Summary
President Donald Trump is thinking about removing federal taxes on gambling winnings as part of a larger plan to change the U.S. tax system. This idea could affect many people who gamble, as well as government money. The change follows the introduction of other tax breaks, but experts are concerned about the impact on government debt.
Key Facts
- President Trump is considering getting rid of federal taxes on gambling winnings.
- This idea is part of a broader move to change the U.S. tax system with recent laws like the One Big Beautiful Bill Act (OBBBA).
- OBBBA includes tax breaks like no tax on tips and overtime.
- Nearly 60% of U.S. adults gambled in the past year, according to the American Gaming Association.
- Currently, gambling winnings over $600 must be reported for tax purposes, and $5,000 or more can trigger a tax withholding of up to 31%.
- Tax proposals have potential impacts on taxpayers and government revenue, with experts worried about increasing the federal deficit.
- The IRS considers gambling winnings fully taxable.
- President Trump also mentioned plans to possibly cut income tax significantly, citing increased tariff and investment revenues as offsets.
