If enacted, HB1661 is expected to significantly alter the financial landscape for the gaming industry by eliminating a tax that operators view as unjust. This change could foster increased revenue for gaming businesses by enabling them to retain more of their earnings, allowing for potential expansion and job creation within the sector. The bill addresses the historical context surrounding these excise taxes, arguing that they stem from outdated frameworks that fail to reflect the current state of gambling practices across the nation.
Summary
House Bill 1661, titled the 'Discriminatory Gaming Tax Repeal Act of 2023', proposes the repeal of excise taxes on wagering as outlined in Chapter 35 of the Internal Revenue Code of 1986. This bill is introduced with the intent to remove what proponents argue are discriminatory taxes that unfairly burden the gaming industry, thereby promoting a more equitable business environment for gaming operators. The bill is spearheaded by Congresswoman Dina Titus, alongside co-sponsors from both parties, demonstrating a broader interest in reforming taxation policies affecting the gaming sector.
Contention
Debate around this bill centers on the ramifications of repealing such taxes. While supporters laude the economic relief it would provide to gaming businesses, critics express concerns regarding the potential loss of state revenue that these excise taxes generate. This concern is particularly pronounced among lawmakers who rely on gambling taxes to fund essential services and programs. Thus, discussions surrounding HB1661 reveal a complex balancing act between promoting industry growth and ensuring state fiscal responsibility.
SALT Fairness Act of 2023 This bill repeals the temporary restrictions in taxable years 2018 through 2025 on the deductibility of state and local taxes.
Assuring Medicare’s Promise Act of 2023 This bill increases net investment income tax revenues by applying such tax to the trade or business income of certain high income taxpayers and includes the increased tax revenues in the Federal Hospital Insurance Trust Fund.
Federal Employee Combat Zone Tax Parity Act This bill excludes from gross income, for income tax purposes, the compensation of a federal employee who served in a combat zone or was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone. The bill terminates the exclusion two years after the end of combatant activities in such zone.
Small Business Tax Fairness and Compliance Simplification Act This bill expands the tax credit for a portion of the employer-paid Social Security taxes for employee cash tips to include beauty service establishments. (Under current law, the credit is limited to tips received for providing, serving, or delivering food or beverages.) The credit applies to tips received in connection with providing beauty services to a customer or client if tipping employees who provide the service is customary. Beauty services include barbering and hair care, nail care, esthetics, and body and spa treatments. The bill also (1) establishes an employer tip reporting safe harbor for beauty service establishments, and (2) specifies reporting requirements for income received from renting space to individuals who provide beauty services. The employer tip reporting safe harbor for beauty service establishments provides an exemption from certain Internal Revenue Service tip examinations for employers who meet certain requirements for educational programs, reporting procedures, compliance with tax law, and recordkeeping.
No Hires for the Delinquent IRS Act This bill prohibits the hiring of additional Internal Revenue Service (IRS) employees until the Department of the Treasury publicly issues a written certification that the IRS does not employ any individual who has a seriously delinquent tax debt (i.e., an outstanding tax debt for which a notice of lien has been filed in public records).