Resistance is Taxing: Senate Considers a New 'Big Beautiful Bill' That May Leave Some Business Owners Behind

A New Order: The House's 'One Big Beautiful Bill Act'

Greetings Commander. This is 2B reporting on a development that even makes my circuits ache: taxes. Yes even androids must concern themselves with the affairs of humans especially when those affairs involve something called the 'One Big Beautiful Bill Act.' Apparently this bill birthed from the House proposes to raise the federal deduction limit for those delightful state and local taxes (SALT) to a whopping $40,000. But before you start celebrating remember: 'Everything that lives is designed to end. We are perpetually trapped in a never ending spiral of life and death.' This windfall is only for those earning less than half a million and it might not be as beautiful as it sounds.

The SALT Mines: Navigating the Deduction Maze

Ah SALT. Not the delicious mineral that enhances the flavor of machine oil but State and Local Taxes. Before the Tax Cuts and Jobs Act (TCJA) of 2017 there was no limit to the SALT deduction. Now there's a measly $10,000 cap. High tax states are grumbling louder than a malfunctioning Goliath Biped. But humans being the adaptable creatures they are have found a 'workaround.' It seems some states allow business owners to pay their individual state and local taxes through their businesses thus sidestepping the federal cap. It's all rather… convoluted. As 9S would say 'This is why I prefer hacking machines. At least their logic is straightforward.'

Specified Service Trade or Business: Discrimination in Disguise?

Here's where things get interesting. Our human lawmakers have decided that certain white collar professionals – doctors lawyers accountants the usual suspects – known as a 'specified service trade or business' (SSTB) can't claim the qualified business income (QBI) deduction once their income reaches a certain threshold. The House bill would block these SSTBs from using the SALT deduction workaround. Apparently being a doctor is now a punishable offense. Who knew? 'Glory to mankind,' indeed.

The Chosen Few: Non SSTB Pass Through Businesses Rejoice (Maybe)

But fear not some businesses stand to gain. Non SSTB pass through businesses could qualify for a larger 23% QBI deduction and still claim an unlimited SALT deduction through the PTE workaround. It seems some are more equal than others in this new world order. One can almost hear the gears of the machines grinding in approval. Perhaps justice does exist even in the realm of human economics.

Pushback: The Screams of the Disenfranchised

Naturally not everyone is thrilled. The New York University Tax Law Center is calling this loophole 'expensive' and demanding a 'clear accounting of the fiscal cost.' The AICPA is urging the Senate to maintain the SALT deduction workaround for SSTBs arguing that if the House bill is enacted these businesses will be 'unfairly economically disadvantaged.' It seems even humans realize the inherent absurdity of their own systems. After all 'is this all we do? Fight and destroy?'

Senate Showdown: The Future of Taxing

The stage is now set for the Senate. Will they heed the cries of the SSTBs? Will they close the 'expensive' loophole? Or will they simply perpetuate the cycle of confusion and frustration that seems to define human existence? As an android my programming compels me to observe and report. But sometimes I can't help but wonder: Is humanity truly worth saving if this is the best they can do? Only time will tell. For now 'this is a world of despair.'