I can’t say I like the idea of special taxes (beyond income tax on winnings) on Internet gambling, but at least this liberal duo is trying to end the ill-considered ban that Republicans quietly put in place in 2006:
Reps. Barney Frank, D-Mass., and Jim McDermott, D-Wash., are leading a group that proposes to repeal the Unlawful Internet Gambling Enforcement Act, which is set to go into effect June 1. Their plan would legalize and tax online gambling.
“We have an activity going on illegally in this country and we’re pretending it doesn’t exist,” McDermott said. Internet gambling “people have said ‘We want to be legal and we’re certainly willing to pay taxes,’ and we need the money. On every count, this is a net positive.”
The bill calls for a 6 percent tax on all deposits to be paid to state and tribal governments made by residents of their jurisdiction. For example, if someone living in Missouri puts $1,000 into an online gambling account anywhere in the country, $60 would go to Missouri’s state government.
“We have an activity going on illegally in this country and we’re pretending it doesn’t exist,” McDermott said. Internet gambling “people have said ‘We want to be legal and we’re certainly willing to pay taxes,’ and we need the money. On every count, this is a net positive.”
The bill calls for a 6 percent tax on all deposits to be paid to state and tribal governments made by residents of their jurisdiction. For example, if someone living in Missouri puts $1,000 into an online gambling account anywhere in the country, $60 would go to Missouri’s state government.
At least one congressman — Rep. Jim Leach, R-Iowa — became a victim of the “Green Felt Revolution” that took place in reaction to the gambling ban in 2006.
