The New Tax Bill: What This Means for Business Owners and Tech Startups

If you have glanced at the headlines or spoken with other entrepreneurs, you have probably heard: the new tax bill could be beneficial for small businesses, with fewer audits, lower rates, and reduced red tape. Sounds like cause for celebration, right?

Well, yes, in the short term. However, as your trusted growth strategist, I am here to help you see beyond the immediate relief. Let us explore what is happening, what you need to watch out for, and how Into The Next can help you navigate what comes next.

Why The New Tax Bill Looks Good (For Now)

1. Temporary Tax Relief for Pass-Throughs

S-corps, LLCs, and partnerships may enjoy immediate reductions in effective tax rates thanks to extended allowances (like Section 199A), releasing extra cash into your business in 2025 and 2026 (Budget Lab, 2025; ITEP, 2025).

2. Fewer IRS Audits for Now

The bill significantly reduces IRS funding, limiting its ability to conduct audits, especially at higher income levels. In theory, that means fewer headaches for small business owners (Tax Policy Center, 2025).

3. Simplified Reporting and Deductions

Reductions in red tape—such as expanded R&D expensing, higher SALT caps, and more generous depreciation—may streamline record-keeping and improve cash flow in the short term (Anchin, 2025).

Read more: https://www.intothenext.com/post/why-investors-fund-startups-without-traction-mira-murati-s-1b-raise

What The New Tax Bill Might Be Lurking Beneath the Surface

1. Benefits Skew Toward the Wealthy

While you may see a tax cut, upper-income earners (top 1%) benefit far more: average yearly cuts of $30,000, with pass-through rules offering $120,000+ for the top 0.1% (ITEP, 2025; Budget Lab, 2025). The Congressional Budget Office states that ~70% of the total relief goes to the top 20% (New York Times-style analysis).

2. Massive National Debt Increase

The Congressional Budget Office projects that the bill will inflate deficits by $2.4–2.8 trillion over the next decade (CBO, 2025; Wikipedia, 2025). That can trigger inflation, lead to higher interest rates, or necessitate future cuts to key programs.

3. Cuts to Social Programs = Business Impacts

To offset tax breaks, the bill cuts Medicaid, SNAP, clean-energy credits, and education funds, impacting low-income consumers and reducing demand in many industries (Guardian & Washington Post, 2025).

4. Underfunded IRS Hurts Honest Taxpayers

Studies show that every dollar spent auditing high earners returns $12–$36, and reducing IRS capacity allows more wealthy taxpayers to cheat, shifting the burden onto law-abiding individuals and small businesses (Yale Budget Lab, 2025; Equitable Growth, 2023).

5. Temporary Provisions = Long-Term Risk

Many benefits—pass-through deductions, SALT changes, and credits—are scheduled to expire between 2026 and 2029 while the debt fallout persists. That creates uncertainty for planning beyond 2025.

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What You Should Monitor Closely

• Sunset Provisions

Keep an eye on when key deductions and credits start to shrink or expire—major surprises are possible after 2026. Avoid locking in long-term commitments (such as hires or expansions) without factoring this in.

• Interest Rates & Financing

As debt rises, the Fed may tighten its monetary policy. That means higher interest rates, more expensive loans, and potentially tighter credit, putting pressure on investment and cash flow.

• Shift in Audit Patterns

An understaffed IRS may focus audits on mid-sized businesses, perceived as easier targets. Ensure your documentation, payroll, and expense records are accurate and complete.

• Consumer Demand Trends

Reduced funding for safety-net and clean-energy programs could reduce demand in sectors such as retail, healthcare, and renewable energy services. Diversify your market focus.

How Into The Next Can Help You Stay Ahead

1. Comprehensive Tax & Cash Flow Forecasting

We will run multiple scenarios, including best, base, and downside cases, through 2027 and beyond. That helps you understand how business performance may be affected under shifting tax regimes.

2. Strategic Growth Planning

Beyond growth, we help you grow strategically. This includes investment and acquisition readiness, as well as aligning expenditures with projected after-tax cash flows.

3. Audit-Ready Compliance

We will implement robust compliance systems—from bookkeeping to payroll. That ensures you are protected if the audit focus shifts to mid-sized businesses, not just small ones.

4. Access to Trusted Tax & Legal Advisors

Through our network, we will connect you with vetted CPAs, tax attorneys, and fractional CFOs who understand your business structure and goals.

5. Advocacy & Policy Insight

We will keep you updated on legislative happenings, including sunsets and funding changes. You will know when to act, adjust, or adapt.

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Final Take

Yes, the bill offers short-term benefits, but it is not a permanent solution. It widens the wealth gap, increases national debt, and stretches your customers' wallets over time.

Now is the time to be proactive, not reactive. With thoughtful planning, you can:

• Lock in short-term advantages

• Prepare for mid-term shifts

• Protect long-term growth and stability

Let us help you build a resilient business strategy that keeps you ahead, regardless of how the tax landscape evolves.

References:

• Anchin. (2025). Big Beautiful Bill Tax Changes: Key highlights. Anchin insights.Budget Lab, Yale University. (2025, June 20).

• Standalone distributional effects of major tax provisions...CBO. (2025).

• Estimated budgetary effects of H.R. 1, the One Big Beautiful Bill Act.Equitable Growth. (2023).

• Doubling-down on cuts to the IRS is bad for the federal budget and for tax fairness in the United States.Guardian. (2025, July 3).

• Trump's big bill achieved what conservatives have been trying to do for decades.ITEP. (2025).

• Analysis of tax provisions in the Senate reconciliation bill.New Yorker. (2025, July 7).

• The economic consequences of the Big Odious Bill.Tax Policy Center. (2025).

• How have cuts to the IRS’s appropriations affected its ability to administer the federal tax system. Wikipedia. (2025).

• One Big Beautiful Bill Act.Wikipedia. (2025). Tax Cuts and Jobs Act.Washington Post. (2025, June 16).