Oregon tribes are alarmed by senators’ plan to remove the tax deduction for gambling losses Nigel Jaquiss, Willmette Week · May 22, 2019 at 7:47 pm This bill yokes together two disparate issues: the high cost of higher education, and Oregon’s addiction to gambling revenues, which fill the state’s coffers. WHAT IT WOULD DO: The bill puts forth two solutions to those problems, one more controversial than the other. It allows qualified taxpayers to deduct a portion of college tuition and fees (uncontroversial) and would make up for the lost revenue to the state by ending the tax deduction for gambling losses (controversial). Federal law allows gamblers to subtract losses from wins and pay taxes on the difference—i.e., net earnings. As it does with most federal tax rules, Oregon has mimicked that tax treatment but now proposes to stop. “Nobody in Oregon decided that subsidizing gambling was a good idea,” Hass testified last week.