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Kozi Checks & Balances TaxTactics News

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August 23.2025

2 Minutes Read

How the One Big Beautiful Bill Act Affects Gambling Loss Deductions

One Big Beautiful Bill Act gambling loss deductions, vibrant slot machine.

New Tax Rules Leave Gamblers in a Bind

A recent tax code change under the One Big Beautiful Bill Act (OBBBA) has caused a stir among gambling enthusiasts across the United States. The bill introduces a limitation that permits gamblers to deduct only 90% of their losses when offsetting winnings, down from the previous full deductibility. This amendment presents a stark penalty, especially impacting professional gamblers and casual players who engage frequently in betting.

Understanding the Financial Impact

Prior to this change, players like Daniel Negreanu, renowned in the poker world, would utilize their losses to balance out taxable income effectively. In 2025, Negreanu's earnings at the World Series of Poker totaled $1,478,240 against buy-ins of $1,297,143, resulting in significant income that would typically be taxed. Under earlier rules, his tax liability would have left him with a substantial take-home amount. Now, with the new rules, Negreanu's take-home pay drastically reduces, exemplifying the financial strain this policy places on high-stakes players who already work on slim profit margins.

Legislative Insights Into Tax Gains

The OBBBA is estimated to yield $1.1 billion in tax revenues over eight years, as per the Joint Committee on Taxation's forecasts. However, there are warnings against the potential repercussions of this legislation. By effectively penalizing legal gambling practices, it may incentivize some professional players to seek gambling opportunities outside legal markets, including illicit platforms. Should this occur, there could be a reverse effect, diminishing the projected tax revenue altogether while also pushing more gambling underground.

The Wider Implications for Gamblers and Taxpayers

As lawmakers encourage gambling as a viable source of income for states, contrastingly, policies like the OBBBA risk erasing those gains by discouraging players to participate in the legal gambling ecosystem. Furthermore, this could pose a challenge for tax authorities, who may face reduced compliance as gamblers opt for unregulated avenues. The significance of this change cannot be underestimated, as it directly affects not just individual fortunes but also broader economic stability and tax revenue levels.

Tax Deduction Deep-Dives

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08.28.2025

How OBBBA Affects State Taxes: What Taxpayers Need to Know

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08.27.2025

Why the BLS Must Remain Politically Neutral for Effective Taxpayer Protection

Update Understanding the Role of the Bureau of Labor Statistics (BLS)The Bureau of Labor Statistics (BLS) is a crucial entity that gathers economic data to reflect the state of the U.S. economy. One critical role of the BLS is to provide accurate inflation figures, which are essential for policy decisions at both governmental and individual levels. However, recent events have raised concerns over potential political influence on the BLS's operations. When inflation is inaccurately reported, it can lead to widespread consequences, affecting everything from tax rates to government spending.The Consequences of Misinformed TaxpayersAs highlighted by the recent discussion surrounding the nomination of E.J. Antoni, there is a danger that politically motivated alterations in economic reporting could mislead taxpayers. With inflation often dubbed a "hidden tax," any misrepresentation in data can limit the purchasing power of citizens, making goods and services costlier over time. This could result in unintended financial distress, as taxpayers grapple with higher costs while their salaries remain stagnant.Balancing Data and PoliticsIn a well-functioning democracy, economic data should serve the public interest, unaffected by partisan agendas. The integrity of the BLS is essential; its reports must be held as benchmarks of truth for sound economic policy. If the administration seeks to influence outcomes through selected data manipulation, it risks losing public trust, leading to poor policy choices that may exacerbate economic challenges.Future RepercussionsThe integrity of economic data cannot be understated. If the BLS sways into the political arena, we could see a future where decisions are made based on distorted realities rather than factual data. Policymakers must commit to preserving the autonomy of key data-gathering institutions to ensure taxpayers receive accurate information upon which they can base important financial decisions.

08.14.2025

What the One Big Beautiful Bill Means for Your Taxes in 2026

Update Understanding the One Big Beautiful Bill: A Tax Revolution The One Big Beautiful Bill Act (OBBBA), which became law in July 2025, marks a watershed moment in federal tax policy. This legislation is significant as it makes the individual tax provisions implemented under the 2017 Tax Cuts and Jobs Act (TCJA) permanent. Notably, this change prevents a tax hike from impacting 62% of tax filers from 2026 onwards, a relief for many taxpayers. Key Benefits of the OBBBA The OBBBA introduces a range of tax cuts that extend beyond the TCJA, incorporating new deductions for overtime and tipped income, alongside an expanded child tax credit. Furthermore, it ensures permanence for 100% bonus depreciation, which allows businesses to recoup expenses more quickly for investments made in their operations. These provisions not only stimulate economic activity but also aid in streamlining tax obligations for many individuals and enterprises. Geographic Variability of Tax Benefits Tax Foundation estimates reveal that the benefits of the OBBBA vary widely across the country. For instance, taxpayers in Wyoming will experience an average reduction of $5,375 in 2026, whereas those in West Virginia might only see $2,503. Additionally, mountain resort towns like Teton County, Wyoming, stand out with striking average tax cuts, potentially benefitting business owners and higher earners. This geographical disparity highlights the varying economic landscapes and needs of different communities. The Changing Landscape of Tax Contributions According to forecasts, while the average tax cut per individual is $3,752 in 2026, it is projected to fall to $2,505 by 2030 as some deductions expire but will rise again by 2035 owing to inflation adjustments. This fluctuation emphasizes the importance for taxpayers to stay informed about upcoming changes in tax law, which could influence their financial planning strategies. What This Means for American Taxpayers The OBBBA represents a significant shift in the tax landscape, providing lasting benefits for American tax filers while potentially invigorating economic growth. As taxpayers reel from previous tax cuts and prepare for new deductions, it's essential to remain engaged with the evolving narrative of federal tax legislation.

How the One Big Beautiful Bill Act Affects Gambling Loss Deductions

New Tax Rules Leave Gamblers in a Bind

Understanding the Financial Impact

Legislative Insights Into Tax Gains

The Wider Implications for Gamblers and Taxpayers

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