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How will the new US gambling deduction law affect taxpayers in 2026?
Starting in 2026, US taxpayers can only deduct 90% of gambling losses against winnings, a change introduced in the recent tax law. This means some gamblers may owe taxes even if they break even or lose money, especially those with high gambling activity. The law aims to increase revenue but has faced bipartisan pushback, with lawmakers seeking to restore full deductions. If you gamble professionally or frequently, this change could significantly impact your tax liabilities.
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What is Oman’s new income tax for high earners and how does it compare globally?
Oman announced a 5% personal income tax for high earners, effective from 2028. This is the Gulf region’s first such levy, targeting individuals earning above OMR 42,000 (~$109,000). The tax aims to diversify revenue sources and reduce dependence on oil. Compared to other Gulf countries, Oman’s move marks a cautious but significant step toward fiscal diversification, aligning with regional trends to introduce personal income taxes gradually.
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Could these tax changes impact gambling habits or foreign investment?
Yes, the US’s new gambling deduction limits could discourage high-volume or professional gambling, potentially reducing gambling-related investments or activities. Meanwhile, Oman’s new income tax might influence high earners’ decisions to work or invest in the country, especially if they are affected by the tax threshold. Both policies could lead to shifts in foreign investment patterns, with some investors seeking more tax-friendly environments.
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Are there any exemptions or special rules for these new taxes?
In Oman, the 5% income tax applies mainly to high earners earning above a certain threshold, with some exemptions and social considerations. For the US gambling law, professional gamblers and those with specific circumstances may have different deductions or reporting requirements. It’s important to consult tax professionals to understand how these rules apply to your specific situation.
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What are the long-term implications of these tax reforms?
The US’s limit on gambling deductions could reshape the gambling industry, potentially reducing profitability for some professionals and affecting casino revenues. Oman’s new income tax signals a shift toward fiscal diversification in the Gulf, possibly encouraging more sustainable revenue sources. Overall, these reforms reflect broader trends of governments adjusting tax policies to meet economic challenges and reduce reliance on volatile resources like oil.