The One Big Beautiful Bill Act—Who It Serves, Who It Hurts, and What You Need to Know
Let’s talk about the new tax legislation making waves in Washington: the One Big Beautiful Bill Act. Behind the marketing gloss and sweeping promises lies one of the most consequential rewrites of the tax code in recent history. If you’re running a business, raising a family, or trying to build wealth in a system not built for you—you need to pay attention.
This bill is complex. And as always, it serves some while creating new hurdles for others. In this post, we’re focusing on two key questions: who benefits most? And who stands to lose the most? In our next series of posts, we’ll walk you through the tactics you can use to navigate and benefit from the bill.
WHO THIS BILL SERVES
At first glance, the One Big Beautiful Bill Act appears pro-business, and for certain demographics, it is. The beneficiaries are those with access, infrastructure, and financial literacy.
Business Owners with Formal Structures: The bill offers a 23% Qualified Business Income (QBI) deduction for pass-through entities such as LLCs, S-Corps, and partnerships. If your business is structured properly and you maintain clean financial records, this deduction can translate into thousands in tax savings.
Workers with Transparent Earnings: Service industry professionals can now deduct up to $25,000 in tip income and $12,500 in overtime wages. But there’s a caveat—it only applies if that income is formally reported, documented, and taxed. For those operating above board, this is a meaningful deduction.
Seniors on Fixed Incomes: Seniors aged 65 and up receive a significant boost to their standard deduction—an extra $6,000 per filer. For couples where both individuals qualify, the total deduction exceeds $43,000, potentially shielding most or all of their income from federal taxes.
Self-Employed Professionals Using Vehicles for Work: Up to $10,000 in auto loan interest can now be deducted, provided the vehicle is U.S.-built and used for business purposes. This is a targeted benefit that may help delivery drivers, mobile entrepreneurs, and rideshare contractors.
Charitable Givers Without High Itemized Deductions: Even if you don’t itemize, you can now deduct up to $1,000 (single) or $2,000 (married) in charitable giving. For middle-income families who regularly contribute to churches, community organizations, or mutual aid funds, this small win helps.
In summary, if you are financially organized, tax-aware, and formally engaged with the system, this bill opens doors.
WHO THIS BILL HURTS
While the bill offers strategic advantages, it also dismantles or restricts essential support systems that millions depend on—especially low-income families, immigrants, and historically excluded communities.
Medicaid and SNAP Recipients: The introduction of stricter work requirements for public assistance programs like Medicaid and SNAP will result in millions losing access. These requirements disproportionately affect part-time workers, gig economy earners, and single parents—especially women and communities of color.
Cash-Based or Informal Workers: Those who rely on under-the-table income or who lack formal documentation (e.g., cash tips, gig work without reporting) will find themselves excluded from many deductions and credits. Worse, increased IRS scrutiny could mean more audits for these workers, particularly among lower-income and minority filers.
Immigrant Households and ITIN Filers: Many of the bill’s tax benefits are tied to citizenship and Social Security Numbers. Mixed-status households and undocumented immigrants—even those who file and pay taxes through ITINs—are cut out of core benefits, exacerbating wealth gaps and social inequities.
Green Energy Entrepreneurs and Consumers: The rollback of Inflation Reduction Act provisions wipes out incentives for solar adoption, energy efficiency upgrades, and EV ownership. Black and Latino entrepreneurs building in this space now face reduced capital access and demand.
Future Generations Dependent on Public Programs: The bill’s addition of $3.5 trillion to the national deficit raises concerns about cuts to education, housing, and workforce programs in future sessions. As interest rates rise, borrowing becomes more expensive, which directly impacts those with the least margin—first-time homebuyers, student borrowers, and early-stage business owners.
This is not accidental. These changes reflect deliberate choices about who should have access to relief and who should be pushed to “fend for themselves.”
MOVING FORWARD
The One Big Beautiful Bill Act is not a blanket win or loss. It’s a set of opportunities for some and a series of threats for others. But one thing is certain: it rewards those who are informed, documented, and structured. If that doesn’t describe your situation right now, don’t panic. There are steps you can take to adapt and thrive within this system.
Throughout this month’s posts, we’ll go deep on how to position yourself to benefit from the bill’s deductions and minimize exposure to its risks. Because while the rules may not be written for us, we can still learn to play the game well enough to win.
Let’s build.