lotteries

[margrace]

How come an American can win 65million and keep 18million and a Canadian can win 37 million and keep it all, just curious?

[Renegade]

How come an American can win 65million and keep 18million and a Canadian can win 37 million and keep it all, just curious?

In the US gambling winnings are taxable, in Canada they are not (unless you are a professional gambler). I suspect that the reason that if gambling winnings were made taxable, then logically gambling losses would be tax deductable, and as much money as is won in lotteries, more is lost.

[margrace]

In the US gambling winnings are taxable, in Canada they are not (unless you are a professional gambler). I suspect that the reason that if gambling winnings were made taxable, then logically gambling losses would be tax deductable, and as much money as is won in lotteries, more is lost.

So are losses taxable in the US

[Renegade]

So are losses taxable in the US

Yes, but only to the extent of gambling income.

IMV, that is a double standard. If they unconditionally tax gambling income, they should unconditionally allow the deduction of losses.

[mcqueen625]

That is a very good question and one I have written to the Finance Minister about. I feel that instead of nickel and dimming seniors and those on CPP Disability they could instead raise the personal exemptions for all to a least the poverty level, and make up part of this difference by taxing winnings from lotteries, casinos, and the race track, just as they do south of the border. Why should anyone be able to walk away tax free with $37Million when this same government is chasing seniors if they happen to owe $.05.

Collecting the tax would be quite easy, because it gets collected right off the top, and is sent to the tax man with your Social Security # attached to it. In Canada we could quite easily do the same thing by taxing any winning on the spot. If people choose to gamble they take a chance of losing their shirts, so why not tax any winnings, and not be able to write off loses. I'm quite sure in the U.S. the ordinary Joe off the street cannot write off loses at the neighbourhood casino, although when they win they must pay the tax-man. Taxing any winnings in Canada particulalrly wins from VLT's would certainly take away the incentive for people to spend their rent into these horrible machines, because then even if they win, they lose. Government won't do that because they are making too much money off the fools who waste their hard earned money by playing the government's voluntary tax on those who are too dumb to realize that the odds of them winning any significant amount are slim to none. These people are like the proverbial BINGO Players who brag about how much they win, but they never tell you how much they have spent on the nights they won nothing.

[August1991]

I feel that instead of nickel and dimming seniors and those on CPP Disability they could instead raise the personal exemptions for all to a least the poverty level, and make up part of this difference by taxing winnings from lotteries, casinos, and the race track, just as they do south of the border. Why should anyone be able to walk away tax free with $37Million when this same government is chasing seniors if they happen to owe $.05.

Why should seniors get a larger personal exemption than those under 65?

Or why do people living in the Yukon and NWT get a special personal exemption?

Why does the Quebec 16.5% federal abatment exist?

Why can Conrad Black fly to Bali and claim the cost as a business expense (just like like your small business neighbour) but civil servants and teachers can't do the same?

If you die married, your spouse will receive your wealth tax free. If you die single, the government will tax your wealth as income in the year of your death and tax it as income tax. Why?

So, excuse me if I pay little attention to questions about whether lottery winnings are taxed. Our tax system has far greater anomalies with far more pernicious consequences.

Edited August 13, 2007 by August1991

[theloniusfleabag]

Dear August1991,

I'll try to give some smart-alecky answers to your questions...

Why should seniors get a larger personal exemption than those under 65?

Well, I would expect that their ability to generate income becomes severely limited, and very few are willing to hire them. Further, most have been taxed all their life, so it is almost like a 'tax finish line'.

Or why do people living in the Yukon and NWT get a special personal exemption?

Because no one would live there for fun, or at least without incentives.

Why can Conrad Black fly to Bali and claim the cost as a business expense (just like like your small business neighbour) but civil servants and teachers can't do the same?

Mr Black allegedly cheated...the small business owner is allowed to 'expense' one business trip a year. Civil servants know more ins and outs about dodging tax than I will likely ever know. They are the benchmark of what you can get away with. I would look at their exemptions and use it as a model for yourself, if you can.

If you die married, your spouse will receive your wealth tax free. If you die single, the government will tax your wealth as income in the year of your death and tax it as income tax. Why?

I suppose it could be argued that the spouse made invaluable (and intangible)contributions to said wealth, while giving your money to someone else is seen as a gift that the recipient didn't 'earn'.

I would like to see the abolition of income tax, and a raising of the GST to 10% (or more) in it's stead.

Edited August 14, 2007 by theloniusfleabag

[runningdog]

"I would like to see the aboloition of income tax, and a raising of the GST to 10% (or more) in it's stead."

Exactly! It'll never happen, but it would be much more fair to the majority of Canadians.

[M.Dancer]

"I would like to see the aboloition of income tax, and a raising of the GST to 10% (or more) in it's stead."

Exactly! It'll never happen, but it would be much more fair to the majority of Canadians.

No not really. All the very rich would have to do is spend their money outside of Canada.

[theloniusfleabag]

Dear M. Dancer,

All the very rich would have to do is spend their money outside of Canada

Groceries wouldn't do so well, at least the frozen ones. I am not about to order a take-out 'Steak Neptune' from Ft.Lauderdale, either. Besides, the 'very rich' bank off-shore at every opportunity already, why not give them incentives in Canada too?

[M.Dancer]

Dear M. Dancer,

Groceries wouldn't do so well, at least the frozen ones. I am not about to order a take-out 'Steak Neptune' from Ft.Lauderdale, either. Besides, the 'very rich' bank off-shore at every opportunity already, why not give them incentives in Canada too?

What most people seem to have a hard time grasping is that a flat tax is harder on low and middle incomes that the upper strata. 10% (or what ever arbitrary number) from 20K eats more of the disposable than 10% from 100K.

Assuming that it is a flat across the board sales tax means that for the person who already spends 80% of their income to survive.....what little left would go to taxes while the upper brackets who spends only 40% to survive.........means as a proportion of his income he is taxed less.

[Michael Bluth]

Yes, but only to the extent of gambling income.

IMV, that is a double standard. If they unconditionally tax gambling income, they should unconditionally allow the deduction of losses.

'

hmm, I'm sure it is probably 'provable' losses. i.e. If you go up to a craps table in Vegas and drop a grand there is no way of proving it. Betting slips from sports books or the track, could be used as proof. Same with lottery tickets.

[Renegade]

'hmm, I'm sure it is probably 'provable' losses. i.e. If you go up to a craps table in Vegas and drop a grand there is no way of proving it. Betting slips from sports books or the track, could be used as proof. Same with lottery tickets.

Well I guess it depends what evidence they require. They do require you to declare gambling revenue at the table games even though the casinos don't have a way to track it. BTW, if you do win significant amount in Vegas in other games such as slots, bingo, etc, tax WILL be witheld.

There are some things you should know if you are lucky enough to win. The Internal Revenue Service (IRS) requires all casinos in certain instances to withhold federal taxes if you win over a certain amount. The percentage withheld ranges between 25 and 30 percent depending on how you won.

Taxes on gambling winnings Edited August 18, 2007 by Renegade

[Topaz]

I just think that once the lottery get over 10 Mil. they should then have one million dollar draws after that. One person shouldn't win over 10 million, if its a group, than they should win anymore than 10 million a piece.

[geoffrey]

Why should seniors get a larger personal exemption than those under 65?

Well, they do because they vote more than those under 30.

Why can Conrad Black fly to Bali and claim the cost as a business expense (just like like your small business neighbour) but civil servants and teachers can't do the same?

This point could be morally debated beyond the legal issues.

So, excuse me if I pay little attention to questions about whether lottery winnings are taxed. Our tax system has far greater anomalies with far more pernicious consequences.

I'll drink a (heavily taxed) beer to that.

Well, I would expect that their ability to generate income becomes severely limited, and very few are willing to hire them. Further, most have been taxed all their life, so it is almost like a 'tax finish line'.

Because no one would live there for fun, or at least without incentives.

That's ridiculous. The finish line becomes entirely arbitrary. Beyond that, we can also look at it in terms of productivity. Why give the breaks to those who will never contribute again, while placing the burden on those already contributing?

Emotional issues aside, it would be best to just end all subsidisation of seniors programs (tax and social) and allow those that saved enough to survive and the rest, well, do what they need to do. Supporting or giving breaks to people just because they are old isn't really reasonable. Better yet, maybe they'll all move to another country that does and spare our health care system in the process?

By the way, I could argue that an experienced 70 year old professional has about as much earning potential as someone entering the labour force initially. You've got to go beyond earning potential. Do we give tax breaks to people that aren't as smart (because they won't earn as much) or whatever other factors we decide? Why are we seeking equality? What advantage does that gave to society?

Mr Black allegedly cheated...the small business owner is allowed to 'expense' one business trip a year.

Depends on the business situation, and it's not one trip a year. I think your referring to the shareholders meeting, which still requires some of the parameters of other trips. I could write off 100 trips a year depending on the circumstance. If you found it prudent to stand on a street corner wearing a sign advertising your product in Bermuda for 30 minutes a day, I find it would likely be ethically and legally acceptable to write off much of your trip.

Mr. Black was aquitted on that charge.

I would like to see the abolition of income tax, and a raising of the GST to 10% (or more) in it's stead.

Oooo. Now we are getting there. But what about those poor seniors with no incomes?

I just think that once the lottery get over 10 Mil. they should then have one million dollar draws after that. One person shouldn't win over 10 million, if its a group, than they should win anymore than 10 million a piece.

Who are you to determine people's incomes? If someone is willing to take the risk to potentially win something, then let them. We as a society have no right to prevent them from doing so, ever. Risk is business, it's life. You take risks alot bigger than the $2 6/49 ticket... like getting in your car to go to work... for alot less potential gain.

Let's not try to wedge the government further into our lives, just because you feel like someone shouldn't have x amount of dollars.