Tags: Internet | Gambling | Tax | Revenue

US May Embrace Internet Gambling to Boost Tax Revenue

By    |   Wednesday, 04 Aug 2010 08:46 AM

The ever-expanding budget deficit has made Congress desperate to find ways of cutting spending and raising revenue.

On the revenue side, it is thinking of overturning the ban on Internet gambling it implemented just four years ago. The betting activity would be taxed, of course.

When Congress prohibited online gambling in 2006, the business merely migrated offshore.

The House Financial Services Committee has passed a bill that would allow nonsports betting, to be regulated by the Treasury Department.

A companion bill would charge the IRS with taxing the betting companies. In addition, individuals would have to pay taxes on their winnings, just as they do with offline gambling earnings now.

Supporters say the taxes could bring as much as $42 billion to government coffers for the next 10 years, The New York Times reports.

That $4.2 billion a year would be a drop in the bucket for a deficit that the Obama administration estimates will total $1.47 trillion this year.

But Congress is clearly coming to believe that desperate times call for desperate measures.

“This is money sitting on the table,” Michael Waxman, a spokesman for the Safe and Secure Internet Gambling Initiative, which represents financial service companies, told Bloomberg.

But opponents warn that legalization would encourage destructive gambling habits, especially among teenagers.

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The ever-expanding budget deficit has made Congress desperate to find ways of cutting spending and raising revenue. On the revenue side, it is thinking of overturning the ban on Internet gambling it implemented just four years ago. The betting activity would be taxed, of...
Internet,Gambling,Tax,Revenue
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2010-46-04
Wednesday, 04 Aug 2010 08:46 AM
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