Assemblyman Adam Gray of California is ready to see changes to the gambling industry of the state including ending a gambling tax deduction. A bill is currently being sponsored by the Assemblyman that would see the $300 million loophole redirected to benefit the health and drinking water of the residents in the state. Currently, wealthy customers are able to gain access to a tax deduction from gambling at the Indian casinos of the state. The bill would end this special deduction.
With the tax loophole, gamblers are able to deduct losing wagers from their income taxes in the state. The proposal by Gray would no longer allow the deduction on state income taxes but allow gamblers to file for the federal deduction.
Gray wants to use the funds to build a new teaching hospital at UC Merced for the University of California. Money would also be allocated to provide for the UC Riverside School of Medicine. Clean water would be guaranteed for a minimum of one million residents who currently cannot safely drink from their taps.
The tribal governments are not happy with the proposal. The Tribal Alliance of Sovereign Indiana Nations of California provided a statement which revealed that the measure will have consequences on tribal governments as they have not had the opportunity to analyze the plan.
With the proposal, Gray is suggesting that over $100 million would be provided for public education in new funding. At least $115 million would be provided annually for drinking water improvements in the state as well.
It has been estimated that the bill would generate as much as $490 million during the 2019-2020 fiscal year. By 2020-2021, the amount would be in the $320 million range.
The bill would certainly be a way to generate funds and help with education as well as the drinking water issue in the state. However, it is unclear as to if Gray will have enough support to see his measure move forward.
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