New Online Gambling Taxes To Fund Foster Care

Congressman Jim McDermott of Washington introduced a bill today that would use online gambling including online casino and sports betting taxation to fund foster care programs. The new proposal suggests using 25% of revenue from the regulation of online casino to pay for social programs and housing involving foster kids.

The bill is a more clearly delineated version of a measure proposed by Jim McDermott last year, which also proposed taxation rates for online gambling. Congressman JimMcDermott also includes a stipulation that states and Native American tribes receive 6 percent of the revenue collected from online gambling.

Congressman Jim McDermott told The Hill that ensuring states and social programs like those for foster children aren't hurt too badly by budget cuts is a big part of his thought in revising the bil The new bill, like its predecessor, imposes a federal licensing fee of 2% of deposits. This tax cannot be "deducted from the amounts available as deposits to the person placing a bet." According to Jim McDermott’s officials and previous estimates from the Joint Committee on Taxation (JCT), up to $42 billion could be reaped from the 2% deposit tax along with corresponding corporate, wager, and income taxes. The figure is over a ten-year period.

Congressman Jim McDermott’s new internet gambling venture adds two more twists that HR 2268 lacked. The first ships 25% of funds raised through HR 4976 to the Transitional Assistance Trust Fund, which provides educational opportunities and job training for those currently or formerly in foster care. The amount allocated to each state would depend on its population. In addition, 0.5% of funds raised through HR 4976 would be given to the American Heritage Block Grant Fund, which benefits historic preservation and the arts.

McDermott's office released figures showing the bill could generate $30 billion over the next decade for state coffers, as well as $42 billion for foster care subsidies. "The major reason is to make it possible for states to have access to online gambling revenue," said Congressman Jim McDermott. The bill is intended as a companion to Representative Barney Frank's proposal to regulate online gambling. Frank's bill is in the author's committee, the House Financial Services Committee, awaiting markup, and has acquired 66 co-sponsors.


Source: http://www.pokernewsdaily.com/jim-mcdermott-introduces-internet-gambling-tax-legislation-hr-4976-9321/