Harry, I agree with you 100%, except for your last parenthetical line.
The tax code does treat gamblers unfairly, particularly those who
engage in the activity as a hobby. In addition to the AGI effects,
those who live in states which tax all gambling wins with no offsets
for losses are especially vulnerable to unfair taxation.
The original post in this thread may have been intended as a
cautionary message, but it didn't come off as such. Instead,
it sounded like sour grapes re: the "rebate" from someone
who is already fortunate enough to enjoy a very nice income.
He isn't the only one with a slight case of tunnel vision on the
subject. I have a close friend who, along with his wife, enjoy a
combined income approaching 200K per annum. He was whining
about how unfair it was that they would get no "rebate" at all.
I responded by bombarding him with links to stories regarding
Michigan citizens - good, honest, hardworking folks - who have
lost their jobs due to no fault of their own, and have subsequently
lost their homes, savings, and everything else and are now forced
to sleep in homeless shelters & under bridges. I believe that the
"rebate" was intended for folks like those, as well as folks who aren't
that destitute (yet) but sure could use the help. And if you're still
reading this far, don't think "Oh, that's in Michigan, it's NIMBY",
you'd better think again. A growing cacophony of economic
forecasters are using this state as an example of where the rest
of the USA is heading.
OK, my soapbox will be stored away now.
- Brian in MI
In a message dated 3/17/2008 11:22:21 P.M. Eastern Daylight Time,
harry.porter@verizon.net writes:
Everything is relative.
It's evident that the majority of non-gamblers have little empathy for
the tax complications introduced by gambling -- even when it comes to
the Social Security earning granny who ends up paying taxes on a $1200
jackpot, lacking sufficient other deductions from which to effectively
claim offsetting losses.
The AGI distortion of gaming income that results because offsetting
losses are taken "below the line" is aberrant, no matter what your
sensitivities toward a particular taxpayer are.
(FWIW, I viewed the original post as cautionary, not a cry for sympathy.)
- Harry
**************It's Tax Time! Get tips, forms, and advice on AOL Money &
Finance. (http://money.aol.com/tax?NCID=aolprf00030000000001)
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