Debt Up. Taxes Down. What Happened?
What Trump’s “Big Beautiful Bill” means for W2 employees, business owners, and real estate investors
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While most people were lighting fireworks over the holiday weekend, Washington passed something that could impact your financial future.
The Big Beautiful Bill slid through Congress in a 51–50 vote. It’s 950+ pages of tax changes, spending shifts, and long-term bets that will reshape how business owners and investors build in America.
I don’t play the left vs. right game. I look at policy through one lens:
How does it impact how I build my companies and real estate portfolio?
Here’s a snapshot of how the Big Beutiful Bill could impact affect your finances.
What Passed (And Why It Matters)
Watch my breakdown of the Big Beautiful Bill passing and what it means for investors and entrepreneurs 👇
If you run a business, invest in real estate, or earn income in your 9-5 job, this bill is worth looking over and making adjustments if needed.
Here’s what’s in:
2017 Tax Cuts Are Now Permanent
This was one of the biggest headlines from the bill and one of the clearest wins for business owners and W-2 earners.
Back in 2017, Trump passed a sweeping tax cut that lowered rates across the board, especially for individuals and pass-through entities (LLCs, S corps, sole props). But that cut was set to expire in 2025, which meant many of us were planning for a tax hike starting next year.
That’s gone now.
The Big Beautiful Bill locks those 2017 rates in permanently, which means:
Lower income tax brackets stay intact
Pass-through businesses (like most real estate investors) keep their deduction
Estate tax thresholds and corporate tax rates won’t snap back
For investors, founders, and high earners running clean books—this is stability. You can forecast forward knowing the rules won’t flip on you next year. That’s a big deal when you're making long-term decisions on depreciation, 1031s, and how much to reinvest in the business.
These were set to expire. This locks in lower brackets for W-2 earners, pass-through entities, and small businesses.
No federal tax on tips or overtime (up to limits)
If you earn through service, labor, or long hours, you now keep more.
Tips up to $25,000 per year: no federal income tax
Overtime up to $12,500 per year: also exempt
$6,000 additional deduction for seniors (65+)
This one’s for parents, the retirees, and the folks who already did their time building.
The bill adds a $6,000 standard deduction for individuals over 65. And with inflation still quietly chewing away at fixed incomes, especially on food, fuel, and housing, that moves the needle.
If you’re 65 or older, this means:
You now get an automatic $6,000 deduction on top of the standard one
That applies whether or not you're still earning income
It’s a real lever for people living off savings, Social Security, or modest pensions
As someone with family in that age group, I can tell you—this isn’t just a political gesture. It’s meaningful cash back for people who aren’t in a position to take on more work.
In a world where inflation isn’t going anywhere, this is one of the few tailwinds they’ve got.
Raised SALT cap deduction
If you’re earning big income in a high-tax state, you’ve felt the pain of the SALT cap.
Under the 2017 tax law, you could only deduct $10,000 of state and local taxes on your federal return. That hit people hard in places like:
California
New York
New Jersey
Illinois
Parts of Connecticut, Massachusetts, and even Minnesota
That cap’s now been raised, helping:
High-income professionals in coastal states
Real estate investors and developers with large state-level tax bills
Anyone paying big in property taxes, local income taxes, or both
This doesn't just lower your taxable income, it makes certain high-income markets more viable again for investors and builders. You don’t have to take such a federal penalty just for being based in a high-tax jurisdiction.
It also shifts some control back to the states. They can raise revenue locally, without it being such a dead weight on your federal tax return.
What Got Cut
Every tax break comes with a tradeoff.
Here’s where the money’s being pulled from:
Medicaid and SNAP (food stamps)
Work requirements are now stricter for able-bodied adults aged 18–54. If you’re not working, you likely won’t qualify for benefits under the new rules.
Clean energy tax credits
These were significantly scaled back. If your business model relied on green subsidies, it’s time to revisit your assumptions.
Where the Money’s Going
This bill adds a lot of spending.
$100 billion for border enforcement through 2029
Includes 10,000 new agents, more detention capacity, and expanded ICE authority.
$150 billion increase in defense spending
More military aircraft, more national security investment, and stronger global presence.
Together, these mark one of the largest military and border allocations in a generation.
The $3.3 Trillion Question
Here’s the headline everyone’s avoiding:
This bill adds $3.3 trillion to the national debt over the next decade.
The administration’s bet? Grow the economy faster than we grow the deficit by bringing manufacturing back, incentivizing job creation, and increasing GDP through domestic production and investment.
As a business owner, I understand the logic.
You can’t cut your way to prosperity. But you also can’t afford to spend without growth.
If the economy grows, this works. If it doesn’t, the next generation is footing the bill.
What This Means If You’re Building Wealth
If you’re earning your income the hard way, building a business, running a job site, managing real estate, or taking risks, this bill leans in your direction.
Winners:
Middle-income earners keeping more from their labor
Seniors protecting their retirement income
Builders and operators reinvesting profits at lower rates
Pass-through businesses avoiding a sunset tax hike
Families thinking generationally with tax-advantaged accounts
Losers:
Non-working individuals relying on public benefits
Clean tech firms dependent on federal credits
Future taxpayers if growth doesn’t match the debt load
My Take
This bill rewards innovation, growth, and risk. It rewards building things in America.
If you’re waiting for permission to grow your business, invest in deals, or take on more ownership, this bill just sent a message: get started.
Washington is friendly to builders.
That’s all for this week!
Marc Kuhn
P.S. If you’re a real estate investor, developer, or business operator who wants to partner on future projects, shoot me a message on LinkedIn. MAK Capital is growing, and we’re always looking for aligned operators.