Big Benefits in the One Big Beautiful Bill
Opening Opportunities for independent, main street, businesses.
The tsunami of misinformation, obfuscation and lies over the One Big Beautiful Bill are distractions. In fact, the bill is loaded with benefits for working Americans and the small, independent business sector.
This is a pro-growth bill, it is founded in a strategy designed to accelerate small business growth. The accelerated growth is expected to generate more than enough revenue to the government to begin to reduce the national debt, this contrary to many of the media pundits
Many government economists, bureaucrats & many academic types don’t seem to understand the growth dynamics. Frankly, many people don’t seem to have the intuitive skills to understand cause and effect of taxes on private business.
Trump and his economic team see how this bill will create a more vibrant economy that empowers small businesses, increasing opportunities, customers, and earnings for Main Street businesses. The President’s Council of Economic Advisers estimates that over the next four years, the bill will increase real economic growth by up to 5.2 percent, create or save up to 7.4 million full-time American jobs, increase investments by up to 14.5 percent, and boost wages by $11,600 per worker.
Here is a partial list of key benefits for small independent businesses.
1. Increased Pass-Through Deduction
The bill raises the small business tax deduction from 20 percent to 23 percent.
2. Permanent Individual Tax Rate Reductions
The bill makes the individual tax rate cuts from the 2017 Tax Cut and Jobs Act (TCJA) permanent, including top marginal rates, ensuring a continued lower tax burden for the 95 percent of small businesses that file as pass-throughs, including successful small businesses.
3. Restoration of 100 Percent Bonus Depreciation
The legislation reinstates 100 percent immediate expensing for capital investments, allowing small businesses to immediately deduct the full cost of equipment and property, encouraging reinvestment, expansion, and modernization that will boost productivity and help small business manufacturers and contractors.
4. Enhanced R&D Expensing
The bill similarly allows small businesses engaged in domestic research and development immediate expensing of R&D costs, which many small businesses need to stay ahead of foreign competition, promoting innovation and growth.
5. No Tax on Tips and Overtime Pay
The bill exempts tips and overtime pay from federal income tax, providing relief to small businesses in service industries and their employees, as well as boosting the gig economy that’s a growing part of the American small business ecosystem.
6. Expanded Standard Deduction
The bill boosts the standard deduction, simplifying tax filing and reducing taxable income for small business owners.
7. Support for Domestic Manufacturing
The bill includes tax credits and deductions tied to domestic content and U.S. employment, designed to encourage companies to produce in the U.S. rather than offshore.
8. Simplified Tax Code
The bill streamlines and simplifies the tax code, promoting standard deduction use over itemizing, making investment and business tax planning easier, and reducing or removing provisions that caused complexity, allowing small businesses to file their taxes faster and easier.
With the passage of the One Big Beautiful Bill behind us and Trump’s trade negotiation deadline less than a week away, there will be lots of changes, positive changes, to keep us busy for the next several months.