The Big Beautiful Bill: What's Really Inside and Who Still Gets Burned

When the newest tax overhaul—nicknamed the "Big Beautiful Bill"—started gaining traction, it came with bold promises: simplicity, permanence, and relief for working families and small business owners. And in some ways, it delivers. But like most things coming out of Washington, the marketing is smoother than the mechanics.

For high earners, small business owners, and professionals in high-tax states, this bill is a mixed bag—one that fixes some past wrongs but leaves several glaring inequities firmly in place.

1. Individual Tax Cuts: Now Permanent, But At What Cost?

One of the headline changes: the individual tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) are now permanent. That means lower tax brackets and the larger standard deduction aren't set to expire in 2025 anymore—they're here to stay.

This brings long-term clarity for families and business owners alike, but also locks in structural imbalances. While corporations received their permanent rate cuts years ago, individuals are only now getting that same certainty. The question is: what happens when the budget shortfall comes due?

2. SALT Deduction: Still Capped, Still Problematic

Despite strong lobbying from high-tax states, the State and Local Tax (SALT) deduction remains capped at $10,000 under the Senate version of the bill. The House attempted to raise it to $40,000 for incomes under $500,000, but negotiations fell short.

The cap on SALT deductions continues to penalize taxpayers in states like New York, California, and Illinois—effectively forcing them to pay federal tax on income already taxed at the state level. That’s not simplification; it’s double taxation, and it remains one of the bill’s most controversial holdovers from the TCJA.

3. The QBI Deduction: Permanent, But Still Unequal

The 20% Qualified Business Income (QBI) deduction—originally a temporary provision— has now been made permanent. That’s a big win for pass-through business owners, such as LLCs, S Corps, and sole proprietors.

However, not all businesses benefit equally. Service-based businesses—think consultants, doctors, advisors, and attorneys—still face income-based phaseouts starting at $182,100 (single) or $364,200 (joint). So while the deduction remains, many successful small business owners are still locked out of a benefit that large corporations and capital intensive firms can fully enjoy.

This remains one of the biggest disconnects in the tax code: a small service business pays

tax on every dollar earned, while large corporations can retain earnings or tap complex deductions most Main Street entrepreneurs can’t access.

4. Bonus Depreciation:

Permanently Extended for Business Investment One of the lesser-known wins in this bill is the permanent extension of 100% bonus depreciation. This allows businesses to immediately deduct the full cost of equipment, machinery, or other qualifying assets, rather than depreciating them over several years.

That’s a real cash flow advantage for businesses reinvesting in growth, particularly in industries that require upfront capital. If you're considering major purchases, the timing has never been better.

5. Estate Planning: High Exemptions, Ongoing Uncertainty

The bill locks in the doubled estate and gift tax exemption, currently about $13.6 million per person ($27 million for married couples). That’s a win for high-net-worth families— especially those with farms, real estate, or closely held businesses.

But the threat of clawback or a future repeal of the step-up in basis still looms, especially depending on political shifts. Wealthy families and business owners should still plan proactively—because permanence in Washington often has an asterisk.

6. Temporary “Senior Bonus” — But Only for a Few Years

A new provision adds a $6,000 standard deduction increase for filers age 65 and older, starting in 2025—but only through 2028. It’s a small gesture for older Americans, but it’s temporary, meaning seniors will need to keep an eye on their tax plan as the sunset date approaches.

7. No Real Simplification, Just New Complexities

One of the original promises of tax reform was simplification. But if you’re a small business owner trying to navigate the QBI deduction, SALT limitations, bonus depreciation rules, and phaseouts tied to your profession, things haven’t gotten simpler—they’ve gotten more complicated.

And despite the permanence of many provisions, there are still significant differences between the House and Senate versions, especially on SALT deductions, business incentives, and treatment of pass-through entities using PTET (pass-through entity tax) workarounds. Your tax bill could look dramatically different depending on how those differences are reconciled.

Final Thoughts

The "Big Beautiful Bill" may be more durable than its 2017 predecessor—but it's still flawed in ways that disproportionately affect small business owners and residents of high-tax states. Yes, the individual cuts are now permanent. Yes, the QBI deduction survived. But the structural imbalance between large corporations and small service businesses remains.

If you’re a small business owner, professional, or retiree with meaningful income and assets, this bill reinforces a familiar message: don’t expect Washington to look out for your best interests—you’ll have to do that yourself.

That means staying ahead of legislative changes, adjusting your income strategies, and building a long-term tax plan that goes beyond the headlines.

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Kurt Supe, John Culpepper and Brian Quick offer securities through cfd Investments, Inc., Registered Broker/Dealer, Member FINRA &SIPC, 2704 South Goyer Road, Kokomo, IN 46902, 765-453-9600. Kurt Supe, Andrew Drufke and Brian Quick offer advisory services through Creative Financial Designs, Inc., Registered Investment Adviser. Creative Financial Group is a separate and unaffiliated company. The CFD Companies do not provide legal or tax advice.