The name might sound more like a marketing slogan than legislation, but Washington’s latest tax proposal—the One Big, Beautiful Bill Act—could carry major consequences for your wallet.

At Clarity Wealth, we’re keeping a close eye on it. Because even though this is still just a proposal, the clock is ticking—many of the current tax rules are set to expire at the end of 2025. And this bill offers some early signals of what might be coming next.

Let’s break it down into what matters most for individuals and businesses.

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What It Could Mean for Individuals

If you’re working, raising a family, or planning for retirement, here are some proposed changes worth knowing about:

1. Permanent Extension of 2017 Tax Cuts

The bill aims to make the individual tax rate reductions from the 2017 Tax Cuts and Jobs Act permanent, stopping them from expiring in 2025. That would keep today’s lower marginal tax rates in place.

2. Elimination of Taxes on Tips and Overtime Pay

This would exempt service workers and hourly employees from paying federal income tax on tips and overtime—an effort to boost take-home pay for millions.

3. A Higher Standard Deduction & Bigger Child Tax Credit

The proposal would increase the standard deduction and expand the child tax credit, offering additional relief for families with children.

4. SALT Deduction Cap Raised to $30,000

Currently, the deduction for state and local taxes (SALT) is capped at $10,000. This bill proposes raising the cap to $30,000—though this particular provision is expected to face resistance due to its budget impact.

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What It Could Mean for Business Owners

For entrepreneurs, S-Corp owners, and partnerships, here’s what’s on the table:

1. A Stronger QBI Deduction

The Qualified Business Income (QBI) deduction under Section 199A would be made permanent and increased from 20% to 23%, offering more generous tax relief for pass-through businesses.

2. Return of Business-Friendly Deductions

Immediate expensing for domestic R&D costs and capital investments—originally part of the 2017 tax cuts—would return, helping reduce taxable income for companies reinvesting in growth.

3. Rollback of Clean Energy Tax Credits

Tax breaks tied to electric vehicles, renewable energy, and home energy efficiency would be reduced or repealed—potentially impacting sectors and consumers invested in green technology.

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Don’t Wait for Congress to Decide

Look, it’s only May—and you can bet this bill will be debated, revised, and renamed a dozen times before anything becomes law. But that doesn’t mean you should wait to act.

Now is the time to start planning.

•             If the QBI increase becomes law, could that change how your business is structured?

•             If individual tax rates remain low, is there an opportunity to convert IRA funds to Roth?

•             Could a higher SALT deduction influence how you itemize?

Good planning starts before the ink is dry on any law.

So if you have questions—about this bill, your taxes, or how to make the most of the current rules—reach out. We’re here to help.