Industry warns new deduction rule could harm professionals, push players toward unregulated markets

Professional Gamblers Push Back on “Phantom Tax” Provision

A little-known change in President Donald Trump’s sweeping tax and spending bill is drawing sharp criticism from professional gamblers, casino operators, and lawmakers. The measure, which lowers the amount of gambling losses that can be deducted from winnings, could lead to gamblers owing taxes on income they never actually earned—sparking what critics call a tax on “phantom” profits.

Previously, gamblers could deduct up to 100% of their losses against their winnings. Under the new law, that deduction is capped at 90%. That means someone who wins and loses the same amount in a year—say, $100,000—would still be taxed on $10,000 of income, despite not coming out ahead.

“It’s just really not good policy to have you paying taxes on phantom money that you didn’t earn,” said Rep. Dina Titus (D-NV), who represents Las Vegas and has introduced a bill to repeal the change.

A Quiet Addition With Big Consequences

The tax revision was added late in the legislative process by the Senate Finance Committee as part of the broader reconciliation strategy to ensure the bill passed under Senate rules. According to congressional sources, the gambling provision wasn’t driven by policy goals but rather by a need to demonstrate a budget impact—the Joint Committee on Taxation estimates it will generate $1.1 billion over the next decade.

Gambling losses have been deductible up to winnings for more than 50 years. That treatment was reaffirmed in Trump’s 2017 tax overhaul and preserved in the House version of this latest bill. But the Senate adjusted it to meet reconciliation guidelines.

“This wasn’t about gambling,” said an industry official. “It was about making the math work.”

Senators and Industry Voice Opposition

Even some Republicans say they were unaware of the change’s implications. Sen. Thom Tillis (R-NC) called it “bad policy” and said it would have been another reason to oppose the bill, which he voted against due to Medicaid concerns.

Sen. Catherine Cortez Masto (D-NV) is preparing a fix in the Senate, aiming to reverse the rule through unanimous consent later this week.

A spokesperson for the Senate Finance Committee declined to comment on the provision’s origin.

Impact Could Be Limited—But Devastating for Some

While casual gamblers may not feel the sting—since most don’t itemize gambling losses—the effect on professionals could be severe. Players who operate on narrow margins, especially in poker or sports betting, say the change threatens their livelihoods.

“In poker, the players barely scraping by won’t make it anymore,” said pro player Phil Galfond. “It just doesn’t feel right you can have a losing year and then pay tax on that losing year.”

Russell Fox, a tax advisor specializing in gaming, echoed those concerns: “High-volume, low-margin gambling is going to become untenable.”

Even recreational gamblers who hit a jackpot—on slots or in the lottery—could be affected, since winnings are taxed while deductions are now limited.

Industry Calls for Repeal to Protect Legal Gambling

The gaming industry is actively lobbying Congress to undo the change. The American Gaming Association (AGA) has sent multiple letters to key lawmakers calling for the restoration of the 100% deduction. DraftKings, one of the largest U.S. sports betting platforms, also voiced support for legislative efforts to reverse the rule.

While the AGA applauded the broader bill for lowering corporate taxes, it emphasized that the new gambling deduction rule undermines the industry’s financial fairness and could drive gamblers to unregulated offshore markets.

“It hurts the industry because people will go elsewhere,” Titus warned.

A Fix May Still Be on the Table

With bipartisan concern mounting and lawmakers working on amendments, there is still a chance the provision could be reversed before it takes effect next year. For now, the gaming world is watching closely—and calling on Congress to act before professional and regulated gambling takes a hit from what critics say is an unintended consequence of a hastily negotiated deal.

Source: CNN – Why an obscure provision in Trump’s big agenda bill has gamblers crying foul

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WASHINGTON (AP) — In a major legislative win for Republicans, Congress has passed a sweeping tax and spending bill backed by former President Donald Trump. The nearly 900-page bill, which includes trillions in tax cuts and major shifts in federal spending, now heads to Trump’s desk—just in time to meet the GOP’s July 4th deadline.

Despite unified Democratic opposition, the final version passed the House in a tight 218-214 vote, after the Senate approved it with Vice President JD Vance casting the tie-breaking vote.

Here’s a breakdown of what’s in the bill—and when its key provisions will take effect.

Big Tax Cuts for Businesses, Families, and Seniors

At the heart of the legislation are roughly $4.5 trillion in tax cuts. Republicans say these measures are necessary to prevent a looming tax hike when Trump-era tax breaks expire at the end of the year.

Key Tax Provisions:

• Makes Trump’s first-term tax rates permanent

• New deductions for tips, overtime, and auto loans

• $6,000 deduction for seniors earning under $75,000/year—part of Trump’s pledge to eliminate taxes on Social Security benefits

• Child tax credit increase from $2,000 to $2,200 (but many lower-income families won’t receive the full amount)

• State and local tax (SALT) deduction cap increases to $40,000 for five years

Businesses also benefit from expanded deductions:

• Immediate 100% write-offs for equipment and research investments

• Additional breaks for capital-intensive industries

However, the Congressional Budget Office (CBO) says the bill will save the wealthiest households about $12,000 a year, while it could cost low-income Americans $1,600 annually, largely due to cuts in Medicaid and food assistance.

Major Funding for Border Security and Defense

Trump’s bill funnels $350 billion into national security, with a sharp focus on immigration enforcement and military expansion.

Immigration & Border Security:

• Funding for 100,000 detention beds

• Hiring 10,000 new ICE agents with $10,000 signing bonuses

• Increased Border Patrol presence

• New fees for immigrants applying for asylum

Military Spending:

• Billions for shipbuilding and munitions

• $25 billion for the “Golden Dome” missile defense system

• $1 billion earmarked for border security operations by the Pentagon

Deep Cuts to Medicaid and Food Assistance Programs

To offset the tax cuts and spending hikes, Republicans are slashing public assistance programs. The bill tightens eligibility and imposes new work requirements.

Medicaid and SNAP Changes:

• 80-hour-per-month work requirement for many adults—including those up to age 65

• Parents with children over 14 must also meet work rules

• $35 copay for some Medicaid services

• States with high SNAP error rates will begin covering part of the cost starting in 2028

The CBO estimates that by 2034:

• 11.8 million more Americans could lose health coverage

• 3 million more people would no longer qualify for SNAP

Climate Programs Slashed, Fossil Fuels Boosted

In a sharp reversal of Biden-era climate policy, the bill guts renewable energy incentives.

What’s Being Cut:

• Clean energy tax credits for wind and solar rolled back

• Electric vehicle tax credits end September 30, 2025 (instead of 2032)

Meanwhile, tax credits will now cover metallurgical coal, essential for steel production—further supporting fossil fuel industries.

Democratic Sen. Ron Wyden called the move a “death sentence” for clean energy.

New “Trump Accounts,” Remittance Tax, and Culture War Add-ons

The bill includes several GOP wish-list items—many unrelated to tax or fiscal policy:

Notable Provisions:

• Trump Accounts: $1,000 savings deposits for children

• $40 million for Trump’s “National Garden of American Heroes”

• 1% tax on international money transfers

• Elimination of $200 tax on silencers and short-barreled firearms

• Temporary ban on Medicaid funds going to abortion providers like Planned Parenthood

• Expansion of compensation for nuclear exposure victims

Surprise Inclusions: Moon Missions, AI Moratoriums, and Rural Hospital Aid

Several last-minute additions and removals shaped the final bill:

• $50 billion over five years for rural hospitals (up from $25 billion)

• $88 million for pandemic response oversight

• Billions for NASA’s Artemis moon mission and Mars exploration

• A controversial moratorium on state AI regulations was removed after pushback from GOP governors

• New wind/solar taxes tied to Chinese components were stripped out

The Price Tag: $3.3 Trillion Deficit—Or Not?

According to the CBO, the bill would add nearly $3.3 trillion to the federal deficit over the next decade. But Senate Republicans argue that extending existing tax cuts shouldn’t count as new costs.

Using that logic, they claim the bill would actually cut the deficit by $500 billion—a view Democrats and fiscal watchdogs strongly dispute.

The Committee for a Responsible Federal Budget blasted the GOP math as an “accounting gimmick that would make Enron executives blush.”

Final Thoughts

While the bill checks off many long-standing Republican goals—tax cuts, defense spending, immigration crackdowns—it also stokes deep political divisions over the future of federal safety nets, climate policy, and fiscal responsibility.

The true impact of the legislation will unfold in the coming months—but one thing’s clear: this isn’t just a budget bill. It’s a bold statement of the GOP’s agenda heading into 2025.

Source: AP News – What’s in Trump’s big bill that passed Congress and will soon become law

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WASHINGTON — Just six months into his new role as Senate Majority Leader, Sen. John Thune is facing a defining moment — and the pressure is on.

Thune’s first big challenge? Navigating President Donald Trump’s sweeping tax and spending bill through a sharply divided GOP Senate, all while racing against a July 4 deadline set by Trump himself.

The stakes are sky-high: Thune can only afford to lose four Republican votes to pass the bill, and several GOP senators have already raised serious concerns. Meanwhile, Democrats are united in opposition.

“This is when John’s leadership is going to be desperately needed,” said Sen. Thom Tillis (R-NC), one of the skeptics of the bill’s fast phaseout of certain energy tax credits.

A Tightrope Walk for Thune and the GOP

To get the legislation across the finish line, Thune must strike a delicate balance. He needs to keep his conference unified without alienating House Republicans, who barely passed the bill by a single vote last month after intense internal wrangling.

It’s a complex and risky endeavor — one that could define Thune’s first year as leader and cement his working relationship with Trump.

Despite their rocky history, Thune has stayed in close touch with the White House, making multiple visits to discuss the bill with the former president.

“Individual pieces of it people don’t like,” Thune acknowledged this week. “But in the end, we have to succeed.”

A New Style of Senate Leadership

Thune’s leadership marks a stark contrast to his predecessor, Sen. Mitch McConnell, known for his tightly controlled inner circle and often icy relationships with colleagues.

Thune has taken a more open-door approach, hosting small group and one-on-one meetings with senators to hear their concerns.

“It’s very much a change,” said Sen. Kevin Cramer (R-ND). “He’s already made a lot of people happier just by listening.”

Even Florida Sen. Rick Scott — a former rival who ran against Thune for the leadership post and remains critical of the bill’s lack of deeper spending cuts — has praised Thune’s willingness to listen.

“I’d be very surprised if anybody doesn’t believe he’s receptive to their ideas,” Scott said. “And when people feel heard, there’s a greater chance they’ll go along with something.”

Mending Fences with Trump

Thune and Trump have had a complicated relationship. Thune was one of the few Republicans who criticized Trump’s attempts to overturn the 2020 election. Trump didn’t endorse Thune’s reelection bid in 2022, and Thune initially backed Sen. Tim Scott in the 2024 primary.

But the two have since reconciled, finding common ground as Thune works to shepherd Trump’s legislative priorities through the Senate.

Running a Tighter Ship in the Senate

While Thune has earned goodwill for his collaborative style, he’s also shown he’s not afraid to crack the whip.

He’s shortened Senate vote times from hours to just 15 minutes — a move that surprised some lawmakers and caused a few to miss key votes at first. But the message was clear: punctuality matters.

“Did he get yelled at a little bit? Yeah,” said Sen. Mike Rounds (R-SD). “But once they got cut off once or twice, they realized — if you want to vote, make it on time.”

Can Thune Deliver?

With less than a month to meet Trump’s July 4 deadline, Thune’s ability to bridge ideological divides and keep his party together will be tested like never before.

The outcome of the tax bill won’t just determine the fate of a major piece of Trump’s economic agenda — it may also define John Thune’s legacy as a Senate leader.

“Everybody wants to work with John,” said Rounds. “He’s not making anybody mad right now.”

For now, Thune has the goodwill of his colleagues and the confidence of the president. Whether that’s enough to pull off a political balancing act of this scale remains to be seen.

Source: AP News – Thune’s first big test as Senate leader has arrived with Trump’s tax bill

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House Republicans have pushed through a massive tax and spending bill, championed by former President Donald Trump, after an intense all-night session and last-minute revisions. Nicknamed the “one big, beautiful bill,” this sweeping package promises deep tax cuts—mostly benefiting the wealthy—while slashing aid programs like Medicaid and food stamps, which millions of lower-income Americans rely on.

The Big Picture: Who Gains, Who Loses

At the heart of the bill is a controversial trade-off. Wealthier Americans will enjoy the lion’s share of tax relief, while low-income families face reduced support through major cuts to social safety nets.

• Top 20% of earners would receive 60% of the total tax cut, with the top 5%—those making over $460,000—getting more than a third of it.
• Middle-income households would see modest tax savings, averaging about $1,840.
• Lower-income Americans would see the smallest benefit: an average tax cut of just $160.

But those modest tax breaks may be wiped out by deeper spending cuts. The bill slashes nearly $1 trillion from federal aid programs over the next decade, with Medicaid losing about $700 billion and food assistance (SNAP) facing a $267 billion cut.

Deficit-Fueled Cuts and Expiring Promises

Despite the cuts, the bill is projected to add $3.1 trillion to the national debt over 10 years. That’s because it leans more heavily on tax reductions than spending restraint.

Many of the bill’s promises—including eliminating taxes on tips and increasing standard deductions for seniors—are set to expire after 2028. Critics say these temporary measures are designed to hide the true cost of the bill.

If Congress later makes all of these tax breaks permanent, it could balloon the deficit by an additional $5.1 trillion.

Who Feels It the Most?

Low-income Americans are expected to bear the brunt of the trade-offs:

• Those earning up to $17,000 annually could see their income drop by 14.6%, or about $820 next year, when both tax changes and benefit cuts are factored in.
• People earning between $17,000 and $51,000 would lose about $430 in annual income.
• In contrast, those earning over $174,000 would gain over $12,000, or a 2.6% boost in income.

“These cuts will hit not just adults, but also children, seniors, and people with disabilities,” said Kent Smetters, director of the Penn Wharton Budget Model. “For many, the loss of benefits far outweighs the modest tax relief.”

The Political Road Ahead

The bill now heads to the Senate, where it faces a tougher path. Though Republicans can bypass a Democratic filibuster using budget reconciliation, they can only afford to lose three votes.

• Some GOP senators want deeper cuts.
• Others are uneasy about Medicaid restrictions.
• One senator is pushing for a bigger child tax credit.

Plus, Senate rules may force the removal of any provisions unrelated to the federal budget.

If the Senate makes changes, the revised bill will return to the House for another vote. Trump and House Speaker Mike Johnson have proved effective in corralling support, but all eyes are now on new Senate Majority Leader John Thune to navigate the next phase.

A Debt Solution? Not Likely

Despite growing concerns over the $37 trillion national debt, lawmakers are still avoiding the hard conversations about long-term entitlement reform. The real drivers of federal spending—Medicare, Medicaid, and Social Security—remain largely untouched.

While this bill does trim Medicaid, it does so in tandem with generous tax breaks, resulting in more debt, not less. Meaningful changes to entitlement programs are considered politically dangerous, and both parties continue to sidestep the issue.

Bottom Line: Trump’s megabill may offer short-term relief for some taxpayers, but it does so at a high cost—both in terms of national debt and support for America’s most vulnerable. As the Senate takes up the legislation, the stakes couldn’t be higher for millions of Americans.

Source: CNN – How Trump’s megabill transfers wealth in the US

The post Who Wins and Loses in Trump’s New Tax and Spending Plan appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

WASHINGTON — In a dramatic blow to House Republicans, a major tax-and-spending bill backed by former President Donald Trump was blocked Friday in the House Budget Committee, as five GOP lawmakers joined Democrats in voting it down.

The 1,116-page proposal—dubbed the One Big Beautiful Bill Act in tribute to Trump—was pitched as a sweeping effort to deliver tax breaks and spending cuts. But it now faces an uncertain path after a 16–21 vote derailed its momentum just days before a planned floor vote.

Conservative Rebellion Over Spending Cuts

The holdout Republicans—mostly hardline conservatives from the House Freedom Caucus—are demanding deeper cuts to Medicaid and the rollback of Biden-era green energy tax credits. They argue that without these changes, the bill would only worsen the country’s $36 trillion debt.

“This bill needs serious changes or you’re not getting my support,” said Rep. Chip Roy (R-Texas), one of the conservative dissenters.

Other GOP lawmakers who voted against the bill included Reps. Ralph Norman (S.C.), Josh Brecheen (Okla.), Andrew Clyde (Ga.), and Lloyd Smucker (Pa.). Smucker changed his vote procedurally to allow a future revote, expressing optimism the bill could still be salvaged.

Despite Trump’s strong push—“Republicans MUST UNITE behind ‘THE ONE, BIG BEAUTIFUL BILL!’” he posted on social media—the conservative resistance is holding firm.

SALT-Side Push from High-Tax States

Adding to the chaos, moderate Republicans from high-tax states like New York are insisting on a much bigger deduction for state and local taxes (SALT) than the bill currently allows. The proposal would triple the existing SALT cap from $10,000 to $30,000 for joint filers earning up to $400,000, but lawmakers like Rep. Nick LaLota are pushing for deductions of up to $124,000 for joint filers.

This internal GOP conflict—between conservatives demanding cuts and moderates seeking tax relief—has left House Speaker Mike Johnson scrambling to unite his party before Memorial Day.

What’s Inside the ‘Beautiful’ Bill

At its core, the bill would extend and expand on Trump’s 2017 tax cuts, with new features he campaigned on in 2024, such as:

• No taxes on tips, overtime pay, and certain auto loans
• A larger standard deduction of $32,000 for joint filers
• A temporary boost to the child tax credit from $2,000 to $2,500
• $350 billion in funding for immigration enforcement and Pentagon support

To pay for the plan—which would cost over $5 trillion—the bill proposes:

• Rolling back Biden’s green energy tax credits
• Slashing over $1 trillion from Medicaid and food assistance programs
• Imposing new work requirements: 80 hours/month for certain Medicaid recipients and expanded age criteria for SNAP (food stamp) work rules, affecting people ages 55 to 64

Impact on Americans and the Federal Budget

Democrats warn the cuts would devastate millions of low-income Americans.

“Millions will lose health care and food assistance while the wealthy enjoy massive tax breaks,” said Rep. Brendan Boyle (D-Pa.), the top Democrat on the panel. “That is bad economics. It is unconscionable.”

According to the nonpartisan Congressional Budget Office, the bill would result in:

• 7.6 million fewer people with health insurance
• 3 million fewer monthly recipients of SNAP

While Republicans claim the bill will pay for itself through economic growth, many outside analysts say it would significantly add to the national debt.

What’s Next

The Budget Committee is set to reconvene on Sunday, and GOP leaders are pushing for a vote on the House floor next week. But unless Republicans can bridge the gap between their warring factions, the fate of Trump’s prized tax bill remains in serious doubt.

Source: AP News – Conservatives block Trump’s big tax breaks bill in a stunning setback

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