TAX GAMBLING NOT SAVINGS
2
IT seems crazy that we encourage gambling with a relatively low tax rate of just 1%. Yet we tax savings at 39% and investments at 41%. Another anomaly is that Dirt on savings used to be linked to tax on investments so as not to discourage investing, which is good for the economy.
Dirt was reduced last year to 39% and there is a commitment to cut it further.
But the exit tax levied when we cash in our investments wasn’t reduced in parallel.
It should be this time around as DIRT is reduced further, while gamblers should not get off as lightly as they do.