🏛️ What the GOP’s Mega Law Means for Founders and Their Businesses 💼

The GOP’s new tax-and-spending bill, the "Big Beautiful Bill"—signed into law by President Trump—is a sweeping piece of legislation with major economic and policy impacts. As founders, understanding this is crucial, not just for compliance, but for your people strategy.

🧾 Summary of the Law:

This new law includes:

Permanent tax cuts for individuals and corporations (from the 2017 tax overhaul).
Higher SALT deduction limits (state and local tax deductions).
Raised estate tax exemption, benefiting wealth transfer planning.
New benefits like tip/overtime deductions, senior Social Security “bonus,” and a baby savings initiative.
Cuts to Medicaid and SNAP (food assistance), potentially impacting millions.
A $3+ trillion increase in the federal deficit over 10 years.
Elimination of electric vehicle (EV) credits—though still valid until fall 2025.

💼 Why This Matters for Founders & Small Business Owners:

✅ What’s Beneficial:

Corporate Tax Stability: Tax certainty helps with long-term planning, lower rates can increase net margins and attract investors.
Increased SALT Deduction: High-income earners can deduct more, reducing personal tax burdens.
Estate Tax Exemption: Good for succession planning if you’re building generational wealth.
New Tip/Overtime Deductions: Could allow for smarter workforce planning and new tax-saving opportunities for businesses with relevant staff.
Baby Bonds & Senior Bonuses: Could offer future benefits for employees and founders, shaping HR benefit offerings.

⚠️ What’s Concerning:

Social Safety Net Cuts: Reduced access to Medicaid and SNAP could increase employee hardship, potentially leading to greater reliance on employer-sponsored benefits.
Insurance Access: Nearly 8 million people could lose health coverage, meaning more uninsured workers and potential workplace disruption.
Deficit Growth: Long-term macroeconomic uncertainty (interest rates, inflation, public services) could indirectly impact hiring, cost of capital, and market stability.
EV Credit Expiration: Businesses with sustainability goals may need to act quickly to leverage remaining credits.

🧠 HR + People Strategy Takeaways:

Review Compensation & Benefits Strategy: Employees may feel squeezed. Re-evaluate benefits (health, wellness, retirement) to retain talent.
Support Financial Literacy and Planning: Host sessions or offer resources around tax planning and estate benefits for high performers or those nearing retirement.
Adapt Hiring Plans: Understand how new tax deductions can help structure roles for hourly or tipped workers more strategically.
Prepare for Employee Wellbeing Impact: Expect greater emotional and financial stress for some staff. Building a resilient, supportive culture will matter even more.

0 comments

Founder Phoenix Network

skool.com/founder-phoenix

Your ecosystem for holistic growth. Master teams, tech, well-being, and strategy to rise and thrive in your founder journey.

Members

Online

Admin