Well, if you’ve been reading Gambling Review for a while then you have likely read countless articles on the Unlawful Internet Gambling Enforcement Act (UIGEA) and Barney Frank’s attempt to repeal it with his proposed bill, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. Now there is a new attempt to legalize and regulate online gambling and it comes in the form of a bill that sets out to simplify the U.S. tax code.

Any American readers don’t need to be reminded of the ridiculous nature of the tax code, which is thicker than a phone book and more confusing than a T.S. Eliot poem. The code, of course, is deliberately that difficult for people to comprehend, because being that complex guarantees that mistakes will be made and if they are, those in power can use those mistakes as a weapon against those who oppose them. Ever wonder why people who accused President Clinton of misconduct found themselves getting audited by the IRS? Nixon did the same. By making the tax code complex, those in power can use it to punish their enemies and help their friends by giving them a break. That’s why tax cheats like Timothy Geithner are in President Obama’s cabinet rather than in jail.

Given how absurd the tax code is, rewriting it is a good idea. Ron Wyden, a Democratic Senator from Oregon, and Judd Gregg, a Republican Senator from New Hampshire, have proposed to do exactly that, by introducing the Tax Fairness and Simplification Act of 2010.

I haven’t read or even seen the bill yet, so I can’t tell you what’s in it. I can only tell you what those two Senators say the bill will do. According to them, it will eliminate many “specialized tax breaks” and “create policies that benefit everyone.” That wording scares me, but let’s continue. They also say the bill will include “fiscally-responsible middle-class tax cuts, business tax breaks to help American companies compete globally and create jobs, and a fairer and simpler tax system for all Americans.”

Okay, all of that sounds good except that I cringe when I hear a politician talk about taxes being fair. They normally do so when calling for a progressive tax system that unfairly places an extra burden on the upper class citizens who are the ones starting companies and creating jobs. Also, America already has a progressive tax system, with most of the tax burden being shouldered by the wealthy.

The one aspect of the bill that is of the most concern to online gamblers, though, is the fact that it calls for the regulation of online gambling, with all operators paying a 2% licensing fee to the government on all deposits. Many of the provisions in the gambling section of the bill are like those in Frank’s bill. The bill calls for “strict federal licensing and regulatory framework” to ensure that the games are safe and fair. A Joint Committee on Taxation analysis determined that the regulation of online gambling called for in the bill would generate almost $42 billion over the next 10 years.

Now that the bill has been proposed, its next step is to be debated in a Senate committee. Even though it would clearly legalize and regulate online gambling, I’m not sure if this bill is a good idea. It calls for some tax cuts but lets some of Bush’s tax cuts expire. It also changes the tax brackets and does other things that could be detrimental to the economy. It’s simply too early to tell, without having read the bill, whether it’s a good thing or bad. Rest assured, Gambling Review will follow this bill closely.

One minute it’s there and the next it’s all gone. Isn’t that just like gambling? Yesterday we talked about Senator Ron Wyden’s proposed bill to legalize and regulate online gambling for the purposes of subsidizing health care costs. That bill has been pulled and the senator has moved on to greener pastures, looking for other ways to pay other people’s bills with other people’s money.

The reason seems to be that healthcare reform is controversial enough as it is and bringing online gambling to the table too is apparently tantamount to proposing abortion or euthanasia to help fund healthcare. And because current healthcare reform seems more about getting something passed than getting something passed that works, the last thing anybody wants to do is raise eyebrows.

“The last thing Senator Wyden wants to do is make it more difficult to expand subsidies for working families by introducing a new contentious issue to the debate,” said Jennifer Hoelzer, Wyden’s communications director. “So when he offers the amendment, he will do it with other funding mechanisms.”

“Changing the laws regarding online gaming is a significant detour from healthcare, a detour that Senator Reid agrees is not appropriate at this time,” said Regan LaChapelle, spokesman for Harry Reid.

Though Senator Wyden’s feet were cold enough to pull the bill, that didn’t stop others from voicing their support.

“Money’s money. If that’s the price we pay, that’s the price,” said Rep. Jim McDermott (D-Wash.). “I would consider adding it.”

Barney Frank, who has been the poster child for legalized online gambling for quite some time now also agrees that the bill was a good idea. “It’s a great idea,” Frank said. “Why should we leave all that money untaxed?”

While I continue to hope that someday online gambling will be legalized in the US, I find it disturbing that the only reason the government will legalize it is for financial gain. Playing a game and doing as they wish with their own money (as long as it doesn’t harm anyone else) is or should be every American’s right. It’s a shame that those rights are now considered on their financial merits and not on the wishes and hopes of the country’s citizens. Just my two cents.