And a tax on people who are poor at math.
As the article points out, state lotteries give much worse odds than even that bookie down at the barber shop with the football cards. It is almost impossible to win more from a state lottery than what you sink into it. The vast majority of state lottery "winners" win anything from a free ticket to maybe $40 or $100. Of course, most people winning these prizes are spending that much on lottery tickets a month - month after month. Then you have a few winners in the $250 to $1,000 category. Again, these are usually won by people who have easily put that much money into the system several times over before they finally "won."
As for the rare million dollar winner (which is less frequent than people who have been hit by lightning), the state shamelessly parades them out to the media as willing shills to promote the ripoff that is the state lottery to give false hope to all the other suckers out there to encourage them to keep playing.
How many people do you know at work or in the family who are always buying these tickets and who pathetically spend "mentally" their million dollar winnings. They say stupid things like "When I win my million dollar Powerball prize, I'm going tell my boss to shove it! Yeah baby!"
These people, of course, are the ones who can least afford these lottery tickets. They usually do not manage their money very well and are living paycheck to paycheck. Which explains why so many lottery winners end up foolishly spending themselves back into financial ruin again anyhow. To grasp the mindset of a typical "big" lottery winner, consider that when a large prize is won, the winner has a choice of receiving a smaller lump payment up front or a annual stipend for 20 or 30 years that adds up to far more money in the long run. The winners typically opt for the lump sum in which case they get maybe half the money they would have ended up with had they selected the other option and spend it away all the quicker.
"The private wagering business is forced to give back approximately 90 percent of all money, State lotteries, by contrast, give back only 50 percent.
In effect, state lotteries function as a kind of stupidity tax. .....self-evidently bankrupt principle that it is the state's business to try to profit from the exploitation of human weakness.
State-run lotteries feature the worst of all worlds. ....they allow the strong to prey upon the weak, by allowing the state's tax burden to be shifted toward the poor
...state lotteries have nothing to do with any moral principle, and everything to do with the political principle that the easiest way to raise taxes is always to create a new, preferably indirect, tax on the poor."
I do disagree with this article about lotteries.
1. Gambling is going to happen. It's impossible to regulate because it's too easy to create.
2. States shouldn't be in the business of running businesses....even post offices.
3. Legalize gambling and collect sales taxes.
4. I don't mind the "poor" paying taxes. It's their responsibility to do so, and it robs them of their voice if they get carried around by the rest of us. In fact, I'd argue that if someone isn't paying a fair share percentage of the tax burden, then they shouldn't be allowed to vote. (Walt Williams was arguing for dividing the dollars needed by the number of citizens as fair share. Others argue for ownership of property. I argue for fair percentage share of tax burden as the basis for the right to vote.)
And as Neal Boortz says, "And the ticket is your receipt."
Do I really need a < /sarcasm>?
What's wrong with a stupidity tax? I'd be more concerned about a stupidity reward, such as our evolving socialism indulges in.
There -- did I cover all the bases?
There is MORE going on here.
1. Socialized government spending has gotten out of hand.
2. Transfer of MORE funds from the 'producers' to the non-prodfucers may cause a backlash,
3. The 'overseers' of this monetary boondoggle have LOTS of 'free' cash to spend on perks,
4. Here is a chance to get those dollars BACK that got sent out as: Welfare, Food Stamps, WIC, Section Eight rental loot.
5. So when mama, with her 4 WIC babies in tow, pays for better food than YOU eat with FoodStamps, and then heads for the Lottery Machine with real MONEY in hand, don't blow TOO big of a fuse ranting at her: rant instead at the wonderful system we have bought ourselves.
I dont really like the articles I read about how State lotteries rip off the poor. It implies that someone should be allowed to step in and manage their money for them. It is along the same line of those who are against neighborhood bars because they generally attract the lower income people, the wealthier people generally go to theme bars.
It is elitism in its purest form.
Aside from that, ponder these facts about the latest powerball hoopla [figures are rough...but it serves the point]:
All Players All Income 787.00 Million
Avg Income Tax [20%] -157.50
State Lottery Income 630.00
State Lottery Gross Profit -315.00
State Lottery Penalty -145.00
State/Fed Tax 33.5% -57.00
Winners proceed 113.00
Winners proceed as % %14.30
Government proceeds 674.00 Million
In my opinion the biggest story about the latest Lotto craze was untold. From sweat to ticket, Americans shelled out approximatley 787 Million dollars into this ponzi scheme. The government kept 674 Million by virtue of their monopoly.
And to add insult to injury, If the winner was to die, the governement would take yet another 56.5 Million dollars from the family.
I don't know about you guys, but I really think that this country is screwed if we cant see the injustice in our present governemnt...pretty sad...