Tuesday, May 18, 2010

Online Gambling Tax May Be Jackpot for Congress, Lawmaker Says

A tax on online transactions has already been instituted in several state and local governments, but Congressman Jim McDermott is suggesting the Federal government begin taxing one specific type of online transaction – gambling over the Internet. McDermott said making this bold move could raise as much as $42 billion over a 10 year period. Check out a portion of the BusinessWeek.com story below.

“It’s a human activity that people are going to do and it’s a good place to pick up some dough,” said McDermott, a Washington Democrat, in an interview. “I’ve gotten a thousand ideas pumped at me about what we should do with the money.”

The House Ways and Means Committee tomorrow will consider his proposal, which depends on passage of a separate bill to legalize some Internet gambling and roll back a law designed to block wagering beginning June 1. That bill would let U.S. residents gamble online with companies licensed by the Treasury Department.

Las Vegas-based Harrah’s Entertainment Inc., the world’s biggest casino company, is among companies and groups lobbying Congress to legalize online gambling.

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