Welcome to a Special Edition of The Broadcast!
Last week I compared the markets to Love Island - all drama, surprise pairings and everyone insisting they're “here for the right reasons.”
Not to be outdone, Congress dropped its own season finale over the 4th of July holiday. They passed what they’re calling the “One Big Beautiful Bill.” Think of it as the big recoupling ceremony for the tax code: permanent cuts, selective spending trims and a national debt cliffhanger for next season.
Here’s what the BBB actually means for you:
- No tax cliff. Those 2017 tax cuts were set to expire. Now they’re permanent. Your brackets stay lower.
- Standard deduction increases. $15,750 single, $31,500 married.
- Extra benefit for seniors. If you’re over 65 and earn less than $75K, you get an additional $6,000 deduction (until 2028).
- Child tax credit bumps up to $2,200 per kid and will adjust with inflation.
- SALT deduction cap rises to $40,000 through 2029. For those of us in high-tax states like California, that may prove especially beneficial.
- Tip income deduction. Workers earning under $150K can deduct up to $25,000 in tips through 2028. A meaningful change for service industry folks.
- No new tax on Social Security. For retirees wondering—no changes to how Social Security benefits are taxed in this bill.
- Estate tax exemption stays high. $15 million individual, $30 million couple by 2026. Fewer families will face estate taxes, but planning still matters.
- Some green energy credits end. Electric car and home energy incentives are going away.
Sounds pretty good on paper. Lower taxes, higher deductions. But there’s always a plot twist.
This bill adds an estimated $3.4 trillion to the national debt over ten years. The debt was already over $36 trillion (about $100,000 per American). So yes, we're making the tax cuts permanent—but paying for them on the national credit card.
The Trump Administration is essentially hoping we can rack up the charges now, earn enough "reward points" through faster economic growth and pay it off before the interest really piles up and the bill comes due.
What should you do?
Same advice as last week: stay invested, stay diversified, stick to the plan. Don’t let political drama throw you off. There’s always another headline, another season, another “shocking twist.”
If you want to talk about how these changes affect your situation - especially estate planning, gifting or charitable strategies - just reach out.
Because unlike reality TV, your financial plan is supposed to end well.
Until next time, take good care!
