Congressian pressure to abolish tax advantages for gambling, advocated by Mike Pence's support group
Former Vice President Mike Pence's Group Opposes Tax Deductions for Gambling Losses
The Advancing American Freedom (AAF) group, led by former Vice President Mike Pence, has voiced its opposition to tax deductions for gambling losses. In a policy memo sent to federal lawmakers, the group argues that such deductions encourage gambling and reward unproductive behavior.
The AAF contends that gambling losses should not be deductible at all, citing the negative social and economic consequences associated with gambling. They argue that since "nearly all gamblers lose money," allowing deductions indirectly subsidizes gambling losses, which they view as harmful.
Moreover, the AAF believes that restoring or maintaining gambling loss deductions incentivizes an unproductive behavior that does not contribute positively to economic growth. They argue that eliminating these deductions would increase tax revenues because bettors would owe taxes on their full winnings regardless of losses, thereby simplifying tax collection and generating more government revenue.
The AAF's stance against gambling loss tax deductions extends to bipartisan efforts to restore or increase deductions. They have opposed bills such as the FAIR BET Act and efforts led by Nevada Congresswoman Dina Titus, maintaining that even the recent reduction to a 90% deductibility cap in the One Big Beautiful Bill Act does not go far enough.
Congresswoman Titus, among others, is fighting against the One Big Beautiful Bill Act, warning that it could push people to use unregulated platforms. The bill, which recently capped the gambling loss deduction at 90%, has been met with opposition from various quarters.
In summary, the AAF's core argument against allowing gambling loss tax deductions is that these deductions foster and financially support a harmful, unproductive behavior (gambling), which leads to negative social consequences, and that taxpayers should not bear the financial cost of those losses through the tax code.
- The AAF's opposition to tax deductions for gambling losses, as expressed by former Vice President Mike Pence's group, can be linked to concerns about their impact on business finance, as they perceive the deductions as encouraging gambling and subsidizing unproductive behavior.
- The AAF also argues that politics and general news should consider the negative social and economic ramifications associated with gambling loss tax deductions, as these deductions can easily lead to more government involvement in the casino-and-gambling industry, potentially encouraging harmful and unproductive behaviors.
