A little bit of tax history I learned today

I was reading about some things on Wikipedia today when I came across an interesting fact related to taxes in the United States. The quote I found of interest was in relation to a court case dealing with earnings of professional gamblers. What was even more interesting is that the person involved may not be all that well known to general public. Even though the world has seen a large poker boom there are still many successful long time players the everyday person doesn’t know. It’s always interested to me that not everyone has jumped on televised poker bandwagon. One thing is for sure though. Without this man and his taking on the Internal Revenue Service ( IRS ). Professional gamblers would be paying┬ámuch more of their winnings to the government.

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“Although Baxter is best known for his on-table poker accomplishments and the aforementioned staking of Stu Ungar, it’s his landmark case of William E. Baxter Jr. vs. the United States that will forever cement his status as one of the most influential poker players of all-time. It was the judge’s ruling that Baxter’s poker winnings should be classified as “earned income” contrary to its previous classification of “unearned income” which was taxable up to 70 percent. Thus, in the process, providing equal tax status to those earning a living as professional poker players.” Source Wikipedia

Billy Baxter (poker player) – Wikipedia

Card Player Magazine – Billy Baxter – The Man Who Made a Difference – He went heads up against the IRS – and won by Mike Sexton