Jason Smith, the chairman of the House Fundraising Committee and a Republican from Missouri, recently stated that the provision in the "Great Beauty Act" to raise the gambling tax was a "bad decision" and hinted that the policy might be overturned by the end of this year.
The clause was originally intended to impose a 10% tax rate on false gambling winnings, changing the original tax mechanism that allowed gamblers to deduct 100% of their losses. Smith believes that this change is extremely disadvantageous to professional gamblers, emphasizing "we are considering repealing the amendment through bipartisan cooperation."
As a key figure in House tax legislation, Smith revealed that "gambling tax reform" might become part of the end-of-year fiscal negotiations. The American Gaming Association (AGA) has also written to Congress, calling for the restoration of the old deduction mechanism and supporting "My Fair Betting Act."
Although the Republicans blocked a formal proposal to overturn it in July, some members later admitted to a lack of understanding of the gambling clause. Currently, if the Democrats concede on other issues, the gambling tax could become a point of compromise between the two sides.
The "Great Beauty Act" is 900 pages long, covers a wide range of content, and is continuously controversial. The gambling clause may become the first item in the act to be explicitly amended, showing that the possibility of cooperation between the two parties on some economic issues is rising.
