McDermott's New Internet Gambling Tax Bill Would Fund Foster Care

Representative Jim McDermott has authored a brand new bill suggesting using online gambling taxes to fund foster care programs, in addition to state and tribal budgets.

Congressman Jim McDermott of Washington introduced a bill today that will use Internet gambling taxation to fund foster care programs. The brand 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 features a stipulation that states and local 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 huge a part of his thought in revising the bill.

“The major reason is to make sure that states to have access to online gambling revenue,” said McDermott.

McDermott's office released figures showing the bill could generate $30 billion over the following decade for state coffers, in addition to $42 billion for foster care subsidies.

The bill is meant as a companion to Representative Barney Frank's proposal to control Internet gambling. Frank's bill is within the author's committee, the home Financial Services Committee, awaiting markup, and has acquired 66 co-sponsors.

McDermott says he'll look to bring his bill before the home Ways and Means Committee when Frank's bill finishes markup.

Published on March 25, 2010 by TomWeston

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