Financial Insights Into What the Big Beautiful Bill Could Mean for You
8/19/2025 - By Joe Beach, JC, CPA - Wealth Insights and Stories | SouthState Wealth
To help make sense of the details, we sat down with Joe Beach, JD, CPA, Wealth and Fiduciary Advisor at SouthState, to explore the bill’s provisions and how they could affect financial decisions in the months ahead.
What’s in The Big Beautiful Bill?
This legislation passed largely along party lines with Vice President Vance casting the tie-breaking vote in the Senate. The 870-page bill builds on components of the 2017 Tax Cuts and Jobs Act and introduces both temporary and permanent changes.- No increase to income tax brackets, maintaining current rates.
- Increase in the State and Local Tax (SALT) deduction cap from $10,000 to $40,000.
- Enhanced deduction for seniors over 65: $6,000 annually from 2025–2028, with phase-outs for high earners.
- Phase-outs for certain deductions, including SALT, will begin in 2025 for taxpayers with modified adjusted gross income over $500,000.
- 100% bonus depreciation reinstated for property acquired after January 19, 2025, allowing immediate deduction of the full cost and improving business cash flow.
- Estate tax exemption set at $15 million starting in 2026 and permanently indexed for inflation. The 2025 exemption remains at $13.99 million, but it was previously scheduled to drop by roughly half.
- Expanded child tax credits and the creation of newborn investment accounts, informally called “Trump Accounts”.
- Deductibility of car loan interest for American-made vehicles.
- Beginning in 2026, charitable deductions will become available to non-itemizers, up to $1,000 for single filers and $2,000 for married couples filing jointly. For itemizers, the contribution must exceed 0.50% of their adjusted gross income to qualify.
“These changes open up opportunities for planning,” Joe explained. “For business owners, the reinstated bonus depreciation alone can free up significant cash. And the enhanced senior deduction puts more money in the hands of a growing demographic.”
The Broader Economic and Social Picture
While the bill is designed to incentivize saving, spending, and investing, it also includes updates to areas where public opinion is more divided: federal programs and the national budget outlook.- A 20-hour-per-week work requirement was added for certain individuals to maintain eligibility for Medicare and other social programs, with exceptions in place.
- Food assistance programs were modified to include similar work-based eligibility standards.
- Critics argue these measures could restrict access to essential services for vulnerable groups, while supporters say they restore prior eligibility rules and encourage workforce participation.
In addition, the federal debt ceiling was raised by $5 trillion, and the Congressional Budget Office estimates that the bill will significantly increase the national deficit over the next decade.
“The legislation attempts to stimulate economic growth,” Joe said, “but there are long-term trade-offs that people should be aware of, particularly around the federal debt and potential future pressure on entitlement programs.”
What This Means for Business Owners
For business owners, one of the most impactful provisions is the return of 100% bonus depreciation. If property or qualifying equipment is acquired after January 19, 2025, the full cost can be written off in the first year.“This isn’t just about tax savings, it’s about having cash flow again,” Joe said. “That flexibility can be a game-changer for businesses looking to invest, expand, or even just find stability during economic uncertainty.”
Estate Planning: A Rare Moment of Certainty
Another standout provision is the permanent estate tax exemption of $15 million starting in 2026, indexed for inflation moving forward.
“This is a big deal for families thinking about wealth transfer,” Joe explained. “The estate tax exemption has been a moving target for years. Having a fixed number, especially at this level, gives families something solid to plan around.”
Without this legislation, the exemption was set to be cut in half starting in 2026, which could have potentially triggered new estate tax liabilities for high-net-worth households.
Why Now Is the Time to Meet with Your CPA
Although the bill is brand new, Joe says now is the perfect time to sit down with your financial advisor or CPA. “Tax planning shouldn’t start in December, it should start now. You want to know what moves to make in 2025 before it’s too late,” he said. “I had a client meet with their CPA in June and they said it was the first time they’ve ever done that. I was shocked but impressed.” He also emphasized that while some provisions are permanent, others, like the car loan interest deduction, expire in 2028, and the SALT deduction cap reverts back in 2030. “Don’t build your long-term plan on temporary rules. Plan for flexibility.”
Final Advice: Be on the Informed Side
Joe wrapped our conversation with one simple but powerful reminder: “There’s an old court case that says there are two tax systems in America: one for the informed and one for the uninformed. We’re here to make sure our clients stay on the informed side.”
What You Can Do Next
- Connect with your financial advisor to see how the bill impacts your 2025 strategy
- Review your current deductions to identify new opportunities
- Start early – the sooner you plan, the more options you’ll have
- Consider long-term vs short-term provisions when making big decisions
At SouthState, we’re here to help you navigate these changes with confidence and clarity. If you have questions about how this legislation affects your financial future, reach out to your advisor. We’re ready to guide you forward.
