Trump Hints He May Be Willing to Abolish Tax on Gambling Winnings

President Donald Trump has been known for his off-the-cuff remarks, which have often raised hopes but less often been delivered on. Now, POTUS has suggested that he is inclined to “think about” lifting the tax on gambling winnings.

POTUS Says Gambling Winnings Tax Abolishment a Possibility

This suggestion, as exciting as it sounds, is controversial in many ways. While the exact tax income from gambling winnings is unknown, research suggests that people report as much as $35.8 billion from gambling winnings.

Eliminating this tax base could have a deeper impact on the economy, as it continues to chisel away at revenue streams at a time when the budget deficit has grown at an overwhelming rate. President Trump spoke in his customary non-committal way.

When asked by journalists at Air Force One whether he would consider the measure, President Trump briefly mused on it and said:

“We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime, tax on gambling winnings, I don’t know. I’m gonna have to think about that.”

The implications of such a proposal would be significant. Presently, anyone who wins more than $600 needs to report this income through a W-2G form and pay tax on it. The only alleviating factor is gambling losses, which are subtracted from your winnings, in which case a new base for your tax is calculated.

Americans Do Love to Gamble – Would They Appreciate the Tax Abolishment?

For gambling winnings of more than $5,000, players pay a 24% tax. Despite the controversial thought, President Trump’s “One Big Beautiful Bill Act” signed into law over the summer has already eliminated tax on tips and tax on overtime, meaning that POTUS has been open to dispensing of tax streams that his administration finds predatory.

Getting rid of the gambling winnings tax, though, feels a little more like playing to your political base and less so a prudent governmental decision, however. An estimated 60% of Americans gambled in the past year, according to data by the American Gambling Association, a trade group.