From Fine Print to Front Page

On August 3, 2025, I wrote to you about the most important shift in tax policy we’ve seen in years. 

I shared that President Trump’s One Big Beautiful Bill Act was not just another piece of political theater. 

It was going to change the financial foundation of American business.

Most investors were still distracted by headlines on tariffs, inflation, or the Federal Reserve. 

But I urged you to look past the noise. The real story was buried in the tax code's fine print. And if you could see what I saw, the implications were clear.

I explained that provisions such as the return of 100% bonus depreciation, the reinstatement of R&D expensing, and the loosening of interest deductibility were rocket fuel for America’s strongest businesses. 

These changes meant more free cash flow, stronger balance sheets, and the ability for companies like Microsoft and Alphabet to accelerate investments in artificial intelligence and cloud computing.

That was August 3.

Just 10 days later, the Wall Street Journal confirmed exactly what I was talking about.

On August 13, the Journal ran a piece titled “No More Offshore. Startups Look to Spend and Hire in U.S. Due to Trump Tax Change.”

The article laid out the direct impact of the very same R&D provision I highlighted. 

They reported that tech startups are now reversing course and hiring in the United States instead of shifting those jobs overseas.

Finta, a small San Francisco software firm, is adding engineers in the U.S. because domestic R&D expenses can once again be deducted immediately. 

Turing Labs, another young company, had been considering foreign hires to offset higher tax costs. Thanks to the new law, it will instead hire Bay Area engineers.

That is the natural extension of what I wrote on August 3. 

Free cash flow improves when companies can deduct spending today rather than waiting years. 

When cash flow improves, confidence rises. That confidence translates into reinvestment, expansion, and — as the Journal showed — more U.S. hiring.

Think about how rare this is. 

In Washington, tax policy usually gets bogged down in lobbying, delays, and watered-down compromises. 

Investors learn to shrug it off.

But this time I told you not to shrug. I pointed to the impact on balance sheets of world-class companies. This was not a gimmick but a structural advantage that would play out for years.

The Journal’s follow-up confirmed another layer of that thesis: the policy shift does not just enrich the cash-heavy giants. 

It also flows down to small and mid-sized firms where every dollar of cash flow matters.

And what happens when startups suddenly find it cheaper to build teams at home instead of abroad? 

Jobs return to the U.S., engineers' wages rise, and innovation strengthens inside our borders. 

That is the American Prosperity story in real time.

When I talk about owning companies with strong fundamentals, this is what I mean. 

Tax changes like this are not about financial engineering. They are about real cash hitting the books of businesses that already dominate their industries.

Alphabet (GOOGL) and Microsoft (MSFT), both in our portfolio, represent the perfect case study. 

They already generate tens of billions in free cash flow every year. 

Now, with the R&D deduction back in play, they can accelerate hiring, invest more in cloud infrastructure, and double down on artificial intelligence breakthroughs.

And they are not alone. Amazon, Meta, and dozens of smaller innovators are lining up behind the same tailwind.

Congress’ Joint Committee on Taxation estimates that the R&D change alone will cut federal revenue by $141 billion over the next decade, with $54 billion hitting this year. 

That is money staying in the private sector instead of going to Washington. 

When that kind of capital is put in the hands of American innovators, history shows that there is more growth, more jobs, and more wealth creation.

It is easy to read the Journal today and nod in agreement. However, investors who saw the opportunity on August 3 are already a step ahead. 

They recognized that the winners would not only be large-cap tech giants but also the broader ecosystem of startups, suppliers, and staffing firms.

Look at Burtch Works, a staffing agency specializing in U.S. data science and AI roles. The Journal reported its demand has been up 15% to 20% since the bill passed. 

That means more placements, more revenue, and more growth for a business directly tied to the rising tide of R&D investment.

It also means higher wages for engineers and researchers. As Boston University professor Timothy Simcoe told the Journal, the short-run effect will be wage gains. The long-run impact will be even more innovation. 

That is the cycle of prosperity we bet on at American Prosperity.

Ten days may not sound like a long time, but in that short span, the story we highlighted became front-page news. 

We said free cash flow was going up, and the Journal showed how it is already translating into new jobs.

We said balance sheets would get stronger, and the Journal confirmed that even fragile startups are feeling relief.

This is why I stay bullish on America. 

Policymakers can argue. Headlines can distract. But when you look at fundamentals and see cash flow rising in the strongest businesses on earth, the path forward is clear.

The August 3 article was not just a forecast — it was a roadmap. 

The Journal’s coverage on August 13 proves we are on the right track.

At American Prosperity, we will continue to focus on businesses that grow stronger when given more capital to deploy. 

We will continue to look past the noise and zero in on what truly moves the needle. 

And we will continue to invest with confidence in the enduring strength of American business.

If you have questions, you can send them to me at [email protected].

And follow me on X here for daily updates.

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To your prosperity,

Charles Mizrahi
Prosperity Insider