WASHINGTON: Gamblers are raising the alarm about a US$1.1bil tax hike buried in the Senate Grand Old Party’s tax bill that would slash their net winnings and potentially charge income tax when they break even or lose money.
In the Senate’s roughly 900-page version of President Donald Trump’s multi-trillion-dollar tax bill, gamblers would only be able to deduct 90% of their losses when calculating their net income.
Under the current law, a bettor can deduct the entirety of their losses, up until the amount of their gambling winnings.
“I’ve spoken to many clients, and they’re very concerned,” Zachary Zimbile, an accountant with experience in gambling regulations, said in an interview.
“If you add a 10% penalty, it’s going to eat into a lot of their profit.”
Professional gamblers recently took to social media to rail against the measure, which would take effect next year, and urged Republicans to change it.
Furthermore, congressional scorekeepers have calculated it will net the government US$1.1bil through 2034. — Bloomberg
