Posted by
Andrews on Friday, December 14, 2007 9:34:04 AM
Ever hear the FairTax proponents talk about how it is "simple" and "easy to administer"? How it "gets rid of the IRS" and has "no exemptions"?
Well, it seems the gaming industry had some pull and got the first special exemption.
I was researching for my longer essay and found
this. It seems that it is "too hard" to tax each lottery ticket or betting slip, so taxes on gaming are done as total receipts
minus total payouts. In other words, gaming establishments get the first special treatment, getting to deduct their payouts.
So, let me get this straight? It is "simple" to tax each piece of penny candy or pack of gum, but it is "too hard" to tax each lottery ticket or wager?
I have a feeling that someone sponsoring this bill comes from a state heavily influenced by the gaming industry. Or at least has cut a deal with the gaming industry.
And so starts the degeneration of the "Fair" Tax into a welter of exemptions and special cases, just like the one we have now.
Somehow I am not surprised.
Update 12/14/2007
Just to clarify, it is not so much the way the gaming industry pays that is a problem. Paying out a percentage of total revenues makes sense, and should probably be used for all industries, as it is easier than taxing by tracking each purchase.
No, my complaint is that the gaming industry gets to deduct their payouts. No other industry deducts losses. Everyone else is taxed on gross revenues alone. The gaming industry, and the gaming industry alone, gets to reduce their gross revenues by a category of costs, which seems contrary to the whole FairTax philosophy.
As I said, it just sounds too much like the gaming industry lobbyists had a little more pull with those drafting the bill than they should have.