Margin Tax Vote and Gamblers Among professional gamblers there is something of a panic
setting in if the Margin Tax passes tomorrow. In a nutshell, anyone whose
gross revenue reaches one million in a year is going to owe 2% of that
in taxes. As anyone who gambles heavily knows, this is a number that
many cross, some with relative ease. I don't know anything about how
it will be handled when everything gets added up at years end, all I know
is it sounds bad. There are many articles on the issue that can be Googled.
Gamblers who operate as a business will be subject to this tax and even
in a break-even or losing year will owe a minimum of 20K just based on
volume. That goes for any business, not just gamblers and that's quite
a hit for an operation like a small restaurant. It doesn't take much (less
then 3K a day in gross receipts) to hit the cliff referred to below.
Q: What is the provision in Question 3 that some people call the “fiscal cliff”?
The “fiscal cliff” refers to a flaw in the initiative that exempts a business making
one penny less than $1 million in gross revenues from paying the tax. However,
a business grossing one penny more than $1 million would pay the 2% Margin Tax
based on the entire million dollars, even if none of it were profit. If that business
used the standard 30% deduction, it would pay $14,000 in margin taxes.
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