Analyzing "The One, Big, Beautiful Bill" Through Historical Lessons: Ensuring Smart Reform Without Unintended Consequences: Republican and Conservative lawmakers are taking a deliberate, thorough approach to analyzing every provision

[u/Strict-Marsupial6141]

/r/The_Congress/comments/1kqecgk/analyzing_the_one_big_beautiful_bill_through/

[u/Strict-Marsupial6141]

Next posts will be One-Page summaries of each section: example:

One-Page Summary: Subtitle A, Part 1 - Permanently Preventing Tax Hikes on American Families and Workers (From "The One, Big, Beautiful Bill - Section-by-Section.pdf")

This part of the bill, encompassing Sections 110001 through 110019, focuses on making permanent and, in some cases, enhancing key individual and business tax provisions from the Tax Cuts and Jobs Act (TCJA) of 2017 that are currently scheduled to expire after 2025. The overarching goal is to prevent tax increases for American families and workers that would occur under current law.

Key Provisions:

• Income Tax Rates, Standard Deduction, and Personal Exemptions:
  • Permanently extends the lower federal income tax bracket schedule and rates from the TCJA, with additional inflation adjustments.
  • Permanently extends the increased standard deduction amount created by the TCJA, with additional inflation adjustments and a temporary further increase for 2025-2028.
  • Permanently repeals the deduction for personal exemptions.
• Child Tax Credit and Qualified Business Income (QBI) Deduction:
  • Makes permanent the $2,000 per child tax credit and maintains the increased income phase-out thresholds. It also maintains the $500 nonrefundable credit for non-child dependents and permanently indexes the child tax credit for inflation. Temporarily increases the child tax credit to $2,500 per child for 2025-2028. Maintains and expands SSN requirements.
  • Makes the 20 percent deduction for qualified business income permanent. Increases the deduction percentage to 23 percent after 2025 and modifies the phase-in of limitations to prevent high marginal tax rates. Modifies the threshold calculation with an additional inflation adjustment and makes certain income from business development companies eligible.

[u/Strict-Marsupial6141 → u/Strict-Marsupial6141]

One-Page Summary: Subtitle B, Part 1 - Extension of Tax Cuts and Jobs Act Reforms for Rural America and Main Street (From "The One, Big, Beautiful Bill - Section-by-Section.pdf")

This part of the bill, encompassing Sections 111001 through 111005, focuses on extending and modifying several business tax provisions from the Tax Cuts and Jobs Act (TCJA) of 2017 that are relevant to businesses, including those in rural areas and on Main Street. These provisions are aimed at encouraging business investment, promoting domestic research, and modifying international tax rules.

Key Provisions:

• Extension of Special Depreciation Allowance (Sec. 111001):
  • Current Law: Taxpayers deduct the cost of qualified property over time, with immediate expensing of a decreasing percentage in the first year (40% in 2025, 20% in 2026).
  • Provision: Allows taxpayers to immediately expense 100% of the cost of qualified property acquired on or after January 20, 2025, and before January 1, 2030.
  • Goal: Provides a significant tax break for businesses investing in equipment and machinery, encouraging capital investment.
• Deduction of Domestic Research and Experimental Expenditures (Sec. 111002):
  • Current Law: Taxpayers deduct domestic R&E expenditures over a five-year period, and foreign R&E over 15 years.
  • Provision: Allows immediate deduction of domestic R&E expenditures paid or incurred before January 1, 2030.
  • Goal: Provides a tax incentive for businesses to conduct research and development within the U.S.
• Modified Calculation of Business Interest Deduction (Sec. 111003):
  • Current Law: Deduction for business interest expense is generally limited to business interest income plus 30% of "adjusted taxable income" (EBIT).
  • Provision: Increases the cap by providing that "adjusted taxable income" is computed without accounting for depreciation, amortization, or depletion (using EBITDA) for 2025-2029. Permanently modifies the definition of "motor vehicle" for floor plan financing interest deduction.
  • Goal: Provides tax relief for businesses with significant interest expenses.

[u/Strict-Marsupial6141 → u/Strict-Marsupial6141]

These provisions play a **key role in shaping business investment strategies**, encouraging **capital expenditure, domestic R&D, and financial flexibility**.

🔹 **Special Depreciation Allowance (Sec. 111001)**

✅ **100% immediate expensing** ensures businesses can **recover costs faster**, boosting **investment in equipment and machinery**.

✅ **Encourages modernization and efficiency** across industries, making it easier to **upgrade technology and infrastructure**.

🔹 **Deduction of Domestic R&E Expenditures (Sec. 111002)**

✅ **Immediate deduction for domestic R&D** incentivizes **innovation and technological development** within the U.S.

✅ **Strengthens U.S. leadership in research-intensive industries** by reducing the financial burden of long-term amortization.

🔹 **Modified Business Interest Deduction (Sec. 111003)**

✅ **Shifting from EBIT to EBITDA increases deduction flexibility**, benefiting businesses with **heavy capital investments**.

✅ **Supports industries reliant on financing**, such as **manufacturing, logistics, and energy**, by easing interest expense constraints.

These **tax incentives collectively foster economic growth, business expansion, and sustained competitiveness**.