LAS VEGAS (KLAS) — A proposal from Democratic Nevada Sen. Catherine Cortez Masto to shut a loophole requiring gamblers who lose cash to pay taxes on their losses failed an preliminary check Thursday after Republican objection.
Cortez Masto launched the Facilitating Helpful Loss Limitations to Assist Our Distinctive Service Financial system (FULL HOUSE) Act on Thursday to repair a change within the tax code written into President Donald Trump’s funds invoice. No Democrat voted to assist the so-called “Big Beautiful Bill,” which the president signed into legislation final week.
As written, the brand new tax code will enable bettors to deduct 90% of their losses on their annual taxes. The earlier legislation known as for a 100% deduction. The brand new tax code goes into impact in January.
Talking on the U.S. Senate Flooring, Cortez Masto described the change as forcing gamblers to pay taxes on their losses.
“They would literally be paying taxes on money they don’t have,” Cortez Masto mentioned. “This makes no sense.”
Cortez Masto tried to go the invoice by unanimous consent, an motion that enables it to maneuver ahead if no senator objects. Nevertheless, Republican Indiana Sen. Todd Younger objected in an try so as to add an modification to Cortez Masto’s proposal affecting non secular exemptions.
“It is a shame that we cannot pass this commonsense [act] because Republicans want to weigh it down with unrelated measures that they voted to support,” Cortez Masto mentioned in an announcement. “This is a Republican piece of legislation that is actually causing people to pay taxes on money they lost. It makes no sense. And that’s all this is, is to try to fix it… so I’m disappointed, but I am not done.”
Nevada Democratic Sen. Jacky Rosen additionally spoke in favor of the invoice on the Senate Flooring.
Democratic Nevada Rep. Dina Titus launched an analogous invoice within the U.S. Home on Monday to repair the availability. All of Nevada’s congressional delegation, together with lone Republican Rep. Mark Amodei, helps it, Titus mentioned earlier this week. A consultant from Amodei’s workplace didn’t return a request for remark.
In an announcement earlier than the invoice’s passage, representatives with the American Gaming Affiliation mentioned they “will work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.”
