I have changed my mind – asserting a woman’s prerogative!
Recently, when asked about the IRS proposal to lower the figure for W-2Gs on slot wins from $1200 to $600, I wrote the following:
Some are suggesting a mass write-in effort by gamblers to protest, but I don’t think there would be enough participation to be influential. More successful will likely be the casinos’ efforts. They hate this idea as much as the players do and their lobbyists are already busy in Washington citing the problems of increased paperwork, irritated customers, and added costs, to name just a few. So I’m going to sit back and quit worrying about what might happen in the future. There’s time enough to deal with any negative tax changes if/when they do happen.
However, I have been receiving emails from the American Gaming Association (AGA) that have convinced me that there needs to be a strong grass-roots protest. Here is part of the most recent email, with some specific recommendations on how we each can individually effectively join this protest:
We believe it is critical that the IRS hear from American consumers who enjoy the first-class entertainment experience that the U.S. casino industry provides and from the millions of U.S. workers whose job depends on gaming. With a looming June 2 deadline for public comments regarding the IRS’ potential consideration to lower the slot gaming winnings threshold from $1,200 to $600, it’s imperative that the IRS hears from a wide array of voices about the negative implications that any reduction would have.
Their recommended message:
- The IRS could soon force casino guests to dramatically increase the level of paperwork, which would severely undermine the customer experience.
- Specifically, the IRS may consider lowering the tax reporting threshold on slot machines from $1,200 to $600.
- Not only has this $1,200 threshold existed since 1977, but when accounting for inflation indexing the threshold should actually be nearly $4,700 today.
- This potentially burdensome requirement, for taxpayers and for the IRS, would cost states and cities significant tax revenues that pay for vital public services, such as teachers, firefighters and road improvements.
- Please tell the IRS not to reduce the slot gaming winnings threshold from $1,200 to $600 because it would severely harm the customer experience and reduce state revenues.
Here are ways to spread the word:
- Submit a comment directly to the IRS before June 2. http://www.regulations.gov/#!documentDetail;D=IRS-2015-0006-0001
- Contact your members in Congress: https://www.opencongress.org/people/zipcodelookup.
- Take to social media:
Nearly 100% of Congress is on Twitter and Facebook: As your constituent, I’m asking you to please tell the IRS not to reduce the slot gaming winnings threshold from $1,200 to $600 because it would severely harm the customer experience and reduce state revenues. #NoMorePaperwork - Sign the online petition: http://www.gettoknowgaming.org/irs-petition
Many of us who live along the Great Lakes have already solved the IRS problem. We cross over to Canada. No tax on winnings at all. If the IRS lowers the taxable amount to $600 my husband and I will probably stop making our yearly trip to Vegas and spend more time at Niagara Falls instead.
I think we should be communicating with the casinos we frequent, letting them know that we will not be playing should the threshold be lowered. They have the big bucks lobbyists who will much more effectively address this issue.
Don’t you think that writing such a letter/blog post/email/etc. would instantly flag you as a no-good scumbag GAMBLER? The IRS has already determined that gambling income is somehow tainted and that those who earn it should pay IMMENSE amounts of tax on it–more than any other kind of income! Hell, drug dealers are allowed to count losses against income when determining tax liability, but not gamblers!
I would VERY STRONGLY advise against anyone calling attention to themselves in this manner. The risks are huge and the potential rewards miniscule: what are the chances that a few barely audible squeaks of protest will even be noticed, let alone be acted upon (except perhaps, in a negative sense) by our Tax Gods? And what about the risks of getting “noticed” by the IRS?
The argument for not only not reducing the reporting threshold but actually substantially increasing it has commonsense merit, but since when did common sense dictate any government actions? The IRS has one single, myopic focus–to increase revenue. It reacts to any such opportunity the way a dog reacts to a bowl of food–by salivating and lunging at it.
Does the IRS actually care about the “customer experience”? More importantly, such a change will cause a significant amount of additional paper work for the casino AND the player which will reduce the actual amount of machine playing time. This will reduce the casinos’ income and therefore the amount of taxes the casinos pay.