Walter V. Murray breaks down a new federal bill he calls the "big BS bill," but finds two useful provisions for small-business owners: the Small Business Tax Deduction rises from 20% to 23%, adding $3,000 deduction on $100,000 taxable income. The bill adds roughly $1 trillion to national debt over ten years, which Murray argues erodes America's economic independence.
Uh, Walter Murray here, back for another episode of Strategic Leadership News. News you can count on to help you accelerate your business strategy. So what's been in the news this past week? The big beautiful bill. I could think of a couple other Bs to use instead of beautiful. The big BS bill comes to mind. Okay, but this is not a political show. This is not a political show. What we do is we take a look at what's happening in the news and try to find strategic advantages that you and I could use as business owners and business leaders to help us accelerate our business strategy. And so while I disagree with this bill on so many levels—morally, politically, socioeconomically, just in terms of policy development—it's been a, it's a piece of crap. But be that as it may, there still are some, some, some elements and provisions in this bill that as a small business owner leader, I could use to help me position my organization in a better, more financially sustainable position. So for example, in this bill, the small business tax deduction, which was scheduled to be eliminated, at the end of 2025 has been made permanent. So, and not only has it been made permanent, it's increased to 23% from 20%. So imagine, let's just do some quick math, right? Just to kind of give you, you know, a sense of what this means. As a small business owner, let's say your deduction on your business income that's eligible for the small business deduction was say, $100,000. There is in place currently a small business deduction that will let you deduct 20% of that, which is $20,000. Now that's for small business owners. That's huge, right? That deduction was scheduled to be eliminated at the end of 2025. So come 2026, you'd be paying taxes on the full $100,000 as opposed to just the $80,000, right? So that's what was scheduled to happen. In this bill, that 20% deduction has been made permanent and increased to 23%. Now, small business owners, a $3,000 increase in tax deduction, it's significant. I mean, let's not fool ourselves on that, all right? So there are some things in there that could help me understand how to position myself in terms of tax deductions, financial planning, strategic planning. There are things in the bill that could be used to help me in my strategic planning for next year, for example. All right. Now that's just one example of some some things within the bill, the big BS bill, that could still be of benefit to small businesses in America. It's incumbent upon us as business owners to hold our noses, read the bill, and make sure we find what works for us and what doesn't and govern ourselves and our strategy accordingly. Also, this is July 4th, Independence Day. Your boy Trump wanted to have the bill on his desk on or by Independence Day. And he was able to achieve that. The bill was signed and passed yesterday after much hullabaloo. But it is interesting to note that this bill passed on Independence Day is probably going to do more to make America more dependent, geopolitically speaking, geo-economically speaking, to make America more dependent than it has ever been. Why do I say that? As a whole, this bill is— the pundits tell us that it's going to increase the national debt by close to $1 trillion, if not more. Over the next, what, 5, 6, 10 years. You've heard this before, right? And listen, this is true real life. The more debt you're in, the less independent you are. The less debt you're in, the more independent you are. There's an inverse relationship between debt and dependency. I mean, you know that, right? You may not know it intellectually, but you know it experientially. Go buy a brand new car. Pay cash for it, no debt. You understand the level of independence you have as it relates to the car company who you bought the car from? You're totally independent. Go buy that same car, put $500 down, and finance it for 5 years with a $1,200 car note every month. Miss a couple payments. Miss 2 or 3 payments and tell me how independent you are of that car company. You wake up one morning and it's gone. It never happened to me. Okay, so just, let's just, just clear that up. That never happened to me. The more debt you have, the less independence you have. And so here in July for the big BS bill, is scheduled to increase America's debt by close to $1 trillion, basically putting a death nail in the head of America's independence. Independence in America, financially and economically speaking, is going through the roof. An interesting thing with national debt is that it impacts each citizen, each taxpayer, because we share a burden of that debt. And the way that trickles down is either increased taxes, inflation, but we become hold debtors with the government when the government accrues just these trillions of dollars in debt. So indirectly, our debt increases. And as our debt increases through no fault of our own, but because of bad policy, as our debt increases, our independence decreases. So happy July 4th, y'all. Enjoy your independence. I'm not sure how long it'll last. Walter Murray here, Strategic Leadership News, news you can count on to accelerate your business strategy fast and efficiently.
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