New 2025 Tax Law Cuts $4.5 Trillion—What Business Owners Must Know
Let Me Tell You a Quick Story…
It was just another quiet morning on July 5th when my phone started buzzing with messages from clients.
“Did you see the new tax bill?”
“What does this mean for my business?”
“Should I change anything before the end of the year?”
I grabbed my coffee and sat down to read the full story — and wow, this was big. President Trump had just signed something called the “One Big Beautiful Bill Act.” And while the name sounds a little funny, the impact is serious.
If you own a business, this new law could help you save money—or cost you big if you’re not prepared.
The Basics of the New Tax Law
So, what’s in this law that has everyone talking?
Let’s break it down in simple terms:
- The government is cutting taxes by $4.5 trillion over the next 10 years.
- That means more money in people’s pockets—for now.
- But there’s a trade-off: it’s also adding $3 trillion to the national debt.
That might not sound like a big deal today… but down the road, we could see major changes to cover that gap. And as we’ve seen before, business owners are usually the first ones to feel it.
What It Means for You (and Your Wallet)
Here’s what’s in the bill and how it might affect you or your business:
1. Lower Taxes Are Here to Stay
Back in 2017, the government passed a tax cut that was supposed to end soon.
Now, those tax cuts have been made permanent.
That means lower tax rates for both individuals and companies.
Good news, right? Sure—but it depends on how well you use those savings.
If you’re not actively planning with your CPA or financial advisor, you could miss out on legal ways to keep more of your money.
2. Bigger Deductions for Seniors
If you're 65 or older (or helping your parents with taxes), there’s a new $6,000 extra deduction you can use.
But here’s the catch: it phases out if your income is above $75,000 (or $150,000 for couples).
So once again, the savings are there—but only if you know how to qualify.
3. Child Tax Credit Got a Boost
Families now get $2,200 per child, instead of $2,000.
It’s a small win, but a meaningful one if you have kids. And if you’re a business owner, there may be more ways to benefit depending on how you’re structured.
4. No More Taxes on Tips and Overtime
This is huge if you work in food, retail, healthcare, or anywhere you earn tips or overtime.
As of 2025, the federal government won’t tax your tips or extra hours.
Imagine how much more take-home pay that means for your team—or you, if you still work long hours in your business.
5. New Car Deduction
Thinking about buying a new car? If it’s built in the U.S., you can now deduct up to $10,000 in loan interest.
This is meant to help American carmakers—but it could help you too, especially if your business requires driving or company vehicles.
But Here’s the Part Nobody’s Talking About…
While everyone’s celebrating tax cuts, there’s something else happening behind the scenes:
The government is cutting spending—a lot of it.
Programs like Medicaid and SNAP (food stamps) are being trimmed by billions. And while that may not hit your wallet directly, here’s the scary part:
Debt is rising.
Over the next decade, we’re expected to add $3 trillion more to the national debt. And if history repeats itself, that money has to come from somewhere.
Usually, that means:
- Higher taxes later
- Stricter audits
- Fewer loopholes and deductions
That’s why right now—not next year—is the time to sit down with a CPA and make a plan.
Why We’re Telling You This Now
We’re not just sharing news—we’re helping business owners take action.
We’ve worked with hundreds of entrepreneurs who’ve told us the same thing:
“I wish someone had told me earlier.”
So we’re telling you now:
This new law opens up opportunities—but only for those who know how to use them.
What You Can Do Today
Here are 3 smart steps you can take now to protect your business and grow your wealth:
- Get a tax strategy
Tax planning isn’t just for April. It’s for July, October, and December too. The earlier you start, the more you can save. - Structure your business the right way
Depending on your setup—LLC, S-corp, or C-corp—you might be missing out on major deductions. - Book a call with a trusted CPA
You don’t have to figure this out alone. A good CPA will help you stay compliant, avoid red flags, and keep more of what you earn.
Final Thoughts
Big changes are coming. Some are great. Some will hurt down the line.
But if there’s one thing we know, it’s this:
The people who plan ahead always come out stronger.
Let’s make sure you’re one of them.