Monday, April 19, 2010

Blackjack And Taxes

I love to play blackjack.  Love it, love it, love it. 

The odds are good, relatively speaking.  The house has a relatively small advantage, which I can usually overcome.  I do this by having God on my side, and doubling down after losses. 

My employers at Jukt Micronics love, love, love to go way out on a limb, putting everything at risk, to try to make money by selling goods and services to grocery stores.  They often place "bets" that make my blackjack strategy look rational. 

I will not ever, ever, ever play blackjack in Oklahoma.  Oklahoma casinos have a weird little rule mandating that players put an additional chip in a special "dealer" circle prior to every hand.  There is no way for the player to come out ahead when playing blackjack in Oklahoma.  Not using my strategy, anyway.  I'll bet $5.00 to try to win $10.00, but I won't bet $6.00.   Therefore, I avoid playing blackjack in Oklahoma. 
After all, there are only two things that can happen when using my strategy:  I can loose everything, or I can double my money.  I'm not going to put my money at risk for the possibility of a less-than optimal payout. 

The Jukt Micronics President and CEO have choices also.  They can continue to take risks, putting their money where their ideas are and creating meaningful jobs and excellent products that people want. 
But are they going to continue to take these risks if Washington continues to enforce a greater and greater tax penalty for success? 

At some point, they're going to start avoiding risk the way that I avoid Oklahoma casinos.  They'll either start playing elsewhere, where the penalties for success are lower, or they'll avoid the game altogether for a few election cycles. 

Go here to read an excellent piece from The Cato Institute about the increasing number of people becoming "Tax Traitors".  That's Washington's word for them, not mine.  I prefer the term "smart gamblers".


NickM said...

Just one issue Allen.

You tagged this under "unintended consequences".

You sure about the unintended?

Philip Jones said...

I admit I love also blackjack and other card games like poker. But to tell you the truth, this addiction is draining my pockets. One main reason is the taxes. Man, how can we get rid of taxes? Even gambling has it. I have good news though; my friend told me that playing blackjack in bitcoin casino is 100% tax free.