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Kyle Pomerleau highlights a new paper co-authored with Alex Durante reviewing the economics of gambling. The work analyzes how the U.S. income tax diverges significantly from an ideal approach to taxing gambling activity, and discusses possible reforms lawmakers could consider for the treatment of gambling under the income tax code.
The analysis provides an overview of current tax policies affecting gambling and suggests potential improvements for more effective regulation.
Pomerleau has previously analyzed how most homeowners are protected from major taxable gains through the capital gains exclusion on property sales. He has also detailed scenarios in which individuals earning between $200,000 and $500,000 are positioned to benefit most from certain tax policies, according to his prior reporting. The new paper adds gambling tax treatment to his ongoing assessments of fiscal policy impacts.