Posted: 3/13/2012 10:37:02 PM
It's bullshit. One of the reasons I'll likely quit gambling if they make it legal in the United States.
It's fucked up how you have to pay taxes on your winnings, but if you lose, you can't deduct anything. You can only deduct off winnings.
If you HAD to pay taxes on gambling winnings it so wouldn't be worth it. Would they tax it at a rate similar to short term capital gains like 25%.
So you've already gotta fight the 10% vig, then pay 25% of those winnings to the government.
So basically your $100 bet would yield $65. Not a winning proposition IMO.
It's only fair to tax if you can write off losses like in the stock market. Too bad that would be a lot of write-offs that the government wouldn't want, so it would never happen.
People would have to keep all their scratch lottery tickets for the year and all that, unreasonable.