bobbartop
bobbartop
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June 6th, 2019 at 5:47:15 PM permalink
Assemblymember Gray Proposes to Fund Clean Drinking Water, UC Medical Schools by Closing Gambling Tax Loophole

"Gray’s proposal is funded by closing a tax loophole which allows gamblers to deduct losing bets on their state income taxes. The loophole was created by a federal tax law to which California currently conforms. Gray’s proposal would disallow the deduction on state incomes taxes, but gamblers would retain the federal deduction. The loophole costs the state more than $300 million per year, yet benefits fewer than 150,000 people, primarily millionaires and billionaires."


https://a21.asmdc.org/press-releases/20190530-assemblymember-gray-proposes-fund-clean-drinking-water-uc-medical-schools
'Emergencies' have always been the pretext on which the safeguards of individual liberty have been eroded.
FleaStiff
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June 6th, 2019 at 6:27:07 PM permalink
It may not be a large voting block, but they can influence a lot of voters, give to opposing candidates and fund investigative journalism projects so I think this probably for publicity purposes.
sabre
sabre 
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June 6th, 2019 at 6:47:36 PM permalink
If Gray is too stupid to know the meaning of "loophole", how did he get elected?
AZDuffman
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Thanks for this post from:
odiousgambit
June 7th, 2019 at 2:43:08 AM permalink
Quote: sabre

If Gray is too stupid to know the meaning of "loophole", how did he get elected?



Well, we are talking he same kind and group of people who call a business using loss carry back/carry forward a "loophole." Or the deduction of any loss against income a "loophole." This is just the latest thing.
All animals are equal, but some are more equal than others
bobbartop
bobbartop
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June 7th, 2019 at 6:43:08 AM permalink
Quote: sabre

If Gray is too stupid to know the meaning of "loophole", how did he get elected?



I didn't vote for him.

Notice in the write up that it's "primarily millionaires and billionaires" who "deduct losing bets on their state income taxes." Still trying to figure out which category I fit in.
'Emergencies' have always been the pretext on which the safeguards of individual liberty have been eroded.
AcesAndEights
AcesAndEights
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June 7th, 2019 at 11:50:21 AM permalink
Insanity.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
beachbumbabs
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June 7th, 2019 at 11:54:11 AM permalink
That's just warped thinking. One of the fairer ways to determine taxables, even with the limitation of having to exceed the standard deduction, and they want to pretend no money was spent to get any winnings. This with always having to overcome the built-in HE to win in the first place.

This is legislators essentially imposing a sin tax on gaming, if they get this passed. It will be because of moral objections to gambling and judgement of gamblers, not because it's a fair tax.
If the House lost every hand, they wouldn't deal the game.
Rigondeaux
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June 7th, 2019 at 12:16:17 PM permalink
Quote: bobbartop

, yet benefits fewer than 150,000 people, primarily millionaires and billionaires."


https://a21.asmdc.org/press-releases/20190530-assemblymember-gray-proposes-fund-clean-drinking-water-uc-medical-schools




If by "millionaires and billionaires" he means the poor, ignorant, desperate and addicted.
Hullabaloo
Hullabaloo
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wellwellwell
June 7th, 2019 at 12:23:35 PM permalink
There are 11 states that don't allow for deductions on gambling losses, and a few others that have somewhat different tax schemes.

http://www.taxabletalk.com/2016/02/13/north-carolina-added-to-bad-states-for-gamblers/
Rigondeaux
Rigondeaux
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June 7th, 2019 at 1:59:03 PM permalink
Quote: Hullabaloo

There are 11 states that don't allow for deductions on gambling losses, and a few others that have somewhat different tax schemes.

http://www.taxabletalk.com/2016/02/13/north-carolina-added-to-bad-states-for-gamblers/



I wonder how this works out in practice.

It stands to reason that a heavy gambler, even a winning one, never mind a losing one, simply wouldn't have the money.

Years ago, I remember reading that, by the letter of Ohio law, poker players were supposed to pay taxes on their winning sessions but not factor in their losing sessions. For some people, it seems like their tax liability might exceed their income under such a scheme. Of course, poker players can just lie, which such laws force them to do.

Even if it's not that extreme. Let's just say you're average to mild problem gambler makes 50k. Loses 15-20k. Hits 10-15k in taxables. (pulling these numbers out of my butt).

Is the state's plan to just start rounding these people up and jailing them when they don't have the money to pay the taxes? Then paying $50k/yr to icarcerate them? Great plan.

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