No, it might not technically be summer yet, but wars are certainly beginning between car AC systems and the sun in many parts of the country. Things are heating up literally and legislatively (forgive me for being corny), and your wallet might start feeling the effects. Which is why I’m writing to you today.
I’ll start by stating the obvious: there’s a lot happening at the federal level right now. I’ll, of course, be keeping you updated in the coming weeks (specifically about Trump’s newly proposed tax bill). But first, let me emphasize one thing: this is all still proposed. Nothing’s final just yet.
So, expect more than a few back-and-forths before anything becomes law. Still, now is the smart time to get your bearings.
My focus in this? Helping YOU understand how this might affect your personal tax picture. Because while politicians are hashing out details, you need a clear view of how it could affect your wallet. Some of what’s being floated in this bill could have real implications for deductions you can take, income brackets you fall into, and your tax planning strategy.
That’s why I’m watching this closely—not to panic, but to plan. Because careful, proactive steps now can put you in a much better place later. I’m already starting to help some of my Milwaukee clients walk this out, so if you want help with pivoting in your 2025 taxes, I’m here for you: 414-325-2040
Today, I want to break down for you what’s being proposed and what to keep an eye on. Yes, more updates will come as the bill evolves, but here’s what’s most important to know in this moment…
What Trump’s Big Beautiful Bill Means For Milwaukee Taxpayers
“We fear the future because we are wasting today.” – Mother Teresa
I’ve had a few conversations recently that started the same way: “So… what’s this new tax bill actually mean for me?” If you’ve asked yourself that question (or maybe just felt some confusion reading headlines), you’re in luck today because I’m going to explain it in plain English.
Truth is, this legislation – the “Big Beautiful Bill”– is still winding its way through Congress. But many of the current provisions will likely make it to the finish line in some form.
And as always, my aim isn’t to root for or against the politics. It’s to keep YOU ahead of the curve. I want you to understand what’s on the table, so you can plan for how it could affect your bigger financial picture.
So, here’s what you need to know about the “Big Beautiful Bill”…
What’s in the “Big Beautiful Bill”
Frankly, a lot – but here are the provisions to have your eye on:
- The 2017 Tax Cuts and Jobs Act (TCJA) was set to expire at the end of 2025. This bill locks in those provisions (like the lower tax brackets, larger standard deductions, and the elimination of personal exemptions).
- The SALT deduction cap (currently 10K) would increase to 40K for married couples earning under 500K, with a phase-out beyond that (with the cap and income phaseout increasing annually by 1 percent from 2026 through 2033).
- Overtime pay and cash tip income would be federally tax-free from 2025 through 2028. (Note: Non-cash tips aren’t covered by the bill and are still taxable.)
- The Child Tax Credit would bump up to 2.5K per child (up from 2K), holding steady through 2028 before reverting.
- The estate tax exemption – currently scheduled to shrink dramatically in 2026 – would instead increase to 15 million per person (30 million for married couples), adjusted for inflation.
- The Qualified Business Income (QBI) deduction would jump from 20 to 23 percent and become permanent. If you own a pass-through entity (LLC, S-corp, sole proprietorship), this deduction could become an even more powerful tool in your tax toolbox.
- Bonus depreciation is back – 100 percent expensing of qualifying property and equipment from 2025 to 2030.
- The credit for electric vehicles (7.5K for buying a new EV and 4K for buying used) would be terminated at the end of 2025, as well as credits for making energy-efficient home improvements.
What the “Big Beautiful Bill” could mean for you
If you’re a W-2 earner: Lower marginal rates (meaning, the percentage you pay in taxes on the next dollar you earn) and an increased standard deduction are here to stay if the bill passes. And if you’re in a tipping profession or clocking a lot of overtime, the temporary exemption could fatten your take-home pay.
If you’re a parent: That extra 500 dollars per child adds up – especially when combined with the overall rate stability and reduced tax withholding.
If you’re a business owner: A larger QBI deduction and the return of bonus depreciation translate into potential year-over-year tax savings.
If you’ve got a sizable estate: If you were bracing for a steep drop in the estate exemption post-2025 (down to around 7 million per individual), this bill would actually raise it to 15 million. That gives you more flexibility around gifting, trusts, and multigenerational wealth transfers.
If you live in a high-tax state: Raising the SALT cap could ease the squeeze if you’re under that 400K income line. Keep in mind, the benefit phases out above that level – and we’re still talking about itemized deductions (which not everyone uses post-TCJA).
If you’re going green: If you’re planning on purchasing an EV car or making energy-efficient improvements (think solar panels, insulation, windows, etc.) to your Southeastern Wisconsin home, your window for earning tax savings on those would close at the end of 2025.
Now, let’s be clear: every tax cut has to be paid for somehow.
Trump has said these proposed cuts would be offset by the recently imposed tariffs. But for now, that’s just theory – tariff policy is still very much in flux, and the bill itself hasn’t made it through the Senate yet. The real-world impact here is still a moving target (and I’ll continue keeping you posted as it develops).
What to do now
Remember: This is all still pending legislation. I’d recommend doing a few things at this point:
First, schedule a review of your tax plan. Especially if you’re near key income thresholds (400K for SALT, QBI phaseouts, etc.), expecting a large capital gain, or receiving deferred compensation. Don’t wait until December. Let’s map things out now.
You should also run “what if” scenarios. If the bill passes, how does your picture change? What if it doesn’t? It’s always better to plan with both hands on the wheel (and my team and I are happy to help with that process).
And where you can, leverage timing. Keep your estate planning flexible. Use the current high exemption strategically, but don’t paint yourself into a corner. And if you own a business, consider timing your business investments. Thinking about new equipment? A lease vs. buy decision? You might save more by delaying until 2025 if the bonus depreciation returns.
The bottom line: The “Big Beautiful Bill” could bring meaningful changes to your tax picture. But it also comes with potential long-term implications. While nothing is set in stone yet, this is the time to make sure your strategy is ready – whichever way the bill lands.
You don’t need to pick a side here. What you really need is a plan. I’ll be watching closely as this unfolds to help you with that. In the meantime, if you’ve got questions – about the bill or your strategy (or the intersection of the two) – let’s chat. This is what we’re here for. Because staying proactive now is the best way to stay in control later:
414-325-2040
To your big beautiful tax strategy,
Jon Neal