How President Trump’s “Big Beautiful Bill” Could Impact Small Business Taxes and Accounting
I apologize in advance, this post is longer than 2 minutes… BUT this is very relevant and important for small business owners. TL;DR at the end.
As of mid-2025, President Donald J. Trump is pushing forward a sweeping legislative initiative known as the “Big Beautiful Bill,” aimed at overhauling the U.S. tax system and rolling back a range of business regulations. Though the bill is still moving through the early stages of the legislative process, it has already stirred major interest — and some concern — among small business owners and tax professionals.
What Is the “Big Beautiful Bill”?
The “Big Beautiful Bill” is President Trump’s flagship economic package in his current term. It promises to build upon and expand the Tax Cuts and Jobs Act (TCJA) of 2017 by cutting taxes further, simplifying business compliance, and encouraging domestic investment. While the full legislative text was recently introduced in the House of Representatives, it has yet to pass either chamber of Congress.
Key components under discussion include:
Further reductions in corporate and pass-through business tax rates
Expanded bonus depreciation and asset expensing provisions
Streamlined deductions for small businesses
Payroll tax relief
Loosening of federal compliance and reporting rules
The bill is currently under review in the House Ways and Means Committee, with debates ongoing. Analysts expect significant amendments before any version reaches a floor vote.
What Small Business Owners Need to Know
Though the bill is not yet law, small business owners should pay close attention to how its provisions may impact their accounting strategies and tax obligations — especially for the 2025 and 2026 tax years.
1. Reduced Tax Rates for Pass-Through Entities
If passed, the bill would lower the tax rate for income earned by pass-through entities (e.g., LLCs, sole proprietors, S corporations). The current 20% qualified business income (QBI) deduction under Section 199A may be replaced or enhanced.
Impact: Potential for significantly lower effective tax rates, especially for service-based businesses — but also possible new phase-out thresholds and filing rules.
2. Increased Bonus Depreciation
The bill seeks to reinstate and expand 100% bonus depreciation for capital investments, retroactive to January 1, 2025.
Impact: Businesses could immediately expense new equipment, technology, or property upgrades — potentially lowering taxable income dramatically.
3. Simplified Deductions and Filing
A push for standard business deductions could simplify filing but might also eliminate or cap itemized deductions for certain industries or expenses.
Impact: Easier compliance for smaller operations, but niche businesses may lose out on key deductions (e.g., home office, vehicle expenses).
4. Payroll Tax Reductions
Trump has advocated for temporary payroll tax cuts or holidays as part of the bill to boost take-home pay and reduce hiring costs.
Impact: Short-term cash flow boost for employers and employees, but businesses will need to watch for changes in withholding rules and IRS guidance.
5. Regulatory Rollbacks
The bill includes language aimed at easing compliance with certain IRS, OSHA, and DOL regulations for businesses under 50 employees.
Impact: Reduced administrative burden, but state-level regulations may still apply and require coordination.
Current Status of the Bill
As of June 2025:
The bill has been introduced in the House and is under committee review.
Key business lobby groups and trade associations are lobbying for adjustments.
Senate Republicans have shown strong support, but passage may hinge on negotiations with moderate House members and budget scorekeepers at the Congressional Budget Office (CBO).
A final vote is unlikely before Q3 2025, and implementation of tax provisions would likely be retroactive to January 1, 2025, or take effect on January 1, 2026. This part is unknown for sure as of the writing of this blog post.
What You Should Do Now
Meet with an accountant, CPA, or tax advisor now to model potential scenarios under the new bill’s structure.
Delay or accelerate major business purchases depending on how depreciation rules may change.
Watch for IRS guidance — if the bill passes, transitional rules and compliance updates will follow quickly.
Bottom Line:
While the “Big Beautiful Bill” is not yet law, it’s on track to become a major piece of President Trump’s second-term legacy. For small business owners, preparing early could make the difference between missed opportunities and strategic gains.
TL;DR:
Summary of possible small business impacts if the Big Beautiful Bill is passed into law:
Key Takeaways:
The bill aims to put more cash back into the hands of small businesses through lower taxes and immediate expensing.
Simplified deductions and filing could save time and reduce accounting costs.
However, specific industries (like real estate, professional services, and independent contractors) should watch for deduction limitations or eligibility rules.