Tax hike in the ‘Big Beautiful Bill’ was a ‘bad decision,’ says House Representative Jason Smith
House Representative and Chair of the Ways and Means Committee, Jason Smith, has suggested the tax hike in Trump's domestic policy reform bill could be overturned before the end of the year.
Key points:
– Jason Smith, Chair of the House Ways and Means Committee, calls gambling tax hike a ‘bad decision’
– Suggests it could be overturned before the end of the year
– The reversal could be part of a bi-partisan package
US Representative for Missouri Jason Smith has claimed that the tax hike on gambling losses could be undone by the end of the year.
A controversial amendment to President Trump’s ‘Big Beautiful Bill’ has threatened to undermine professional gamblers by making them pay 10% tax on phantom winnings.
According to Smith, a Republican, the change to the previous tax framework, where gamblers’ losses were previously 100% tax-deductible, was a “bad decision.”
In an interview, he stated that it would be “absolutely” possible for the amendment to be reversed before 2026 and that the change, advocated for by many Democrats, could be part of a broader bi-partisan deal.
Jason Smith is the Chair of the Ways and Means Committee, which has jurisdiction over taxation, tariffs and revenue raising procedures – all areas that the ‘Big Beautiful Bill’ sought to reshape.
Good to know: Prior to the passing of Trump’s bill, Jason Smith was quoted saying: “Failure is not an option, we will not fail at this, we will put it on the President’s desk”
Ahead of a meeting of the Ways and Means Committee, the American Gaming Association (AGA) sent a letter calling on it to return gambling losses to being 100% tax deductible and expressing support for the My Fair Bet Act, which would do just that.
This support for reversing the amendment from a Republican in a relevant and high-ranking position will be a boost to those in the Senate and House who have already expressed opposition to the tax hike and supported My Fair Bet.
In July, an official move to reverse the amendment was blocked by Republicans, with the suggestion that although many voting for the initial bill didn’t actually know about the gambling taxation change at the time, it would not be overturned without some Democratic concessions in return.
General reception to Trump’s 900-page domestic policy bill has been mixed, with growing dissent in some quarters, and this backing could suggest increasing willingness to accept an overturning of at least this element without too much obstruction.
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