How the “Big Beautiful Bill” Impacts Your Financial Future: A Closer Look
On July 4th, President Trump signed the much-anticipated “Big Beautiful Bill” into law—a sweeping 870-page piece of legislation that extends and enhances key tax provisions from the 2017 Tax Cuts and Jobs Act.
Key Tax Changes That May Affect You
For Workers & Retirees
No income tax on tips and overtime (within set limits)—offering greater take-home pay for hourly and service workers.
New enhanced standard deduction for seniors (65+): $6,000 per person and $12,000 for a married couple, phased out for high-income households.
State and Local Tax (SALT) deduction cap increased to $40,000—again, phased out at higher income levels.
Top tax bracket remains at 37%—beneficial for high earners and those planning long-term investment strategies.
For Families
Higher child tax credits provide increased support for working parents.
IRA contribution income thresholds increased for 2025, making it easier to save for retirement.
For Seniors & Long-Term Care Planning
New home equity limits for Medicaid eligibility (starting in 2028) could affect access to long-term care for millions. Now is the time to revisit estate and elder care planning strategies.
Business & Investment Incentives
Business owners will appreciate:
Full expensing for R&D and tangible property
Expanded Section 179 limits
Favorable updates to depreciation rules
Lower excise taxes and new tax credits that could improve after-tax profitability
20% Qualified Business Income (QBI) deduction made permanent—good news for small business owners and entrepreneurs.
Extending and updating Opportunity Zones
These updates create opportunities to reinvest in growth, but they also demand thoughtful tax planning.
The Big Picture: What’s Next?
The Congressional Budget Office estimates this bill could add $3.4 trillion to the national deficit by 2034. The government's hope? That AI, automation, and the tech sector will supercharge productivity and offset these costs through stronger economic growth.
But what if growth doesn’t keep pace with spending?
That’s the uncertainty every investor must navigate—and why a disciplined, diversified, and adaptable portfolio strategy is essential.
Our Perspective at Skyline Advisors
We believe that sound financial planning isn’t just about numbers—it’s about aligning your wealth with your values and vision for the future. Whether you're nearing retirement, navigating a life transition, or looking to optimize your investment strategy in light of new tax laws, our role is to guide you with clarity, care, and wisdom.
Let’s Plan for What’s Ahead—Together
Now is the time to assess how these changes impact your financial plan. Our advisors are here to help you make sense of this evolving landscape and craft a strategy tailored to your goals.
Schedule a consultation today
(360) 671-1621
www.skylineadvisors.com
The content of this blog is for informational purposes only and should not be construed as investment, tax, or estate planning advice. Skyline Advisors, Inc. is an SEC Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where representatives of Skyline Advisors, Inc. are properly licensed or exempt from licensure. If indices are referenced in marketing material, it is important to note that these cannot be invest in directly, any vehicle such as Passive index-based ETFs and Mutual Funds which attempt to replicate indices have internal expense ratios and other associated costs that would negatively impact returns. No advice may be rendered unless a client service agreement is in place. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.