Is the state lottery really just another way to tax poor people who cant do math (i.e. the odds)?
by 
cheerio
ANSWERS: 3
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Its just a way to tax stupid people, or people who have too much extra money... The poor shouldn't be playing.
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I would say it's more like taking advantage of people with a gambling problem. I'm poor and would never consider playing the lottery.
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Well, yes and no... In the strict sense of the word you couldn't call it a "Tax" since it is completely voluntary. Unlike say, the payroll tax which every working person must pay. That said however, states retain about 30% of lottery revenue, disbursing the remaining 70% to winners. Compare this with the sales tax levied on most other products sold in retail stores which in most states is approximately 5%. So, one could think of the lottery not so much as a "tax" but rather as a "highly taxed" product, similar to alcohol, cigarettes, and gasoline which are also taxed by states at a much higher rate than other products. It should be noted that it is true that the poor do tend to spend a much higher percentage of their total income on the lottery. Studies have shown this to be as high as 5%-7% of poor peoples' income which is sort of insane when you consider the odds of winning, leading many to call the lottery a "tax" on their incomes.
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