As the Trump administration's One Big Beautiful Bill
Although the proposed legislation is designed to be favorable to business, 42% of respondents to a Grant Thornton Q2 survey said they expect the changes to be beneficial, while 33% believe the proposed tax changes will harm their businesses' financial position.
The survey was "in the field" during the early stages of House and Senate discussions on the tax bill provisions. More than 260 finance leaders from organizations with more than $100 million in revenue were surveyed from April 30 through May 9, 2025. Industry representation was diverse, led by retail (16%), technology/telecommunications (16%), banking (14%), manufacturing (14%) and healthcare (10%).
"CFOs might be more optimistic about the legislation if polled today," said David Sites, national managing principal and head of the Washington National Tax Office and international tax solutions. But he added that some businesses might suffer negative consequences from the potential elimination of clean energy credits.
Both business leaders and legislators expressed concern about the effects of the U.S. debt on the economy.
"Our interest expense has grown to be one of the highest government expenditures," Sites said. "Anybody who has run a household budget knows that if the interest on your debt is one of your largest expenditures, your financial picture is not very healthy."
Moreover, international tax issues continue to present significant challenges for businesses, according to respondents.
"Until we have certainty on the treatment of key items such as research and capital expenditures, companies will need to weigh their investment decisions carefully," said Dana Lance, national tax solutions leader for Grant Thornton Advisors. "The competing pressures of a desire to create incentives for investment in U.S. business operations with the need to raise revenues will certainly be a key element of the ongoing legislative debate — especially if the government's tariff revenue is uncertain."
Key survey findings show that finance leaders are focused on:
- Supply chain shifts to reduce tariff exposure;
- Scenario planning to model potential impacts of legislative proposals;
- Pricing strategies to offset rising costs; and,
- Customers, with 51% are prioritizing customer acquisition and retention, up from 38% in Q1.
Although finance leaders are facing much uncertainty, they are actively deploying diverse strategies to protect and position their businesses for long-term success. To position themselves for potential tax changes, they have been modelling possible impacts of upcoming legislation on deductions, depreciation and international operations.
The 46% of companies that expect to cut vendor and supplier costs marks a 12-quarter high in the survey. "This indicates that finance leaders are working intensely to find sourcing options that won't be saddled with a tariff surcharge. In some industries, U.S.-based sourcing is difficult, but the tariff impact makes it worthwhile to investigate all potential supply chain options, according to the survey."
Planning now for potential tax reform implications is a necessity, according to the survey: "As the tax bill moves through the legislative process, the details around potential changes will come into sharper focus. Conducting scenario planning around the potential outcomes will help companies get ready to move quickly whenever the legislation is approved."
