Gambling Reforms in Our Tax System

Introduction:

Reforms to the tax system have been debated throughout the history of our tax system. One of the most debated topics surrounding many states is legalized gambling. Many advantages and disadvantages have been linked to his topic, as it has stayed a heated discussion for the state of Texas. Legalized gambling has been linked to economic recovery as well as allowing the state of Texas to capitalize on tourism and providing more jobs. However, negative effects of gambling have been seen in many ways involving moral issues, as well as possibly acting as a regressive tax. I believe that legalizing gambling in the state of Texas is a good idea, and would have positive outcomes as long as it is properly regulated.

Our economy has been recently going through tough times. With the downward spiral of the economy we not only see a loss in jobs that are available, we also see a loss in government funding. As the federal deficit gap keeps widening, the state of Texas also sees negative side effects to the way the economy has been performing. With recent cuts being announced to the state budget, the state of Texas needs to find a solution to make sure that there is enough funding to keep vital programs running. The advantage to legalized gambling is that it can be taxed at both a high and low rate. Most legalized gambling is taxed at a high rate in comparison to other income, but frequent gamblers can also itemize their winnings and deduct any losses at a lower rate. (tax.laws.com/taxes-on-legalized-gambling). I believe that legalizing gambling will be a good solution to finding extra tax revenue that could help fund valuable state programs. It is seen in many states across the country, that legalized gambling is a fairly easy way to generate revenue.

Benefits:

I. Tax Dollars

The main benefit that Texas will see out of this is the increase in tax dollars. There is an argument against gambling that the tax revenue generated wouldn’t be a large amount;...