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Old 11-04-2005, 05:31 PM
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Default Paying taxes on Poker Winnings...

One thing I don't get is the fact that the US Gov't continually asserts that online poker for Real Money is not legal and never will be...

Yet they want its citizens to, first, acknowledge that they activly participate in an activity they deem to be "not legal"
and, second, to pay taxes on the
"illegal" activity.

My question would be: What is to stop good ol' Uncle Sam from locking you up
the very second you go to him to report your "illegal" income (that you earned by
participating in the activity of Online poker play for Real $$$ that they deem to be illegal)?

Whats it you got to say for yourself, Uncle Sam?

"Ohh...It's illegal...yea, but we still want to tax it...yeah..."

That's like the Gov't saying that selling Crack on the streets is illegal, but, oh yea,
all Drug-dealers cometh forth and please pay taxes on you sale of illegal drugs...
(OK,
not even close to being the same thing, but I am just trying to make a point here...lol).

Is it just me or are things really screwed up at this point.

IMO, if the US Gov't wants to collect tax revenues on Online Poker play (specifically the small minority of players who are significant money winners) then why don't they
acknowledge its legitimacy and its legality. Until they do that, how can they collect taxes on it?

Did they tax alcohol during prohibition? No. Who would be nuts enough
to come forth and say they were making moonshine in their bathtub in their basements - nobody would!

(I'm NOT saying that this is a defense for NOT paying your taxes, I'm just trying to illustrate a point...)

...I bet you that there are a lot of poker players in fear of reporting their income b/c
of the Gov't's stance on Online poker.

If I ever become a big money winner w/ Online poker, I am simply moving to Canada or the UK or somewhere else...

Hope I'm not alone in thinking this.

Joe M.
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