Rational Reaction - One Big Beautiful Bill- Facts and Opinions
Last month, I mentioned that I would share details on the One Big Beautiful Bill (OBBB—yes, that’s the actual name) once it had been passed. Since the bill was enacted between newsletter issues, now is the appropriate time to provide that update.
If you follow the link below, you’ll find a breakdown of the bill in two main sections: facts and opinions. I begin with a straightforward summary of what the bill includes, followed by my views on both its strengths and weaknesses—because it certainly has both.
I hope you find this overview helpful and informative.
One Big Beautiful Bill (OBBB): Facts, Myths & Opinions
The word “big” in the title of this bill is no exaggeration—it truly is substantial. As such, I want to take the time to clearly present both the factual contents of the bill and my perspective on its merits.
The section outlining the facts is intentionally brief (considering the bill is over 900 pages). Because most readers are clients—and we are already closely monitoring your specific financial situation—you likely don’t need an in-depth review of every detail. That said, if you’re interested in exploring the bill further, you’ll find links at the end of this article that provide more comprehensive information.
I recognize that the opinion section may be the more contentious aspect, so I’d like to offer some context. My analysis is grounded in a consistent economic philosophy, rather than influenced by which political party happens to be in power. This differs from the more common approach, where opinions often shift based on partisan alignment rather than underlying principles.
With that in mind, you can expect to hear both praise and criticism in my assessment—because, in my view, the bill contains elements of both.
🔍 Key Facts: What the OBBB Includes
1. Permanent Lock-In of Key Tax Cuts
The bill makes the core provisions of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, including lower tax brackets and expanded standard deductions, adjusted annually for inflation.
SALT deduction cap temporarily increases from $10,000 to $40,000 for married couples earning under $500,000. This provision phases out and reverts in 2030.
2. New Tax Breaks Through 2028
Employees can deduct up to ~$25,000 in tips and ~$12,500 in overtime—without needing to itemize.
A new car-loan interest deduction (up to $10,000) applies to U.S.-assembled vehicles.
3. Enhanced Credits and Deductions
The Child Tax Credit increases to $2,200–$2,500 (depending on source).
Seniors (65+) receive an additional $6,000 standard deduction through 2028.
4. Business Incentives
Permanent 100% bonus depreciation for equipment and R&D through 2029.
1099-NEC reporting threshold raised from $600 to $2,000—easing administrative burden.
Enhanced deduction of corporate interest expense
100% expensing of factory construction
5. Spending Restraints
Delays in planned increases for Medicaid and student loan subsidies.
Clean energy credits for EVs and solar are rolled back.
6. Trump Accounts for Newborns
Every U.S.-born child (2025–2028) will receive a $1,000 federally seeded, tax-deferred custodial investment account.
Families can contribute up to $5,000 annually, and funds grow tax-deferred until adulthood.
✅ What PlanWiser Supports
1. Permanent Tax Cut Extensions & Simplification
Locking in the TCJA-era tax rates provides long-term planning certainty. This aligns with PlanWiser’s belief that lower, predictable taxes allow individuals and businesses to allocate capital productively—spurring economic growth and personal agency.
2. Pro-Growth Business Incentives
Provisions such as 100% bonus depreciation, expanded small business stock benefits, and childcare credits encourage investment and innovation. These free-market measures reflect PlanWiser’s confidence in private-sector leadership to drive prosperity.
🚫 Where PlanWiser Has Concerns
1. The National Debt Trajectory
While many provisions aim to stimulate growth, there is no way it could offset the projected $3–4 trillion addition to the federal deficit, which poses serious long-term risks. With debt already exceeding $36 trillion and expected to rise significantly, this represents a missed opportunity to restore fiscal discipline.
2. Complexity and Lack of Transparency
At nearly 900 pages, the OBBB spans tax, healthcare, immigration, energy, and more. Such sweeping, multifaceted legislation introduces bureaucratic complexity that often benefits those with the resources to navigate it—leaving everyday Americans at a disadvantage. PlanWiser strongly prefers clarity and transparency in tax policy.
💬 Our Bottom Line
The OBBB offers meaningful wins: permanent tax relief and enhanced incentives for business investment. But it also introduces fiscal risks and legislative complexity that warrant caution.
As always, we are here to help you interpret how these changes affect your personal financial plan and to make thoughtful adjustments where needed.
References:
https://www.kiplinger.com/taxes/trump-pushes-for-one-bill-with-focus-on-tax-cuts)
https://blog.taxact.com/one-big-beautiful-bill-act/
https://www.kiplinger.com/taxes/trump-pushes-for-one-bill-with-focus-on-tax-cuts
https://moneyweek.com/economy/us-economy-donald-trump-one-big-beautiful-bill-consequences
https://thebahnsengroup.com/dividend-cafe/a-referees-take-on-the-big-beautiful-bill-july-11-2025/
Ways and MeansTaxAct Blog+1Intuit Accountants+1.
Legal United States+1Ecoinimist+1.
indiatimes.com+2en.wikipedia.org+2pwc.com+2Legal United States+1New York Post+1.
PlanWiser Financial, nor any of its members, are tax accountants or legal attorneys, and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional. Tax services are offered independently through PlanWiser Tax. This is being provided for informational purposes only and should not be construed as a recommendation to buy or sell any specific securities. Past performance is no guarantee of future results, and all investing involves risk. Investment advisory services offered through PlanWiser Financial, LLC, a Registered Investment Adviser.