Gambling Loss Write-Offs Threatened Under New Hawaii Bill

The state of Hawaii briefly toyed with the idea of legalizing gambling. The idea was quickly shot down by lawmakers who now want to take their distaste for gambling even a step further.

Representative Pono Chong has introduced a Bill that would no longer allow residents of Hawaii to write off gambling losses against their winnings. Chong claims that it is hypocritical to allow such a write off.

"At the beginning of the session, when we were facing the $2 billion shortfall, we were looking at every way to raise revenue without raising general excise taxes," said Chong, "This was an idea that came up. Is it good policy to allow people to deduct something that we don't allow in the state?"

Of course, the state has no problem taking the taxes on money that is won in other jurisdictions. It is a point that several residents were quick to point out.

"The government takes money on our winnings," said observer Terrence Wiggins, "But then they are going to say that because it is illegal in Hawaii we should not be able to write off our losses. That seems like a double standard."

Currently, a taxpayer can deduct gambling losses that are equal to gambling wins. If their losses are above their winnings, they cannot deduct any amount above that which was won.

Vacationing in Las Vegas is popular among Hawaiians, and that is also something the state is trying to curb. "Removing this tax incentive may encourage taxpayers to vacation within the state, thereby assisting our already hard hit visitor industry," said Kurt Kawafuchi, the Director of Hawaii's Department of Taxation.

May 10, 2009
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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