Gamblers rally against new tax provision in Trump's spending bill
- New legislation allows only a 90% deduction of gambling losses for professional gamblers, opposed to the historical 100%.
- Tax professionals and individuals in the gambling sector claim this will lead to taxation on non-existent winnings.
- Pushback from the gambling community has prompted calls for a legislative reversal of the change.
In a controversial turn of events, a tax proposal was introduced in legislation signed by President Donald Trump on July 4, which impacts professional gamblers in the United States. The new provision grants taxpayers the ability to only deduct 90% of their gambling losses, a departure from the previous policy that allowed 100% deductions for losses up to the amount of winnings. This change has raised concerns among poker players and sports bettors, many of whom argue that it could lead to a tax burden on income they did not actually earn. Lawmakers like Democratic Representative Dina Titus, who represents Las Vegas, have criticized the change and introduced legislation to reverse it. The modifications to the tax proposal were made within the Senate Finance Committee to comply with reconciliation rules, aiming to enhance revenue generation, projected to increase by nearly $1.1 billion over a decade. In addition, it highlights the discrepancy between lawmakers' understanding of the bills they support and the far-reaching implications of provisions that can significantly impact industries, such as gambling. With the support of gambling industry representatives and advocacy for equitable tax treatment, the pushback from professional gamers reflects a broader concern regarding fair taxation. This situation has raised important discussions about tax reform and its effects on specific sectors, particularly those reliant on high-volume gambling activities.