first off... it's a prize.. you don't see them taxing the dollar scratch off's that you win in a gas station...
secondly.. if they tax you when you first win the money, then why do they do it again at the end of the year?
consider this:
you work, you get money.. your money is taxed, they take a certain amount out of your paycheck (1st tax), then when you use your money to go buy stuff you get taxed again (2nd tax), and for the store(s) to even have the item, they have to buy it from the company which taxes them (3rd tax) and they have to buy the resources to make the product (4th tax).
2007-09-29 05:22:05 · 7 answers · asked by Anonymous 3 in Business & Finance ➔ Taxes ➔ United States
Sorry, but it is not double taxed. Income taxes may be withheld from the winnings and you must claim those winnings on your return but you get a credit for the taxes that were withheld. Therefore the tax is NOT doubled.
Legally you do have to claim those small wins though there is no means in place for them to track those. Yet...
Your "consider this" rant is irrelevant to the tax on gambling winnings.
2007-09-29 05:41:08 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Sounds good to me. Just add a provision for those who don't have to file. Box on form "do you wish to participate in the national income tax lottery? (adds X dollars to your total tax due)? I think we should also do something for those who sign up as organ or bone marrow donors.
2016-05-21 04:49:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Because we, as a people, in the USA, don't complain enough, or threaten to with-hold our vote enough, to convince our representatives to change the tax code.
Do any of you know that Congress men and women are in the top 1% of wage earners in America? Do you think they pay as much tax as you do...? Doubt it.
I know that the entire Rockefeller family for last year, paid less taxes than I did, and I surely did not earn more than them......
2007-09-29 07:40:49 · answer #3 · answered by graciouswolfe 5 · 0⤊ 1⤋
The money comes without labor. It is not earned, that is why the tax is double. Picture the double tax to be the standard tax, and that they cut that in half when we earn our money.
2007-09-29 05:28:48 · answer #4 · answered by perfectlybaked 7 · 0⤊ 2⤋
well they don't tax the small ones, until it's over a thousand (I think??) then it's looked at like a bonus and taxed at almost 50%
2007-09-29 05:30:18 · answer #5 · answered by Theresa M 4 · 0⤊ 2⤋
It's all about money! The more you have the more they take.
2007-09-29 05:29:59 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Welcome to the real world!
2007-09-29 06:20:58 · answer #7 · answered by r_kav 4 · 0⤊ 0⤋