WASHINGTON, D.C. — In March, Rep. Jim McDermott (D-WA) announced that he was re-introducing legislation to tax licensed Internet gambling in the U.S.
The bill, known as the Internet Gambling Regulation and Tax Enforcement Act, is a companion to legislation introduced by Rep. Barney Frank that would license and regulate online gambling. Rep. McDermott's bill includes new provisions that weren't in the original version introduced in October, including a revenue incentive for States that could generate up to an estimated $30 billion for state coffers on top of the $41 billion in revenues for the federal government.
The legislation also includes a new incentive Native American tribes to participate, and new revenue set-asides, including a 25 percent designation for children in foster care.
"Legalizing, regulating and taxing internet gambling just makes sense" Rep. McDermott said. "Right now, the U.S. loses billions of dollars to off-shore gambling and illegal gambling rings because of an unrealistic and virtually unenforceable policy. The current prohibition of online gambling has failed and made countless Americans vulnerable to fraud, identity theft and money laundering. This revised legislation will help States — which are facing budget crises all their own — collect much-needed revenue, and will help provide the foster care system with more resources as well. This legislation will help protect consumers and help both the federal and state governments recoup billions of dollars that now flow offshore."
The revised bill includes four new provisions:
- A revenue incentive for the states and tribes to participate through a 6% tax on gambling deposits that flows to them;
- Two new revenue set-asides that would designate 25 of the generated funds for foster kids, and 0.5 percent for historic preservation and the arts;
- Tax measures to encourage illegal gambling service providers to operate legally; and,
- Ensuring that Internet gambling is not part of the current tax exemptions on horses, dogs, and jai-alai.
Banks would also likely benefit from legalization and regulation as they have been given an impossible task: starting this summer, they will need to certify that every credit card charge made by a consumer is not being used for illegal online gambling. Legalization and regulation of online gambling will take this onerous task out of banks' hands and prevent them from facing yet another challenge.
The bill protects Americans who today gamble online at locations that provide little or no protection against fraud and other scams. As a whole, the Frank and McDermott bills ensure the collection of existing taxes on income that was moved off-shore and made off-limits under the Bush administration.
Thanks to Harve$t Moon for the tip.
If they can make it work for people to actually win money and the states, to make some tax money... so be it, as for the federal government... they need no more taxes because they will still spend what we don't have.
I am all for protection of people online but it is just another regulation, taxation, that will in turn generate more needed government programs to monitor.... and in turn might cost more than it makes.
This I am afraid will open the door to an internet tax on all online purchases...
"The future is already taxed" Adam C. 2010...
They would have to come out with a internet type of card or an type of bank card that is already taxed you thank?
am all for making ever thing legal
however new tax's, hell no
the govt are rackless children with money, they don't earn anything them selfs, and send our money as if children in a toy store
they only have mom&dads credit card with unlimited credit line
, spend happy nuts
i say kill all tax's and make the govt by force small as can be
The bill is H.R. 4976. You can follow its progress by going to thomas.gov.
There is already a national "pool" for states to tax internet purchases which several have joined. Many more have considered it this year and will probably opt-in next year.
The big argument is that locals who pay taxes can't compete with box houses that don't.
It is high time for FORMER Rep. Jim McDermott (D-WA)!
How bout we do this: how bout we toss the bums out come November especially Barney Frank given the way he denied envolvment in the banking crisis....and I'm gonna listen to this guy?
Heck no I'm not!
Our whole tax structure has been broke because of reckless intervention by the very ones we put into office....the states have to create all these vast lottos as a means to create revenue due to all the middle class jobs that have been lost to China/Mexico...
Always look for washington politicians to put a spin on things...
I understand the anti-tax argument, but how do you guys feel about legal Internet gambling?
The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money.
I know the government looks at any form of gambling as a new revenue stream, but in reality any taxes should exist on Internet gambling only in large enough amounts to self-fund the regulatory body necessary to prevent scams.
I also agree with this!
The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money.
I totally agree, are you idiots in Washington listening?
Tea Party, Coffee Party any other party, it's our rights as Americans.... are you idiots in Washington listening??
It's Our Freaking Money; we can do with it What the Freak we want.
I am sick of these boobs in Washington telling US what the freak we can do with our money!
We earn it; we pay tax on it so we can do whatever we want. I might point out that before the ban on Internet gambling and money that we earned, oh what a nice term "EARNED" was spent right here in the good old US of A, so it helped the economy. You jerks put a stop to it and so goes the economy.
Now don't get me started on the oil companies headquartered overseas that just had a hand in the biggest oil spill in America that petioned a court to limit it's liability...what are you going to do about that MR Representative?
Spend less time telling US what we can do with our money and more time doing what we sent you to Washington to do.
>Michael
They shouldn't have outlawed internet gambling in the FIRST place, then they wouldn't have to be GOING through this ignorant mess!!!!!
If "they" means Congress, they never actually outlawed Internet gambling. What they did was stop money transfers from U.S. banks to Internet gambling sites. The biggest effect was to Online casinos and bingo games and most of them were forced to shut down. Basically if the sites issued players a check, no U.S. bank could cash it. The Online poker sites where less effected because of the large volume of foreign players and most of those sites have found other means for U.S. players to maintain real money accounts.
Some states enacted bans on any Internet gambling even though they still haven't a clue as how to enforce it. There is Constitutional question on if states can ban residence from visiting any website originating from another state or from another country too.
The IRS can require state lotteries to withhold taxes on winnings over $5000 and issue W2-Gs on winnings over $600. There is a problem of how to tax the online winnings because the IRS has no jurisdiction outside the U.S. where the Internet gambling sites are located. That is pretty much the reason why Internet Gaming Bill is still stalled in committee.
If you walked into a restaurant and asked for service and the proprietor said he/she would not accept your money, you’ve been banned from service pure plain and simple.
>Michael
Well said Todd -
"The crime should not be Internet gambling -- rather, it should be a crime to tell people what they can and can't do with their own money."
The internet sites pay $900 for a pick 3 straight.
The states pay $500.
Do you think this will fly??
ez
Does anyone know when they will vote on it?
I've been gambling online for YEARS. I have never had a problem depositing money or getting paid. Been doing it since about 1985. Now the FEDS are realizing that they are missing out on a LOT of money in potential taxes. What a bunch of idiots. Sometimes your odds are better gambling online. It just really depends on where you gamble. I have made a ton of money gambling online. It is about they legalize it.
Amen, Amen, and Amen. If people go to work and earn their money, then they're entitled to spend it the way the want. If they are fortunate enough to make or win money through something they are at losings odds with, they should definitely be able to keep 100% of it.
The government is just greedy and wants to have its' hand in every little penny existing...SO THAT THEY CAN GO AND WASTE FOR US!!
All I can say is write your congress and tell them exactly as you've all stated here. They already get part of the money we work for. Why should they be entitled to any of what we've "played for???"
L.L.
Maybe once a person pays all the taxes and other charges, you might just get $500 or much less.
Question. How are they going to make the off-shore people cooperate?
No need to, they just get the banks to allow or disallow the transaction.
Tuesday is Soylent Green day, make room, make room. It is coming. The government already considers the American people livestock fattened for the slaughter. I should consider moving if there was a place where there was a government that wasn't a separate entity rather than a true representative body. We don't need the Visitors from the V series to come eat us, we have our tax and spend elected officials.
If they are from another Country they don't have to co-operate do that??? I was wondering about that? I like things the way they are. I want all my money. Don't you?
"I was wondering about that? I like things the way they are. I want all my money. Don't you?"
Heh, heh, heh.
You're kidding, right?
No Marcie, the party's over, we all have to pay more taxes now for all the new government programs. He could take all of the rich peoples' money and it still wouldn't be enough. We will all be giving more and more and more to pay for it all. Ain't this hope and change nice? Yes he lied, but at least he's cool! Yes we can! Yes we can!
Think you won't pay "one more dime" in taxes? HA HA HA HA HA HA HA! LMAO! Can you see the forest out there or do the trees keep gettin' in the way?
LOL!! No the Trees keep getting in the way Yo Yo!! The parties just started!!
More Money more money!!! We pay taxes all the time. Yeah some more dimes!
Darlin, loose lips sink ships, if you don't think the states have someone monitoring this site , you'd be very wrong. Internet gambling in the us is illegal. not judging just saying be careful.
I agree with you. I think it should be legal to do as we please. They should mind there own business. They got
to much money that's why they're always mess with us. I also think that they need to leave people along
that have the machine in there stores. Sometime when I watch TV and leave the room I come back
and my cable logo is going across the screen, and I wonder I'm paying for this why isn't my program still
going as long as I want it to.
LOL! I had a feelin' the trees would be in your way Ding Dong!
Yo Yo,Ding Dong..We are getting hip..