IRS Withholding on US Tournament Winnings Starts in 2008

[DavidNB]

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This is such [censored] cause the guy who plays tourneys for a living and pays $500 a buy in 10 times then finally cashes for like 10k or whatever has to let the gov keep his money while he hopes and prays they give it back at the end of the year.

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The IRS just can't decide to keep money at the end of the year, it doesn't work like that. If you didn't have the income to pay that much in tax, you would get a refund.
It all works in the end.

[Jimbo]

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I don't understand why poker players haven't been supporting the national sales tax also known as the Fair Tax

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The "fair" tax creates a strong incentive for people to hoard and save money instead of spending it. Remember that a dollar can only be made when someone else spends a dollar. Fewer dollars spent means fewer dollars to be earned by you and me.

In the context of poker the buy-in (or cash-out) would likely be considered spending, and incur the tax. It would be extremely naive to think that greedy politicians are going to leave poker money untaxed. Even proponents of a sales/use tax admit that one of the big dangers is that we wind up with a sales tax PLUS the current income tax.

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Apparenly you are under the mistaken impression that Americans (in general) don't spend every dollar which hits their pockets. A large majority spend every dollar they bring in (and then some), this will continue with the fair tax, the biggest difference is they will have more money to spend.

You said that the fair tax penalizes the poor. Do you really belive that the poor are able to utilize deductions that are available to the rich??? Ask how many folks in Harlem will be utilizing the new deduction this year for home security systems??

Also, the HB that is proposed as the fair tax would repeal the income tax amendment and end income taxes. A lofty goal but one which must happen for the fair tax to work. Please read more about it before condeming it.

The current system incourages people to hide income. And it happens a LOT. Do you think illegal aliens are currently paying a fair shar of the tax burden?? How about drug dealers? Strippers??? and a lot of cash poker players????

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Everyone I know who makes between 100-500k/year pays taxes on less than 30k. And its apparently all aboveboard, or their lawyers and accountants have lied to them.

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It is more liekly that everyone you know is lying to you than any other reasonable explanation.

Jimbo

[Merkle]

Jimbo,

I agree with you in the earlier thread that comped rooms and meals are probably taxable. But here I disagree, There are so many legal ways to reduce taxable income if you have the funds to do so.

[Legislurker]

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I don't understand why poker players haven't been supporting the national sales tax also known as the Fair Tax

[/ QUOTE ]

The "fair" tax creates a strong incentive for people to hoard and save money instead of spending it. Remember that a dollar can only be made when someone else spends a dollar. Fewer dollars spent means fewer dollars to be earned by you and me.

In the context of poker the buy-in (or cash-out) would likely be considered spending, and incur the tax. It would be extremely naive to think that greedy politicians are going to leave poker money untaxed. Even proponents of a sales/use tax admit that one of the big dangers is that we wind up with a sales tax PLUS the current income tax.

[/ QUOTE ]

Apparenly you are under the mistaken impression that Americans (in general) don't spend every dollar which hits their pockets. A large majority spend every dollar they bring in (and then some), this will continue with the fair tax, the biggest difference is they will have more money to spend.

You said that the fair tax penalizes the poor. Do you really belive that the poor are able to utilize deductions that are available to the rich??? Ask how many folks in Harlem will be utilizing the new deduction this year for home security systems??

Also, the HB that is proposed as the fair tax would repeal the income tax amendment and end income taxes. A lofty goal but one which must happen for the fair tax to work. Please read more about it before condeming it.

The current system incourages people to hide income. And it happens a LOT. Do you think illegal aliens are currently paying a fair shar of the tax burden?? How about drug dealers? Strippers??? and a lot of cash poker players????

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Everyone I know who makes between 100-500k/year pays taxes on less than 30k. And its apparently all aboveboard, or their lawyers and accountants have lied to them.

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It is more liekly that everyone you know is lying to you than any other reasonable explanation.

Jimbo

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I know the people they use as well. Most of them have commercial websites owned by a corporation offshore that buys everything they have from meals to cars or their home.
Whats left over is funneled to a trust. Anyone who doesn't work for a paycheck can do it.

[frommagio]

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Everyone I know who makes between 100-500k/year pays taxes on less than 30k. And its apparently all aboveboard, or their lawyers and accountants have lied to them.

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Ridiculous. Everybody that I know in that category is paying full freight, and they're all in AMT - which means they've even lost their deductions. They're paying considerably more than full freight.