McDermott's New Internet Gambling Tax Bill Would Fund Foster Care
Congressman Jim McDermott of Washington introduced a bill today that would use Internet gambling taxation to fund foster care programs. The new proposal suggests using 25 percent of revenue from the regulation of online casinos to pay for social programs and housing involving foster kids.
The bill is a more clearly delineated version of a measure proposed by McDermott last year, which also proposed taxation rates for online gambling. McDermott also includes a stipulation that states and Native American tribes receive 6 percent of the revenue collected from Internet gaming.
McDermott told The Hill that ensuring states and social programs like those for foster children aren't hurt too badly by budget cuts is a big part of his thought in revising the bill.
“The major reason is to make it possible for states to have access to online gambling revenue,” said McDermott.
McDermott's office released figures showing the bill could generate $30 billion over the next decade for state coffers, as well as $42 billion for foster care subsidies.
The bill is intended as a companion to Representative Barney Frank's proposal to regulate Internet gambling. Frank's bill is in the author's committee, the House Financial Services Committee, awaiting markup, and has acquired 66 co-sponsors.
McDermott says he will look to bring his bill before the House Ways and Means Committee when Frank's bill finishes markup.
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