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1 Alex Muresianu, et al., One Big Beautiful Bill Act Makes the Individual Income Tax More Complex 1 (2025)

handle is hein.taxfoundation/oebgbful0001 and id is 1 raw text is: TAX FOUNDATION One Big Beautiful Bill Act Makes the Individual Income Tax More Complex Alex Muresianu Senior Policy Analyst Sam Cluggish Research Assistant Rebecca Walker Research Assistant Sept. 2025 Key Findings * The One Big Beautiful Bill Act (OBBBA) became law on July 4, 2025. * The law makes numerous changes to US tax law, some that improve the tax code and some that make it worse. * By (mostly) extending the expiring Tax Cuts and Jobs Act (TCJA) individual income tax reforms, the OBBBA preserves most of the tax compliance cost savings from that law. * However, the OBBBA loses ground on individual income tax simplification compared to post-TCJA tax policy. * Outside of the TCJA framework, the OBBBA also adds more provisions to the individual income tax than it subtracts. * The new senior deduction, no tax on tips, no tax on overtime, and the car loan interest deduction, among others, far outweigh the cuts to consumer-side green energy credits in terms of simplification. * Ultimately, while the OBBBA brings some stability by making many of the TCJA's reforms permanent, it generally fails to reform the code's accumulating complexity. The Tax Foundation is the worlds leading nonpartisan tax policy 501 (c)(3) nonprofit. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. TAX FOUNDATION 1325 G STREET, NW, SUITE 950, WASHINGTON, DC 20005 202-464-6200 1 taxfoundation.org