The $3.3 trillion ‘big beautiful bill’ just cleared the Senate, and whether that’s a good thing or not depends largely on who you are and how you earn a living.
Not Just a Tax Bill, But a Signal
The bill’s projected $3.3 trillion addition to the deficit over a decade raises some eyebrows, but it also sends a more immediate message about who the government believes will drive the next phase of the economy. On paper, it rewards independence. In practice, it may favor those already ahead like well-established contractors, high-income earners, and large companies who can absorb complexity and capitalize on their scale.
Meanwhile those on the margins, such as early-career gig workers, side-hustlers, or low-income remote employees, could find themselves doing the same work with fewer protections and less room for error.
Tax Breaks for All (Kind of)
The permanent expensing provisions for business equipment and the higher Section 179 thresholds will make it easier for small businesses to deduct home office setups, computers, and technology infrastructure. This could encourage more solopreneurs and small remote-first companies to invest in better equipment.
The bill also makes permanent a 20% deduction for pass-through businesses, structures like LLCs and S-corporations that are popular among consultants, freelancers, and remote agencies. Combined with enhanced expensing rules for home office equipment, running a business from your kitchen table is being legitimized in the tax code.
The Invisible Weight of Competition
While the bill favors small businesses structurally, it also gives major corporations significant advantages – tax savings they can reinvest in automation, hiring, or pricing strategies that smaller players can’t match. Solo workers may find themselves under more pressure to keep rates low and output high.
Who Gets What: The Income Divide Gets Wider
High earners making over $220,000 will see substantial windfalls.
Those in the $220,000-$325,000 range get roughly ~$5,200 more annually, while those earning $325,000-$470,000 save approximately ~$8,700 more. The biggest winners, earning $470,000-$1.2 million, gain around ~$22,000 annually.
Middle-income remote workers ($50,000-$200,000) will see more modest benefits.
Those earning $100,000-$200,000 get roughly ~$2,900 more annually, while workers in the $75,000-$100,000 range receive about ~$1,600 extra. Workers earning $50,000-$75,000 see approximately $900 in additional income.
For lower-income workers, the benefits are almost negligible – those making $40,000-$50,000 get around ~$600, while the those under $34,600 see just $100 more or so per year. Many in this bracket could be affected by the Medicaid and Food Stamp restrictions, making those tax benefits pale in comparison to what they would lose.
SALT Shift May Loosen the Grip of the Tax Flight Trend
The increase in the state and local tax (SALT) deduction cap from $10,000 to $40,000 (for those earning under $500,000) could also impact remote work patterns. This change reduces the tax penalty for living in high-tax states while working remotely for companies based elsewhere. Previously, remote workers might have relocated from places like California or New York to Texas or Florida for tax advantages. With higher SALT deductions, some of that incentive diminishes, potentially allowing more remote workers to stay in expensive coastal areas.
Bottom Line
In the short run, the bill offers some clear wins for remote work, especially for higher-income professionals and small business owners. But the gains come with caveats: more complexity, more red tape for healthcare, and a growing divide between those who can absorb the burdens of independence and those who cannot.