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Usa: Gambling Tax Breaks To Be Abolished

A curious law situation provides in the USA in many states for the fact that players can make their stakes and/or losses from the gambling tax deductible. Actually a beautiful thing, because also the Casinos and gambling enterprises profit in this way naturally. Nevertheless the legislation obviously does not please everyone and so the Californian politician Adam Gray makes straight mighty tendency against this law.

300 million US Dollar annually as subsidy sum

In the USA it can be correctly worthwhile for players to keep all vouchers for their in and payments and to submit these in the context of their annual tax return. The reason for this is a curious law, after which the losses from the gambling tax can be made valid . How high this tax relief turns out in detail is then, however, a matter for the states, while the general law is regulated at the state level. In some states, this law can be used so effectively that players receive almost all losses from gambling , or these can be claimed for tax purposes.

The refund requirements are, however, strictly. Thus, players must submit all receipts for deposits and withdrawals and at the same time note that the refund can not exceed the sum of annual winnings . For example, if $5,000 is won and $10,000 is lost within a year, players can claim a maximum of $5,000 for tax purposes. Nevertheless a worthwhile law, above all for the people, who play much and gladly. And they apparently like to take advantage of this law. The reimbursement of annual gambling losses, for example, is around 300 million US dollars. At the same time, however, this amount is distributed among less than 150,000 people.

Gray sees advantages for the rich

Because the 300 million US dollar refund is only claimed by less than 150,000 people, politicians Adam Gray see it as a tax that serves the rich of the country. Thus the politician is quoted in different media with the following words:

“It concerns a 300 million sins subsidy for the rich. If Congress wants to pay subsidies to players, that’s its decision, but we in California have families who don’t even have access to clean drinking water in their own homes or can’t even afford to visit a doctor.”

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Instead, the politician prefers to invest the money in the so-called “Inland California Healthy Communities Act”, which is committed to distributing the money better within the state and investing accordingly in different areas. Gray has here above all the drinking water and the drinking water supply in the head, which represents a large problem in California already for many, many years.

Drinking water supply in California critically

Laut estimates are in the warm US Federal State nearly 400,000 humans not in the position to be able to use clean drinking water in the own house. Beyond that one could determine in the recent past with nearly 270 water suppliers violations against the legal standards, so Gray. Drinking water, for example, is contaminated with various substances that can affect human health even in small quantities. These include, for example, hallogen acetic acid or even uranium. Gray wants to use a large part of the 300 million dollar savings to renew the water pipes and ensure that the chemical toxins can be removed. In addition, Gray also plans to establish a medical college. This has been on the state’s agenda for a good 20 years, but has not yet been implemented for financial reasons – so the fresh capital could also provide new opportunities here. The approval on federal level, thus by the Internal Revenue Service, would not be necessary in this case, since the use of the subsidies could be fixed on federal level.

In the industry resistance

With the constituency in California the plans of Gray might provide in large parts for enthusiasm. However also resistance against the proceeding of the politician stirs itself. In particular the gambling industry holds only very little of the plans of the politician. Numerous enterprises and offerers would be concerned, since apart from on-line gambling all bets from horse races, Casinospielen, sport bets or the like can be set off. The companies therefore expect that if the tax relief for the players were waived, they would play less or more economically. Only a few weeks ago a very similar discussion was held in the US state of Oregon, where the Senate had already passed the amendment. However, the responsible tax committee still has to give its approval.

Contradiction was mainly from the “Oregon Tribal Gaming Alliance”, which is the representative of the Indian casinos. The association explained that the so-called High Rollers, i.e. the persons for whom this law would ultimately bring a lot, also make up the majority of the turnover in the casinos. According to this, two percent of all players should be responsible for more than half of the turnover . If one would take these players now the fiscal advantages, these could avoid the way into the Casino. After all it is for many players on this level a strong incentive to be able to reinholen the often high sums by losses again in the form of tax refunds. How the law is changed thus in the coming months possibly, and whether this is at all the case, remains to be waited for first once.

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