The One Big Beautiful Bill: Financial Implications for American Businesses and Households

By Douglas Kohn, MBA, CPA | May 29, 2025

At SoFla Prime Consulting, we are committed to keeping our clients informed about significant legislative changes that could impact their financial strategies. The recent passage of H.R. 1, dubbed the "One Big Beautiful Bill Act," by the U.S. House of Representatives on May 22, 2025, marks a pivotal moment in U.S. fiscal policy. This sweeping reconciliation bill, now under Senate consideration, aims to reshape the tax code, federal spending, and economic priorities. Below, we break down the key provisions and their potential financial implications for businesses and households in South Florida and beyond.

What is the One Big Beautiful Bill?

The One Big Beautiful Bill Act is a comprehensive legislative package that extends and expands the 2017 Tax Cuts and Jobs Act (TCJA), introduces new tax incentives, and implements significant spending cuts and policy reforms. Championed by President Donald J. Trump and House Speaker Mike Johnson, the 1,118-page bill addresses tax policy, border security, energy, healthcare, and social programs. Its passage in the House by a razor-thin 215-214 vote underscores its contentious nature, and further changes are expected as it moves through the Senate.

Key Provisions of the Bill

1. Tax Cuts and Extensions  

   • Permanent TCJA Provisions: The bill makes permanent the individual income and estate tax cuts from the 2017 TCJA, preventing a scheduled increase to pre-2017 rates in 2026. The top individual tax rate remains at 37%.

   • New Tax Incentives: Notable additions include eliminating taxes on tips, overtime pay, and interest on certain auto loans, fulfilling key campaign promises. The State and Local Tax (SALT) deduction cap is raised from $10,000 to $40,000 for households earning up to $500,000, benefiting high-tax state residents like those in Florida’s coastal cities.

   • Business Tax Benefits: The bill permanently increases the Section 199A small business deduction to 23%, allows 100% immediate expensing for equipment, machinery, and R&D, and raises the business interest deduction ceiling by adjusting taxable income calculations.

     
     

2. Spending Cuts and Program Reforms  

   
   

   • Medicaid and SNAP Reductions: The bill includes significant cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), with a Congressional Budget Office (CBO) estimate suggesting 7.6 to 8.6 million Americans could lose healthcare coverage over the next decade.

   • Energy Policy Shifts: It phases out clean energy tax credits from the 2022 Inflation Reduction Act and repeals the Biden-era methane tax, aiming to bolster traditional energy sectors like oil and gas.

   • Border Security Investments: The bill allocates historic funding for border security, including completing 701 miles of primary border wall and supporting mass deportation operations.

     
     

3. Debt Ceiling Increase  

   
   

   • The bill raises the debt ceiling by $4 trillion to avoid a default, with Treasury Secretary Scott Bessent warning of a potential cash shortfall by August 2025 without action.

     
     

Financial Implications

For Businesses

• Small Business Growth: The permanent 23% Section 199A deduction and full expensing for equipment and R&D are poised to stimulate investment and job creation, particularly for South Florida’s small businesses in retail, hospitality, and real estate. The CBO estimates these provisions could generate $750 billion in economic growth for small businesses annually.

• Corporate Competitiveness: Maintaining a competitive corporate tax rate and enhancing international tax provisions will encourage U.S. investment and innovation, benefiting multinational corporations with operations in Miami’s global trade hub.

• Energy Sector Boost: Florida’s energy firms, particularly those in oil and gas, stand to gain from the repeal of restrictive regulations and taxes, potentially lowering operational costs and increasing profitability.

  
  

For Households

• Tax Relief for Middle and High Earners: The average taxpayer earning $30,000 to $80,000 could see a 15% tax reduction, translating to roughly $5,000 in annual savings. The increased SALT deduction will particularly benefit affluent households in high-property-tax areas like Miami-Dade and Broward Counties.

  
  

• Challenges for Low-Income Households: The CBO projects that the bottom 10% of earners could see a 4% reduction in household resources due to Medicaid and SNAP cuts, disproportionately affecting vulnerable populations. This could increase financial strain for low-income families in South Florida.

  
  

• Wealth Transfer Planning: The permanent increase in the estate and gift tax exemption provides stability for high-net-worth individuals planning wealth transfers, a critical consideration for Florida’s retiree and investor communities.

  
  

Macroeconomic Considerations

• Deficit and Debt Concerns: The CBO estimates the bill will add over $3 trillion to the federal deficit over the next decade, driven by tax cuts and insufficient offsetting savings. This has prompted Moody’s to downgrade the U.S. credit rating, potentially increasing borrowing costs and interest rates.

  
  

• Economic Growth vs. Inequality: While the bill is projected to fuel economic growth through tax relief and deregulation, its benefits skew toward wealthier households and businesses. The CBO’s distributional analysis highlights a widening gap between high and low earners, which could exacerbate social and economic tensions.

  
  

What’s Next?

The bill now heads to the Senate, where Republicans hold a slim majority. Senate Finance Committee Chairman Mike Crapo has indicated that some tax cuts may not require offsetting spending reductions, potentially altering the bill’s fiscal impact. However, opposition from senators like Rand Paul over the debt ceiling increase could complicate passage. If the Senate makes changes, the bill will return to the House for another vote, with GOP leaders aiming for President Trump’s signature by July 4, 2025.

How SoFla Prime Consulting Can Help

The One Big Beautiful Bill introduces both opportunities and challenges for South Florida’s businesses and households. At SoFla Prime Consulting, we specialize in navigating complex tax and financial landscapes to optimize your strategies. Whether you’re a small business owner looking to leverage new deductions, a high-net-worth individual planning your estate, or a family concerned about rising costs, our team, led by Douglas Kohn, MBA, CPA, is here to provide tailored guidance.

• Tax Planning: We can help you maximize benefits from the bill’s tax provisions, including the increased SALT deduction and small business incentives.

• Estate Planning: Our experts will ensure your wealth transfer strategies align with the permanent estate tax exemptions.

• Financial Forecasting: We’ll assess how spending cuts and economic shifts may impact your financial future, offering proactive solutions to maintain stability.

  
  

Final Thoughts

The One Big Beautiful Bill Act is a bold attempt to reshape America’s fiscal and economic landscape, with far-reaching implications for businesses, households, and the broader economy. While it promises significant tax relief and growth opportunities, its spending cuts and deficit impact raise critical questions about long-term sustainability. As the bill evolves in the Senate, SoFla Prime Consulting will continue to monitor developments and provide actionable insights to help our clients thrive.

For personalized advice on how this legislation affects you, contact SoFla Prime Consulting today at [insert contact info] or visit www.soflaprimeconsulting.com. Let’s navigate this new financial landscape together..

Disclosure: The information provided is for educational purposes only and does not constitute financial advice. Consult with a qualified professional before making financial decisions. Legislative details are subject to change, and we will provide updates as the bill progresses.

Sources:

• Congressional Budget Office Reports

• House Committee on Ways and Means

• Investopedia

• Yahoo Finance

• The White House

• Buchanan Ingersoll & Rooney PC

• Associated Press

• NBC News

Note: This blog post is based on the bill’s status as of May 29, 2025, and reflects the House-passed version. Senate amendments may alter its provisions.