[taxabletalk] Russ: Welcome to the Hotel California

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Posted by Russ:
Welcome to the Hotel California
http://www.taxabletalk.com/posts/1249438867.shtml


   The Eagles song Hotel California remains a classic rock hit. During my
   recent vacation I walked through a [1]Hotel
   California--the California Hotel and Casino in downtown Las Vegas.
   The California has a Hawaiian theme, and the hotel is popular with
   tourists from the island state. But that might not last; Governor
   Lingle signed [2]legislation making gambling losses not deductible on
   Hawaiians' state tax returns.
   The Hawaii Department of Revenue estimated the tax (I'll call it by
   its real name rather than an elimination of an itemized deduction)
   could bring in $300,000 to the Aloha State. It won't. As I've said
   before, taxes never bring in what they're projected to because
   individuals modify their behavior to avoid the tax. There will be a
   lot fewer Hawaii tax returns filed that show gambling winnings for
   2009.
   And yes, the law is retroactive to January 1st. State Representative
   Pono Chong sponsored the legislation; [3]he told the Honolulu
   Advertiser that the tax is "...a way to bring in additional revenue at
   a time when the state is 'undergoing a significant and possibly
   protracted economic downturn in tandem with the national and global
   economic and financial crises.'" I guess the idea of cutting state
   spending is anathema to Hawaiian legislators.
   For the California Hotel they may have to change their theme or
   attract a different customer base. Otherwise the lyrics that the
   Eagles wrote may become true:

     Welcome to the Hotel California
     Such a lovely place
     Such a lovely face
     Plenty of room at the hotel California
     Any time of year, you can find it here

References

   1. http://www.thecal.com/
   2. http://www.taxabletalk.com/posts/1244472365.shtml
   3. http://www.honoluluadvertiser.com/article/20090729/NEWS01/907290363/Hawaii+residents+now+taxed+on+Vegas+winnings+even+if+they+lose