Tax breaks to bet foriegn Tracks

[Suff]

Todays editorial in The USA today touched on the Tax breaks that the Bush Administartion have given out.


Listed there was "Bettors of Foriegn Tracks"---$28 Million.

Anybody heard or know what these breaks are?

[Suff]

http://www.usatoday.com/news/opinion/editorials/2004-07-05-our-view_x.htm

Heres a Link to the op-ed.... The online version..

In my PRINT edition.. that I have right here with me is a Graphic box entitled "Christmas in July" and it lists a breakdown of the Tax breaks


14 Billion.. energy
1 Billion aircraft lessors
92 million Cieling fan importers

25 Million Foriegn Race track Bettors

[cryptic1]

I would assume it has something to do with the withholding
tax. When foreigners cash any bet over 300-l we have
30% of the the winnings witheld by the IRS. If you file a U.S.
tax return you can claim back the 30% and have it returned in
full. The procedure is a little more complicated but its relatively
easy to do.

Cryptic1

[MikeH]

Although I'm basically a conservative, I dislike Bush. However, any reporter that calls this proposed tax law change a "tax break" is either completely incompetent or very biased.

Tracks in the rest of the world will not co-mingle pools with the United States because of our 30% withholding requirements (we call them "signers..."). If you live in Canada, work in Canada, are a Canadian citizen and never come to the U.S., but you place a Pick 6 bet through America Tab, EBetUsa, etc., and hit it "big," online companies based in the U.S. must withhold 30% tax, which can be VERY difficult to get back. Ask a CPA what he charges to do a non-resident U.S. tax return (I simply don't do them because I don't have the expertise.)

Consequently, we are losing a lot of business, because places like Canada (that have a different method of taxing gaming than the U.S. does) set up their own pools that (obviously) are not as attractive to a bettor because they aren't that big.

The U.S. isn't losing much tax revenue, because, if no one co-mingles, there's nothing to tax. The $28 million "Tax Break" is most likely the estimated taxes on the business that we would get from outside the U.S., but we won't get it without the tax law change so there's no tax to lose.

I'm sure this doesn't surprise many of you here, but, as a CPA, I'm amazed how rarely the Press has a good grasp on tax and financials matters (and I'm sure each of you in your own line of work has seen the same thing.)

Just out of curiosity. does anyone know if this PROPOSED tax law change was made? The racing industry has tried for several years to get it changed, and I heard that they were close to getting it passed this year.