A bill to amend the Internal Revenue Code of 1954 to revise the withholding rules applicable to certain parimutuel wagering payouts.

Amends the Internal Revenue Code to increase the amount of gambling winnings which are subject to the withholding of tax. Increases such amount from $1,000 to: (1) $2,000 in 1985 and 1986; (2) $3,000 in 1987; (3) $4,000 in 1988; and (4) $5,000 in 1989 and thereafter.