Congressman from Washington, Jim McDermott has filed a bill that would tax Internet gambling to fund foster care programs. The new proposal establishes a tax rate of 25 percent on revenues from the regulation of online casinos, the profits will go to social programs and housing for orphans.
The bill is a clear and detailed version of a measure introduced last year by McDermott that suggested a tax rate for casino online gambling. McDermott has also added a provision to the proposal that gives states and Indian tribes 6 percent of the tax collected from online casino gambling. McDermott says a large part of the proposal is to to ensure that Member States and social programs such as that for foster children are not too heavily reduced by budget cuts. “The major reason is to make it possible for states to have access to online gambling revenue,” said McDermott.
The office of McDermott’s has released figures on the proposal that shows that the bill can generate $30 billion of revenue for the Treasury in the next ten years, and $42 billion for foster care subsidies. The bill is intended as a supplement to the Barney Frank proposal to regulate Internet casino gambling. Frank’s proposal is in the House Financial Services Committee, pending for approval, and has gained 66 co-sponsors. McDermott says he will see if he can present his proposal to the committee after Frank finished his gambling legislation.