Tax Revenues to Persuade US Congressmen
We are always talking about how taxing the online gambling industry could yield much better results for the American economy, then the current ban over online gambling business. Money that will be generated by the taxing system can be then used for benefiting the community and to helping problematic gamblers. This solution works much better than the one currently in practice. Spending tax payers’ money on enforcing the Unlawful Internet Gambling Enforcement Act, instead of regulating the industry and getting real results is ridiculous. However, a new study made into the prospects of taxation might bring needed change.
Tax revenue analysis conducted by an independent accounting firm indicates that once a taxing and regulating scheme for the online gambling industry is operating, tax revenues between $3.1 billion to $15.2 billion will be generated over the first five years. That’s a lot of money for the community. The analysis also looked at the next 10 years of operating and showed that tax revenues will stand between $8.7 billion and $42.8 billion during that period of time. The results were handed as testimony to the House Committee on the Judiciary by Representative Jim McDermott. Hopefully, it will open some hearts and minds.
Barney Frank’s initiative for a regulating bill will surely gain additional support once these figures are known. Such high tax revenues can be used as a “sweetener” for politicians that are currently unconvinced. Online gambling is still operating in America. Some operations are operating illegally while others have found ways for gamblers to pay their bills. The point is that a massive economic activity is taking place in the United States, and it’s unregulated and thus an-taxed. This could all change, and hopefully soon thanks to the recent study. If the UIGEA would have caused Americans to stop gambling, one could argue that it is a good bill (if that’s you are aiming for), however, it has failed in even serving its own purpose.