How does legal gambling HELP taxes.?

March 1, 2014

Gambling

Question by laura: How does legal gambling HELP taxes.?
im writing a research paper on how i think gambling should be legal but its hard to find good sources on the subject of gambling. I need help telling how gambling can help with peoples taxes.

Best answer:

Answer by Masterblaster
When people go to casinos and gamble, anything they win is taxed at a special rate for prizes. Usually, about half of the winnings go to the government. Because the government gets so much money from the casino, in theory, it won’t have to raise taxes on people’s normal income (their wages, salaries, etc.)

The downside, supposedly, is that casinos attract crime, which requires more tax dollars to combat.

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2 Responses to “How does legal gambling HELP taxes.?”

  1. Ranger4402 Says:

    Let’s say your town needs more money coming and and tax increase won’t set well with the voters. So instead of a tax increase, the town allow gambling and taxes the sales or profits of the casino. Now that town gets the money it needs without raising taxes. The people who gamble pay this tax and they voluntarily choose to pay by gambling.

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  2. Leah Says:

    pretty much what everyone else said. While people can win big in gambling, there is a HUGE tax on those kind of winnings. Also, people loose big in casinos as well. So I suppose it could be argued that gambling can help ease tax or at least help to keep it consistant.

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