In the news from Epoch Times on July 26, 2025, the “One Big Beautiful Bill Act” continues the tax reduction benefits from 2017, further cutting taxes with various reforms in individual, corporate, and international tax systems. Accountant Ye Junlin, head of Establishment Accounting Firm and CEO of the Asia America Accounting Research and Development Foundation, attended the “Moving Forward Amid Turbulence” economic forum organized by the Los Angeles Taiwan-American Chamber of Commerce recently. He mentioned that while the plan aims to simplify the tax system, it spans over 800 pages, making it complex. He urged individuals, business owners, and enterprises to grasp the key points early and start tax planning.
In terms of individual taxation, the “One Big Beautiful Bill Act” increases various standard deduction amounts: $1,000 for single filers, $1,500 for heads of households, and $2,000 for married couples filing jointly. Those aged 65 and above will enjoy an additional $6,000 tax relief per person from 2025 to 2028, amounting to $12,000 for jointly filing spouses.
Ye Junlin pointed out that the bill particularly favors frontline workers. Tips and overtime income will enjoy tax exemptions of up to $25,000 from 2025 to 2028, which is a significant benefit for service industry workers like food and beverage employees. The new tax system not only benefits grassroots workers but also provides advantages for the middle class, small businesses, and investors simultaneously.
Additionally, the maximum child tax credit will be raised to $2,200; 529 education accounts will expand to cover vocational training and certification costs, no longer restricted to higher education expenses. Ye Junlin stated that these reforms will greatly alleviate tax burdens for middle-class families who cannot afford homeownership or claim deductions.
In terms of corporate tax, the bill focuses on bringing manufacturing back and promoting local investments. Research and development expenses can be expensed at once, instead of being amortized over years. Newly constructed buildings (excluding land) that commence construction between January 19, 2025, and January 19, 2029, and are completed by the end of 2030, can be fully expensed in the current year, significantly reducing initial tax burdens.
The exemption amount for Qualified Small Business Stock (QSBS) will increase from $10 million to $15 million. Those holding stocks for over three years can enjoy capital gains tax exemptions of 50%, 75%, and 100% based on the duration, benefiting venture capital and corporate merger operations.
The bill also retains and makes permanent the Qualified Business Income deduction (QBI), allowing business owners to automatically deduct 20% from profits, applying to sole proprietors, partnerships, S corporations, and active real estate owners. Ye Junlin noted that this policy will incentivize entrepreneurship and reduce tax burdens for small business owners.
In terms of international tax, the new tax reform strengthens oversight of multinational corporations, adjusting provisions like GILTI (Global Intangible Low-Taxed Income), FDII (Foreign-Derived Intangible Income), and BEAT (Base Erosion and Anti-Abuse Tax), enhancing audits on profit shifting.
Future import pricing will include design fees, royalties, and other non-tangible costs. Tax authorities will enhance audits of transfer pricing for global companies, posing new compliance challenges.
Ye Junlin also mentioned that the tax reform bill simultaneously reduces federal social welfare spending by $1.2 trillion and reinforces restrictions on eligibility for food assistance programs: working-age adults without dependent children or special exemptions who receive food stamps will be required to work at least 80 hours per month. While some states criticize the federal government as “inhumane”, the Trump administration advocates for states to independently decide on welfare resource allocation, expecting this policy to have a greater impact on “illegal immigrants” and long-term welfare recipients.
As concerns arise outside that this tax reform may worsen the fiscal deficit issue, Ye Junlin cited data showing that tax revenues reached a 44-year high during the Trump administration, demonstrating that expanding the tax base through tax cuts can effectively stimulate compliance and economic growth.
He emphasized that the core of the tax reform lies in “encouraging work, assisting the middle class, and cutting down on illegal spending,” with tax structure designs geared towards investing in the United States and reshoring manufacturing. He urged individuals and businesses to adjust their income structures and spending methods early, seek advice from professionals, and prepare during the golden period before the tax reform goes into effect to maximize benefits in the wave of tax changes. ◇