Evening star., 1951-09-06
U.s., LeNonG Gambling
Could Raise S2BiIIion,
Senator George Says
BY the Assoeiaisd Press

chairman George Of the Senate
Finance Committee said today the
new gambling tax approved by his
group could raise as much As
81 billion a year.
Senator George and other COM
mittee members are highly du-
bious as to how much money the
levy actually will yield, however,
since it deals with an activity
which is Illegal in most States.
The House. which first came up
with the tax in its $7.2 billion
revenue boosting bill, estimated
the levy on commercialized gam
bling would yield $4O0 million an
nually.
The levy may face trouble when
the tax bill comes up for debate
next week. Senator Kefauver,
Democrat, Of Tennessee told re-
porter today he will confer with
his former crime committee col
leagues on whether to attack the
gambling tax.
Fears Color Of Legality.
Senator Kerauver, former chair
man of the crime committee, ar
gued before the finance group two
weeks ago that tax on gambling
would give some color of legality
to enterprises the Government
ought to be trying to shut down.
Besides approving the gambling
tax. the Finance Committee yes
terday approved House provisions
which will lose about 1924 million
In revenue annually as compared
with the present law.
With these decisions, the Sem
ate version of the tax boost stood
at $50 billion. very close to the
Sc billion increase favored by
Senator George.
The committee meets again.
today to work on the few remain
ing MINOR items in the House bill.
The gambling tax would include
10 percent excise on all bets
Oh sporting events, elections or
other contests made with book
makers or other persons accepting
wagerS for a profit.
1t also would apply to bets with
lottery operators and to wagers
placed in a pool on any sports
event or contest if the pool is
conducted for profit. A $50-a-
year occupational tax would bel
imposed on persons accepting bets
and on persons who receive bets
fol bookmakerS.
The lawmakers expect most of
the revenue would come from off,
track horse race and numbers
betting.
Specifically excluded are friend
ly bets between persons who are
not commercial gamblers, card
games such as poker, dice games,
roulette wheels and bingo games.
Senator Georges estimate of $2I
billion potential revenue was made
in an interview. 1t is supported by
a report of the Crime Committee
which said $40 billion changes
hands every year in the United
States as a result of organized
gambling. ls..
Senator George said there is mol
question that large. sums are bet,
The problem, he said, will be to
collect the tax. Treasury represen-
tatiyeS have told the Senators they
felt the tax would present many
administrative difficulties.
2 Major Provisions.
The two major House revenue
losing provisions approved yester-
day would:
Exempt from the capital gains
tax profit made on sale of a resi-
dence if the homeowner put the
profit into another house within 12f
months. Estimated annual loss
SIP million.)
Extend the percentage depletion
principle to many new items such
as sand. gravel, marble. granite,
stone, clay, shale, slate and borax,
and double the present 5 per cent
depletion allowance on coal. Es-
timated annual loss-$67 million) !
The first is designed to give al
break to a homeowner who must
sell his present residence and buy
another. The Senators added al
section providing that the profit
could be held 18 months if it is to
be used as part of the price of a
new house which the homeowner
is building. ~