Planning, Priorities, and Trade-Offs: Navigating the Latest Tax Overhaul
What the New Tax Law Could Mean for You (and the Bigger Picture)
Over the holiday weekend, a sweeping new tax bill was signed into law with plenty of patriotic fanfare. While it’s being touted as a victory by its proponents, the reality—like most legislation—is layered and complex. Below, I’ve broken down the key highlights that may impact you, your planning strategies, and some areas that may warrant a closer look from a values-based perspective.
What’s Staying (For Now)
First, the bill extends the current individual tax brackets, which were previously set to expire at the end of this year. The majority of taxpayers will continue to take the standard deduction—now $15,000 for individuals or $30,000 for joint filers. For those in the highest tax bracket, however, there’s a new wrinkle: if you claim deductions above your income threshold, you’ll be required to subtract 2/37ths of every additional dollar. (Many high earners will be itemizing anyway, but this is a noteworthy shift.)
Small Boosts for Giving and Seniors
The bill introduces an extra $1,000 (single) or $2,000 (joint) charitable deduction even if you take the standard deduction—a small win for generosity. Seniors also benefit from an additional standard deduction of $2,000 (single) or $3,600 (joint), plus a new $6,000 deduction for retirees earning up to $75,000 (individual) or $150,000 (joint), meant to soften the tax bite on Social Security benefits for lower- and middle-income households.
Estate Planning Implications
The estate and gift tax exemption has been increased to $15 million per person, and portability rules (allowing spouses to inherit unused exemption amounts) remain intact. This is a significant planning opportunity for families wanting to steward their wealth across generations with intention and care.
Relief for High-Tax States
The long-debated SALT deduction cap has been relaxed. Taxpayers earning under $500,000 annually can now deduct up to $40,000 in state and local taxes—up from the previous $10,000 limit. This will provide meaningful relief for families in higher-tax states.
Tipped Workers and Business Owners
The bill eliminates federal income taxes on tips—though they must still be reported for state and payroll taxes. On the business front, there are incentives for manufacturers and entrepreneurs: companies can immediately deduct the cost of new facility construction and R&D expenses, and small business owners in certain fields (think: legal, medical, investment partnerships) may see favorable pass-through deductions. Founders of new ventures will benefit from tax exemptions on the growth in their business’s value—a potential boost for innovation.
Where It Pulls Back
It’s important to note that the bill rolls back numerous clean energy incentives, including those for electric vehicles and efficiency programs. It also places new restrictions on food stamps (SNAP) and Medicaid access—changes that may affect our communities in far-reaching ways.
A Shift in Spending Priorities
More than $120 billion is earmarked for expanded border wall construction, immigrant detention capacity, and hiring of immigration enforcement personnel—an allocation that reflects a significant shift in federal priorities.
The Deficit and the Debt
The nonpartisan Congressional Budget Office estimates that this bill will add $3.4 trillion to the national deficit over the next decade. While some lawmakers challenge that number, the bill itself raises the legal debt ceiling by $5 trillion—perhaps an acknowledgment that this increase is, in fact, anticipated.
What This Means for You
As always, our role is to help you interpret what these changes mean through the lens of your values, goals, and vision for your life and legacy. Whether you’re considering charitable giving strategies, planning for retirement, thinking about family wealth transfers, or navigating business growth, we’ll help you adapt proactively.
And if some parts of this bill don’t sit well with you—whether from a fiscal, social, or environmental perspective—it might be a powerful time to revisit your own impact strategy. Where can your time, resources, or voice make a difference?
We’re here to help you navigate the numbers and the nuance. Reach out to have a conversation.
Sources:
https://www.cbsnews.com/news/whats-in-trump-big-beautiful-bill-senate-version/
https://www.cnbc.com/2025/07/03/trump-big-beautiful-bill-top-five-tax-changes-for-the-wealthy.html
https://www.cnn.com/2025/07/03/business/trump-big-beautiful-bill-business-economy
https://www.yahoo.com/news/know-6-000-senior-deduction-185017626.html