The Effects of the “Big, Beautiful Bill” on You and the Dollar
- Matthew D. Davis, CFP®, APMA®
- Jun 30
- 2 min read
As Congress once again deliberates overnight on the “Big, Beautiful Bill,” there are potentially significant consequences for your wallet—some beneficial, others concerning. At the same time, the bill may set the stage for long-term weakness in the U.S. dollar. Here’s my take on what’s at stake—and how you can protect your financial future.
The bill is a continuation of the tax cuts from the “Tax Cuts & Jobs Act” passed in 2017. This includes maintaining the 37% maximum federal tax rate and the Qualified Business Income deduction of 20% for small business owners earning less than $247k (single filers), $494k (married filers) in 2025. By most estimates, maintaining these cuts will add about $4 trillion to the US national debt but provide continued relief to high income earners.
One major new provision is the proposed increase in the State and Local Tax (SALT) deduction cap—from $10,000 to $40,000. This is a significant win for taxpayers in high-income-tax states like California, Oregon, and New York, and could create significant tax savings.
The bill also introduces a 1% tax on money transferred out of the United States, with exceptions for credit card transactions. This is a more moderate version of an earlier proposal, which would have imposed a 3.5% tax on non-U.S. citizens only. The updated language lowers the rate but includes US citizens.
High national debt and slower projected economic growth tend to weaken a country’s currency. That’s already happening: the EUR/USD exchange rate has surged to 1.18, a sharp increase from near parity at the start of this year. A weaker dollar means imported goods cost more, and overseas purchasing power declines.
If the Federal Reserve cuts interest rates—a stated priority of the Trump administration—the dollar may fall further. Lower interest rates reduce the incentive for foreign investors to hold U.S. dollars, exacerbating the pressure on the currency.
For U.S. investors: The stock market, led by tech, continues to hit record highs. Companies earning substantial income overseas could benefit from the weaker dollar, as foreign earnings translate into higher profits when brought home—supporting dividend growth and share price appreciation.
For expats: If you rely on Social Security or U.S.-based income, a declining dollar means those deposits will convert into smaller amounts in your local currency. To hedge against this, consider holding more cash in your local currency and limit your reliance on USD-denominated cash reserves.
For all investors: Avoid overweighting money market funds or cash. If interest rates drop, yields will fall—and USD depreciation could eat away at purchasing power. Stay invested and consider increasing exposure to international stocks and bonds, and inflation-hedging assets like commodities (gold, food, energy).
At Eureka Wealth Management, I specialize in helping individuals and expats navigate complex economic and investment conditions. If you'd like to understand how these policy changes could affect your financial plan, I offer a free initial consultation.
📞 (760) 537-0791 📅 Book online: eurekawealthmanagement.com/book-online
Sources
FT 6/30/25 “US dollar suffers worst start to year since 1973” link