vpFREE2 Forums

IRS 25% witholding of poker winnings, are slots next

#1

Granted, you are correct, it is the fault of Congress.

Let's say that you have a store that sells widgets. Each widget costs you
$200. You sell them for $300. You owe tax on the $100, right? How long
would you stay in business if you had to pay immediate tax on the entire $300
sales price? Sooner or later you'd run out of money to buy more inventory
because the IRS had it all.

Joe - and all tournament players in any sport or game - are really running a
business. The cost of doing business (inventory) for Joe is the entry fees.
If you keep immediately taxing Joe on his entire winnings (sales price)
then Joe will be out of business and the IRS will have it all. Sure, Joe and
your widget store will eventually get big fat refunds from writing off the
inventory cost, but there's a good chance it'll be too late to save the business.

- Brian in MI

BL writes:

But, Joe still has only paid the taxes that are due.

And, the loans are not made to the IRS. The IRS is only the "middle man".
Take up your
argument with the Congress that writes the laws that the IRS acts on.

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[Non-text portions of this message have been removed]

#2

SIGH!

Unfortunately, all of you are simply using bandwith here to "preach to the choir". We all
hear you and we all agree with you.

Ranting and raving here about the situation is not going to do anything. You have to take
it up with your congresspersons, especially in the House of Representatives. That is the
only way that real tax reform will get done.

Take all of these arguments and think up as many new ones as you can and then go visit
your representative, in person. Have he/she listen to you and make sure that they really
understand what you are saying. Then, maybe something will happen.

..... bl

ยทยทยท

--- In vpFREE@yahoogroups.com, Marksalot300@... wrote:

Granted, you are correct, it is the fault of Congress.

Let's say that you have a store that sells widgets. Each widget costs you
$200. You sell them for $300. You owe tax on the $100, right? How long
would you stay in business if you had to pay immediate tax on the entire $300
sales price? Sooner or later you'd run out of money to buy more inventory
because the IRS had it all.

Joe - and all tournament players in any sport or game - are really running a
business. The cost of doing business (inventory) for Joe is the entry fees.
If you keep immediately taxing Joe on his entire winnings (sales price)
then Joe will be out of business and the IRS will have it all. Sure, Joe and
your widget store will eventually get big fat refunds from writing off the
inventory cost, but there's a good chance it'll be too late to save the business.

- Brian in MI