- The 1%: Top earners see incomes rise 4% by 2033
- Small Businesses: 23% QBI deduction could boost profits 18%
- Estate Planners: Bill creates new planning opportunities for estates and trusts
Losers:
- Budget Hawks: $3.1 trillion added to deficit
- Low-Income Families: Bottom 10% lose 4% income by 2033
- College Endowments: Taxed at corporate rates if over $1 billion
As the bill shuffles to the Senate, expect more changes and drama. We’ll keep you posted as this legislation evolves to see if this “beautiful” bill grows roses… or thorns.
