The solution to all our Tax problems??

[scorcher863]

I am a 20 year old Pissed off Poker Player.

I just recently began a surplus from online poker and now have to face the reality of paying taxes on gains. (Also I read that you must keep track of every single game you play, which sounds like a b*tch)

I am annoyed. I was allll excited from winning, at first, but after reading these msg boards discovered my tax dilemna. During this agitated state, I remembered a book my older brother, who has a passion for politics, gave me to read on the "Fairtax".

Fairtax is being proposed as a national sales tax and completely abolishes all other taxes-FEDERAL PERSONAL AND CORPORATE INCOME TAXES, gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment taxes.

After putting 2 and 2 together (pardon the pun), and because nobody is gonna keep me from my money, I realized the solution to my (and our) problem. The Fairtax.

The Fairtax system raises the national sales tax to 23 cents on the dollar, but is projected to cost about the same in taxes and possibly even lower.

Best of all-the fairtax will simplify a tax code that is miles longer than our own constitution. This would render the IRS to mashed potatoes.

I still believe that somehow the government must keep track of all the money earned so crime can't thrive and cause mass pandemonium.

If this law can function while keeping track of all U.S. money, I believe that this tax will remove our gains taxes. Poker, which can be found on three channels at once any time during the day, has a large enough player base to get this Fairtax ratified. It basically the new american past-time because baseball players are all cheaters.


If your interested in getting some more information, they have a website, www.fairtax.org. When I'm not as tired, I'll research and post presidential candidates who support this tax system.

This is for all those sharks out there, who've gotta get paid!

[TheEngineer]

Sounds interesting. Please post it in Politics and we can all discuss it further.

[PokeReader]

Europeans have a consumption tax. Does not limit "sin" taxes like gambling, cigarettes, and gasoline. Better structure in some ways, but knowning Ways and Means Chair Charlie Rangel, chances of passing anything more ambitious than fixing the AMT are nill.

[MiltonFriedman]

"I still believe that somehow the government must keep track of all the money earned ..."

1. .... do you want the government to know every place and amount whenever you spend your money, after all that is income to someone, just like yours ?

2. Why ??? Are you (a) a fascist, (b)a communist, or (c) just plain like totalitarianism ?


.... "so crime can't thrive and cause mass pandemonium."

This is really sad that this fellow thinks that "crime" requires a totalitarian SuperState.

Just where would online gambling fit into this SuperState, crime-wise ?

[demon102]

do we really have to keep track of all our sesions? cuz I dont do this at all

[1meandog4u]

[ QUOTE ]
do we really have to keep track of all our sesions? cuz I dont do this at all

[/ QUOTE ]

While I am not a tax accountant or attorney, I can tell you my past experiences. I was a prop at most all of the So.Calif b&m casinos in a 20+ year career. I was audited three times. In each case, I was audited for potential income, as well as, deductions I claimed. (collections per hr on the games)

What they required of me was a daily record of wins and losses. Not table by table, merely as simple as... "I started with this much.... and ended with this much.... and the difference is profit/loss.

I kept a simple manual spread sheet for each month, now I use excel, and filed the 12 monthly sheets in my tax records file in case of a future.

That WAS prior to 2001 when I last propped. Not sure how they would treat it now.

[Kurn, son of Mogh]

[ QUOTE ]
do we really have to keep track of all our sesions? cuz I dont do this at all

[/ QUOTE ]

What you are not allowed to do is simply report the net of wins-losses as income. You must report the total of winning "sessions" as income on Page 1 of Form 1040, and the total of losing "sessions" as an itemized deduction on schedule A.

What constitutes a "session?" Use the search function, it has been discussed at length.

If and when you get audited, what they are looking for is a consistent set of records. If they see your record keeping is consistant and honest, you're all set.

One other point. taxes aren't the number one reason for keeping detailed records of your play. You can't analyze how you're playing without records. Keeping good records is a tool for improving your play.

[rando]

FWIW, IMO the "Fair Tax" is a regressive tax that will favor the rich and further imprison the 50 inch HDTV renting trailer park residents of this country, and therefore I think it SUCKS. Paying taxes on what you spend is all well and good, and seems like a flat tax, which in itself is harder on the poor/little guy, as they have less left after taxes. But tell me someone who makes $20MM a year is going to spend $20MM and pay taxes on everything. What about someone who makes $20K?? Yes they will spend it all, so their tax is 23% and the rich guys is 23% of what he spends, plus the 2-3% that is levied on income greater than X? What a joke. Don't support this tax until you read it and see if it agrees with your overall sensibilities, not just your own self-interest at the poker tables.

[Mackerel]

[ QUOTE ]
"I still believe that somehow the government must keep track of all the money earned ..."

1. .... do you want the government to know every place and amount whenever you spend your money, after all that is income to someone, just like yours ?

2. Why ??? Are you (a) a fascist, (b)a communist, or (c) just plain like totalitarianism ?


.... "so crime can't thrive and cause mass pandemonium."

This is really sad that this fellow thinks that "crime" requires a totalitarian SuperState.

Just where would online gambling fit into this SuperState, crime-wise ?

[/ QUOTE ]

While I completely agree with your aversion to a totalitarian state, I fail to see why a National Sales Tax would need to track purchasers. There is already a sales tax on just about everything, but you can still pay in cash without your purchase being traceable (ignoring things like digital video recordings of course). The retailer is responsible for collecting and paying the tax. Do you have some reason to believe this proposal would change that?

Mack

PS - No disrespect intended. I have read many of your posts and always find them insightful. /asskissing

[Richas]

[ QUOTE ]
FWIW, IMO the "Fair Tax" is a regressive tax that will favor the rich and further imprison the 50 inch HDTV renting trailer park residents of this country, and therefore I think it SUCKS. Paying taxes on what you spend is all well and good, and seems like a flat tax, which in itself is harder on the poor/little guy, as they have less left after taxes. But tell me someone who makes $20MM a year is going to spend $20MM and pay taxes on everything. What about someone who makes $20K?? Yes they will spend it all, so their tax is 23% and the rich guys is 23% of what he spends, plus the 2-3% that is levied on income greater than X? What a joke. Don't support this tax until you read it and see if it agrees with your overall sensibilities, not just your own self-interest at the poker tables.

[/ QUOTE ]

QFT