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by dayafter on October 18th, 2009
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.
by Sarge on August 28th, 2009
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.
by x-narpolax on August 28th, 2009
Its just a way to tax stupid people, or people who have too much extra money...
The poor shouldn't be playing.
by ccrunch171 on August 17th, 2010
It IS a tax, but only a voluntary tax. I play sometimes with that full realization.
Which casino game has the best odds of winning?
by Answerbag Staff on February 28th, 2011
| 1 person likes this
How do I pick the best three numbers for the lottery?
by Answerbag Staff on April 24th, 2010
| 6 people like this
Is the only way for things to be set right through sheer dumb luck?
by Have A Nice Day on November 9th, 2011
| 1 person likes this
Which is better:
1: Enter 50 drawings, each at 10 to 1.
2: Enter 25 drawings, each at 5 to 1.
Is there a difference? If so, what?
by Tom_M4625 on February 8th, 2011
| 1 person likes this
Why do people buy more lottery tickets when the prize is higher? Their chance of winning isn't any higher.
by DA BEN DAN yanggui zi on August 29th, 2010
| 3 people like this
You're reading Is the state lottery really just another way to tax poor people who cant do math (i.e. the odds)?
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Comments
thanks
by cheerio on October 18th, 2009
Very well thought out answer. +3.
by FoolishOne on November 23rd, 2009