In making the case for a new rule, Besharov cited a section of the U.S. tax code that exempts gambling winnings from taxation in the country of origin.
“The United States is the only developed country in the world that does not have a system of taxation in place for gambling income,” he said. “That’s how unique our system is.”
Noting that gambling is currently legal in most states, and that Congress has not acted to ban it, Besharov said gambling is an area of the law that falls to the states.
“With gaming, we all want to make sure that people are being honest about what they’re gambling on daftar situs slot online and making sure that the states and the territory are being honest with taxpayers on what they’re getting in return,” he said. “We are a federal system and the tax code is federal.”
Attorney General Conway appeared to give the proposal a green light, asking for the study, arguing that the issue raises “serious constitutional questions,” and ruling that the study be carried out by a state or a local government.
“It’s unconstitutional for the federal government to tax income,” Conway said.
At Tuesday’s meeting, Conway referred to the gambling income exemption contained in the U.S. tax code. In doing so, he outlined the existing rules in the code and used them to argue for the gambling study.
“Some would say, ‘If you exempt gambling income, that means it’s fair game for the IRS to tax it,’” Conway said. “That’s an illusion of that code.”
Attorney General Conway said he has concerns that the gaming study would unnecessarily burden states and local governments.
For example, he suggested that the study could include those who engage in the use of “an electronic, computer, daftar situs slot online automated system or network” that generates or makes available “gambling-type games, sports wagering, lotteries, roulette or other wagering games or sports.”
“What is the agency going to do with that?” Conway asked. “We don’t have any policies on how to handle that. We’ve never had any.”
Citing the need for more local control on important matters, he added, “The last thing we want is for the IRS to become a one-size-fits-all regulator.”
Conway also suggested the study could include those who are simply involved in the buying and selling of shares in the result of gambling on events such as sports contests or horse races.
He also suggested that the study include the issue of the aggregate winnings of people who have gambling “experiences” online or via Internet gambling, and noted that the U.S. Justice Department recently took the position that online casinos are illegal.