Archive: Geoffrey T. Sanzenbacher

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The One Big Beautiful Bill Act deduction that could encourage bad actors. Let me start by heading off some angry mail: I’m all for rewarding hard work. But the “No Tax on Overtime” deduction of the “One Big Beautiful Bill Act” (OBBBA) gives me pause. There’s evidence that many more people than expected are claiming…

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Economics 101 teaches that it is a bad idea to design taxes that distort behavior. Yet the “No Tax on Overtime” provision in the One Big Beautiful Bill Act (OBBBA) – which is in effect from January 1, 2025 to December 31, 2028 – could cause behavior to change in two ways…