Tuesday, April 7, 2009

Tax Reform

More proof that we need to overhaul our tax code.

Foreigners [sic] nationals who don't live in the U.S. but like to place wagers here can really win big. Any money they win on horse or dog races in the United States is exempt from U.S. taxes. That means they don't have to cough up the 30 percent withholding tax that unlucky Americans must pay. This provision was also included in the 2004 jobs act, at the behest of Kentucky Sens. Jim Bunning and Mitch McConnell to help ease the suffering of bet-taking race courses. This break on legal gambling doesn't have anything to do with taxes you are supposed to pay on illegal activity. That's right. Anyone who receives bribes, deals drugs, takes kickbacks or steals property is expressly required to pay taxes on that income, reminds Luscome. Of course, they can write off their attorney's fees as a business expense.

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