House Tax Panel Urged to Legalize Online Gambling
Supporters of legalizing Internet gambling told a House panel Wednesday that to do so would raise $42 billion for the federal government over the next 10 years.
Under companion bills from Rep. Barney Frank (D., Mass.) and Jim McDermott (D., Wash.), most of that revenue would come from income taxes collected on individuals’ winnings.
But Mr. McDermott’s bill would also impose an eight percent tax on online gambling deposits, paid by the operators of gaming websites.
“We are sending a multi-billion dollar industry offshore and underground. As a result, we are making tax criminals of Americans who can’t declare their online winnings to the IRS,” Mr. McDermott told the House Ways and Means Committee during a Wednesday hearing.
