Stop Punishing Gamblers Lose Form W-2G Certain Gambling Winnings
I wanted to let you know about a new petition I created on We the People, a new feature on WhiteHouse.gov, and ask for your support. Will you add your name to mine? If this petition gets 99,999 signatures by May 30, 2017, the White House will review it and respond!
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/petition/stop-punishing-gamblers-lose-form-w-2g-certain-gambling-winnings/
Why are you okay with them taxing your labor but object to them taxing your leisure?
As far as getting a response from this WH, don't hold your breath.
Quote: billryanWhat taxes have you already paid on your casino winnings?
Any money you win from the casino had to have previously been lost to the casino by someone else. Eventually, all money can be traced back to somebody's paycheck, where it was taxed as income.
Not saying this is a good argument or not, but I believe that is the OP's argument.
Quote: ByeByeW2GCasino slot machine players are required by the Internal Revenue Service to sign a form W-2G on wins of $1200 or more. This unfair tax needs to be eliminated in new tax plan. Gamblers have already have paid taxes on their money. By ending form W-2G everyone wins. The Government and the Casinos win by saving on the processing expenses. Gamblers win by not having to pay tax on the rare chance that they do hit the big one.
I wanted to let you know about a new petition I created on We the People, a new feature on WhiteHouse.gov, and ask for your support. Will you add your name to mine? If this petition gets 99,999 signatures by May 30, 2017, the White House will review it and respond!
You can view and sign the petition at WhiteHouse.gov
/petition/stop-punishing-gamblers-lose-form-w-2g-certain-gambling-winnings/
I hate to be this guy, but do you realize all wins are subject to tax? Yes, even if you win $1 it is taxable.
Quote: DeucekiesAny money you win from the casino had to have previously been lost to the casino by someone else. Eventually, all money can be traced back to somebody's paycheck, where it was taxed as income.
Not saying this is a good argument or not, but I believe that is the OP's argument.
You work. You get taxed. Now you take your leftover money and use some of it to buy a painting from me. As you paid for it with already taxed money, can I now not pay taxes on what I received?
Quote: billryanYou work. You get taxed. Now you take your leftover money and use some of it to buy a painting from me. As you paid for it with already taxed money, can I now not pay taxes on what I received?
Like I said, it's not a good point.
And CRJ, obvii.
Quote: DeucekiesLike I said, it's not a good point.
And yet that is the argument against an estate tax.
Someone works for a man. They pay taxes on the money they get.
Now the man dies and leaves the money to his kids.
Why should the folks that work pay taxes on what they get but the kids pay nothing on what they get? In either case, the man had already paid taxes on the money.
Quote: RSThe only good thing I can think of Canada is (apparently) they don't tax gambling winnings.
And CRJ, obvii.
Yes no taxes in Canada on gambling. As well when I win a jackpot in the states I don't end up paying taxes either.
What's CRJ?
Quote: PokerGrinderYes no taxes in Canada on gambling. As well when I win a jackpot in the states I don't end up paying taxes either.
What's CRJ?
Carly Rae Jepsen, you noob.
As a foreigner, aren't you supposed to pay like 30% or something atrocious? Or do you do some weird Canadian tax thing (like say "sowry" many times until they decide to give you a refund)?
EDIT: Oh I get the joke now. Since you don't hit any jackpots, there's no jackpot tax to pay. Very clever. :)
I do pay taxes when the Jackpot is hit but I get every penny back the next calendar year as a tax refund from the USA. I think it is part of an agreement between Canada and the US.
fairtax.org
I had heard not only not taxed, but a constitutional right. Think I read that in Casino Player years ago.Quote: RSThe only good thing I can think of Canada is (apparently) they don't tax gambling winnings.
And CRJ, obvii.
ZCore13
The OP oddly does not address legitimate issues and seems to pin his hopes on this double taxation argument - why, the Government wins too!Quote: ByeByeW2G...Gamblers have already have paid taxes on their money. By ending form W-2G everyone wins. The Government and the Casinos win by saving on the processing expenses. Gamblers win by not having to pay tax on the rare chance that they do hit the big one.
Legitimate issues unaddressed:
For the non-professional gambler, the issuing of W2-gs can be unfair - you can catch people who normally can't itemize deductions just right with what is basically an assertion that it is income. Many still can't itemize and claim the offsetting losses that would show it is not income. Renters are prone to the problem.
Not allowing a carry-over for losses is also unfair.
PS: for those cases where it *is* income without offsetting losses, does he really think ...
On Canada, McCarran has entertaining posters in the international terminal:
Win big in the US
Get taxed 30%
Feel cheated
Call RMS & get your money back
Life is good again
Quote: BTLWIHow do the poor and middle class get screwed by inheritance tax when it doesn't start until the estate is valued at $5M? Is that the bottom threshold for poor/middle class these days?
Not only that, only six states collect inheritance tax, and in all of those, you are exempt if you are the spouse. Even if you're NOT the spouse, inheritance tax is like 15% max.
I wouldn't complain for one second about an estate tax; that would mean I'm already up millions of dollars and would never have to work another day in my life.
Quote: TigerWuNot only that, only six states collect inheritance tax, and in all of those, you are exempt if you are the spouse. Even if you're NOT the spouse, inheritance tax is like 15% max.
I wouldn't complain for one second about an estate tax; that would mean I'm already up millions of dollars and would never have to work another day in my life.
Not exactly. NY State has slowly been raising its threshold but only a few years ago it was $600,000. My Aunt died in 2014 and it was 1.1 million. Divide that up between three main beneficiaries and a couple smaller ones and its not that much money. When all was said and done, my Mothers share was under $300,000.
Nice, but not never work another day in your life money.
I think the State and Federal should be the same and kick in around ten million or so.
There is also a detriment to W2Gs, overall returns must be lower to pay for the "burden" of paying them out. The higher the returns, the longer people play until burning their money to zero and getting more hand pays along the way. They say the same thing about horseracing having exotic bet takeouts 25%. This lowers many tickets below reporting thresholds, makes more money and reduces labor for paperwork.
Quote: onenickelmiracleTaxes and budgets being a zero sum game, if someone is let off the hook, it's going to translate into some kind of pain for someone else whether that means paying paying fees, having your taxes higher than they could etc., etc.
There is also a detriment to W2Gs, overall returns must be lower to pay for the "burden" of paying them out. The higher the returns, the longer people play until burning their money to zero and getting more hand pays along the way. They say the same thing about horseracing having exotic bet takeouts 25%. This lowers many tickets below reporting thresholds, makes more money and reduces labor for paperwork.
Are there any federal government sources that estimate taxes paid due to gambling winnings? I would have assumed it wasn't that much after people deducted losses.
Get enough W-2s and your income may be pushed into a higher bracket even with deductions and then there is the dread AMT. An insidious tax meant to only affect the rich but which hasn't been adjusted for inflation since 1969.
Quote: Dalex64I think the AMT has been adjusted for inflation since 2013.
You are correct. Just in time for me to stop needing it. Thanks, Obama.
I do not know. States really pray for a Powerball winner, for the money they bring. I've heard of some older people being affected by losing money gambling, yet with jackpots, think it has to do with Medicare.Quote: rsactuaryAre there any federal government sources that estimate taxes paid due to gambling winnings? I would have assumed it wasn't that much after people deducted losses.
Quote: onenickelmiracleI do not know. States really pray for a Powerball winner, for the money they bring. I've heard of some older people being affected by losing money gambling, yet with jackpots, think it has to do with Medicare.
I disagree. I think the states would rather have the jackpot keep climbing because they make more revenue when the jackpot is big and people aren't winning it.
Elaborate.Quote: DRichI disagree. I think the states would rather have the jackpot keep climbing because they make more revenue when the jackpot is big and people aren't winning it.
Quote: onenickelmiracleElaborate.
I don't know who gets what money when someone buys a ticket or who gets tax money....but I think the idea is:
If the double double super-mega ball is at $500 million dollars, bunch'a people are gonna go out and buy tickets. The state, presumably, makes money from all these tickets purchased. If no one wins, the double double super-mega ball goes to like $700 million or some nonsense. Now, more people are going to play it. Again, state makes money off the tickets, but no one wins. Now the double double super-mega ball goes to $1.2 billion....rinse wash repeat. And all that money in the double double super-mega ball is already a sunk cost or whatever it's called, BUT, it's already guaranteed tax money for the state (assuming someone eventually hits it). So if it's at $500 million right now and the state would get $250 million in taxes if it's hit, why does it matter if they hit it now or next week, they'll still get that $250 million in taxes, PLUS, additional money from ticket cost, PLUS increased tax from when the progressive goes up.
Big jackpot burnout waiting for a bigger jackpot.Quote: RSI don't know who gets what money when someone buys a ticket or who gets tax money....but I think the idea is:
If the double double super-mega ball is at $500 million dollars, bunch'a people are gonna go out and buy tickets. The state, presumably, makes money from all these tickets purchased. If no one wins, the double double super-mega ball goes to like $700 million or some nonsense. Now, more people are going to play it. Again, state makes money off the tickets, but no one wins. Now the double double super-mega ball goes to $1.2 billion....rinse wash repeat. And all that money in the double double super-mega ball is already a sunk cost or whatever it's called, BUT, it's already guaranteed tax money for the state (assuming someone eventually hits it). So if it's at $500 million right now and the state would get $250 million in taxes if it's hit, why does it matter if they hit it now or next week, they'll still get that $250 million in taxes, PLUS, additional money from ticket cost, PLUS increased tax from when the progressive goes up.
