President Donald Trump is once again doing what Democrats seem allergic to: looking for ways to let Americans keep more of their own money. This time, it’s the federal tax on gambling winnings — a relic of big-government greed that hits everyone from Vegas regulars to grandma scratching her lottery tickets.
Speaking to reporters aboard Air Force One on Tuesday, Trump was asked if he’d support scrapping the tax altogether. His response? Classic Trump.
“We have no tax on tips, we have no tax on Social Security, and we have no tax on overtime,” he said. “No tax on gambling winnings, I don't know. I'm gonna have to think about that.”
Translation: He’s open to it — and if history is any guide, when Trump “thinks about” something, it usually turns into a policy Democrats pretend to hate but secretly wish they’d come up with first.
This idea fits neatly into Trump’s broader push to overhaul the federal income tax system. He’s openly floated dramatically shrinking it — even eliminating it — arguing that tariffs and investment would bring in massive revenue. Naturally, this sent the professional hand-wringers in the media and academia into panic mode. Budget analysts claim it would be “difficult” without spending cuts or new revenue, which is ironic coming from the same people who never met a trillion-dollar spending bill they didn’t like.
Of course, any change to gambling tax law would require Congress to act — and with Democrats always hunting for new ways to squeeze citizens for every last dime, the path forward may depend on how much they enjoy saying “no” to Americans winning money.
Under current IRS rules, gambling winnings — whether from casinos, lotteries, raffles, horse racing, or that lucky spin on the slot machine — must be reported as taxable income. Even non-cash prizes, like cars or trips, get slapped with a tax bill. Because nothing says “congratulations” like an immediate invoice from the federal government.
The White House didn’t roll out a legislative plan or revenue estimate yet — but the mere suggestion is already sending shockwaves through the policy world. Meanwhile, Trump’s supporters see something more straightforward: a President who keeps looking for ways to make life easier for working Americans, not harder.
Stay tuned — because if Trump decides to make tax-free gambling winnings the next big move, Washington is about to have a very uncomfortable conversation about why the government feels entitled to your luck.
