Mathematical impact of the Big Ugly Bill--on gamblers

Let's talk about what happens if you hit a sizable jackpot--not "life changing," but nice: say, $20,000. Let's use the 24% tax rate mentioned in the recent LVA video.

Scenario 1: you've not gambled at all this year. You will owe $4,800 in federal taxes. So, your real payout, even before state taxes are subtracted, is only $15,200. This effectively increases the disadvantage you've been fighting. But you say oh well, I won. Fair enough.

Scenario 2: You're $20K in the hole. You hit! You're even! Yay!

Not so fast.

You still owe taxes on $2000 of your "winnings." In order to truly get even, your jackpot would have to have been $22,222. As it is, you will still owe $480 on your nonexistent net win.

Scenario 3: You're 50 grand in the hole. That 20 grand you won fills in the hole a bit. But you're still down $30K. What do you need to win to break even for the year?

You might say, "Well, $30 grand, right?" That would have been true before. But since $5000 of those losses that put you in that hole "don't count," you need to win $35,000, not $30,000, to get even.

These numbers just get worse and worse as you play more and more. You can be consoled by the fact that the taxes you pay will go toward buying another fancy jet for the CEO of the corporation that owns your favorite casino.

   Please show/paste a link to your statement that the collected taxes "will go toward buying another fancy jet for the CEO of the corporation that owns your favorite casino." 

Your unwavering, slavish, drooling fealty for Trump includes your heartfelt support for anything he does. I get it. You're stalking me. I get it.

But I'll dignify you with a response. We're all paying more taxes in order to support tax breaks for corporations and the rich. And almost all casinos are owned by corporations or rich individuals. So that tax on your losses goes straight into their pockets.

But then, you already knew that.

       What I know is that you have not produced proof - a link - to your claim. Try stating the truth for once.

      Apparently there is no link to any verifiable source - just another lie in a long list of lies, as usual.

These numbers just get worse and worse as you play more and more. You can be consoled by the fact that the taxes you pay will go toward buying another fancy jet for the CEO of the corporation that owns your favorite casino.

Kevin, I think it'll be quite the opposite.  Once the accountants inform their whale clients that "winning $9 means you must lose $10 to break even with the IRS", these whales will flee Las Vegas and head to Canada or other places.  The casino CEO's might be flying Spirit Airlines instead of a corporate jet.

Hand Pay limit raised to $2000

This is the (small) silver lining in the bill for gamblers.     Unfortunately that $2000 is still going to hit 50 cent video poker players with a royal....    SO its really only a gift to slot players.

  You might want to read the WHOLE article you reference.

I think I saw that the hand pay number will adjust yearly with inflation also.

From a tax standpoint, how they pay you and whether or not you get a W2G is utterly irrelevant. A lot of people who should know better call it a "taxable" win. Well, you drop a nickel in a JOB macine and get two pair, that five cents you just won is just as taxable as if you had gotten a royal on a dollar machine.