President Trump Signs Executive Order Levying 93 Percent Tax on Foreign Casino Revenue
Wednesday 21 April 70200 Shares
By Adam Entous, Ellen Nakashima and Greg Miller July 21 at 6:51 PM
Today, President Trump signed an executive order implementing the Foreign Casino Tax (FOCAT), which taxes income received by U.S. citizens from foreign casinos at a rate of 93 percent.
"Overseas casinos have had an unfair advantage over U.S. casinos for years, and have hurt the U.S. casino industry, which employs thousands of Americans as bartenders, cooks, and other service jobs," said Treasury Secretary Steve Mnuchin. When asked about Trump's employment of foreign workers at Mar-a-Lago and other Trump properties, Mnuchin replied "the President is a savvy businessman, and we shouldn't question his staffing decisions."
The tax, surprisingly, is retroactive to 2016, so anyone with foreign casino income will have to resubmit their 2016 returns and apply the new 93 percent tax to any related income. Penalties and interests will, however, be waived for the 2016 taxes if they are paid before December 31.
Foreign leaders of other countries with casino industries raised objects to the State Department, but it's unlikely their complaints will lead anywhere.
Matt Zapotosky and Julie Tate contributed to this report.