Sneaky New Gambling Tax Punishes You for Losing. Reconciliation 3.0 Must End It
Washington has a bad habit of creating new taxes that sound harmless until ordinary Americans get the bill.
TL;DR
- A new provision in the One Big Beautiful Bill Act taxes gambling losses at 10%.
- Previously, gambling losses could be deducted against winnings up to the amount won.
- The new tax is criticized as unfair, comparing it to taxing stock market investors on gross sales without accounting for losses.
- This change could lead to effective tax rates as high as 264% in certain scenarios.
- The FAIR BET Act is proposed to restore the 100% deduction for gambling losses.
- The gaming industry is highlighted as a significant contributor to jobs and tax revenue.