Trump Signs $4.5T Tax, Spending Megabill Impacting US Economy

President Donald Trump's One Big Beautiful Bill Act, signed on July 4, 2025, introduces aggressive supply-side tax provisions, including the revival of full expensing for research and development, expansion of interest deductibility, and permanent small-business tax breaks, which are expected to impact CFO reporting and tax planning significantly in Q3 and beyond. While the U.S. Chamber of Commerce praised the law as pro-growth, the Tax Foundation highlighted mixed economic outcomes, noting a $4.5 trillion federal revenue reduction over ten years and increased tax code complexity. CFOs are advised to prioritize tax forecasting and balance sheet reassessments as the law affects deferred tax assets and earnings timing. Concurrently, CFOs face a challenging landscape shaped by economic headwinds and AI-driven transformation, with many leveraging AI to improve finance functions and prepare their organizations for future disruptions. Additionally, Warren Buffett's longstanding concerns about America's persistent trade deficit, exacerbated by policies aiming to boost domestic manufacturing and tariffs under President Trump, underline ongoing economic complexities. Lastly, amid rapid AI adoption, energy demand surges, spotlighting critical infrastructure companies positioned to benefit from the AI energy boom, reflecting broader investment and operational challenges in this evolving environment.