The Hidden Cost of Tax Cuts
According to the Congressional Budget Office, this bill will add $3.3 trillion to our national debt over the next decade. We’re already $37 trillion in debt — that’s $280,000 per taxpayer. This isn’t just a number on a spreadsheet; it’s a ticking time bomb for our economy.
When the government can’t pay its bills, it doesn’t tighten its belt like your family would. Instead, it prints more money. Since 2020, the government has printed 40% of all dollars ever created – in just five years! This massive currency creation leads to one inevitable outcome: inflation.
Inflation is the hidden tax that destroys your purchasing power while politicians claim they’re cutting your taxes. It’s like someone giving you a $100 bill with one hand while quietly taking $200 from your wallet with the other.
Smart Money Strategies in an Inflationary Environment
Despite my concerns about the bill’s impact on our national debt, I believe it is essential to take advantage of every legitimate tax benefit available. Here’s what smart money is doing right now:
- Maximizing the SALT deduction immediately – if you pay $40,000 in state taxes, that’s a $14,800 federal tax savings at the 37% bracket
- Converting business expenses to family expenses by paying children up to $14,000 tax-free for legitimate work
- Moving wealth into inflation hedges
That last point is crucial. As the government continues to debase our currency, protecting your wealth from inflation becomes essential. Consider these inflation hedges:
- Real estate with fixed-rate debt
- Businesses that can raise prices with inflation
- Hard assets that maintain value
- Bitcoin and other limited-supply assets
The Coming Currency Crisis
The math is straightforward — we cannot continue adding trillions to our national debt without consequences. When a government consistently spends more than it collects in revenue, currency debasement is inevitable. This isn’t a partisan issue; it’s a matter of simple economics.
Throughout history, every fiat currency that has been debased eventually collapsed. The Roman denarius, the German mark, the Zimbabwe dollar – all destroyed by governments that couldn’t control their spending. The U.S. dollar won’t be immune to these same economic laws.
When government can’t pay their bills, they just print money. Since 2020, they printed 40% of all dollars ever created. That’s in just like 5 years. Your purchasing power gets destroyed through inflation.
I’ve spent my career helping entrepreneurs build and protect wealth. The current economic environment requires a dual strategy: take advantage of every tax benefit while simultaneously protecting yourself from currency debasement.
The Path Forward
While I’ll certainly help my clients maximize every benefit from this new tax bill, I’m also preparing them for the inevitable consequences of our growing national debt. The short-term tax savings are real, but the long-term economic risks are even more significant.
The most effective approach is to utilize these tax savings to construct inflation-resistant assets and income streams. Don’t be fooled into thinking these tax cuts come without costs. The bill will come due, and it will be paid through the devaluation of our currency.
Take every tax advantage this bill offers, but prepare for the currency debasement that will surely follow. Your financial future depends on seeing both the benefits and the dangers of this “big, beautiful bill.”
