Share Tweet Winning the lottery is the ultimate dream for many people: Many people try playing the lottery while obviously only a select few win, let alone win it big.
State lotteries amount to a hidden tax on the poor. And they are encouraged by state-sponsored ads suggesting everyone can win, win, win! State lotteries, which once were illegal, now exist in most states. Beyond the moral, mental health or religious debates over gambling, lotteries are another example of how society preys on the poor and the working-class.
Legalized gambling is almost everywhere. Legalized gambling is available in every state except for Utah and Hawaii. Lotteries were illegal for most of the 20th century, but that changed in when New Hampshire—a state without an income tax— reinstituted a state lottery.
The first lotteries predate the American Revolution, but those mostly privately run efforts were so corrupt they were completely prohibited by every state in They suck billions out of the economy. The rest went to prizes and commissions to stores selling the tickets.
Many corner stores could not remain open without the income from lottery sales. They are a tax from anti-tax politicans. Tax-averse Democrats and Republicans have increasingly been relying on state lotteries to subsidize basic public programs like schools instead Poverty and lotteries raising taxes for that purpose.
They hit the poorest the hardest. The reason people play lotteries varies, but it mixes hopes and dreams with desperation: Communities of color, less-educated spend the most.
They redistribute money up the economic ladder. Most people buy tickets and win little or nothing.
This is taking more money from the poor, working and lower middle-classes than from those most able to pay taxes. These billions also are diverted away from local businesses—with the exception of the stores where tickets are sold.
They give the wrong message about solving poverty. This easy money for states diverts political debate away from society-wide analyses and solutions to what prevents people from moving up the economic ladder.
Instead, it pushes individuals in marginal circumstances toward gambling as their hope for gain. They amount to one of the highest investment tax rates. Another way to look at the social policy hypocrisy surrounding state lotteries is to skip the moral dimension—the religious objections to gambling, the mental health costs of gambling addition, the hidden state income tax—and just compare the tax rates on this form of investment with tax rates on other types of inventments, such as stocks.
State lotteries impose a 38 percent tax rate on buying tickets, according to Johnston. No taxes are paid when a person buys a stock or bond, a more preferred investment vehicle for wealthier households.
Moreover, the current federal tax rate for earnings from short-term investments—held less than a year—ranges from 10 to 35 percent. Hypocritical when compared to state drug laws.
|How the lottery exploits the poor | ERLC||February 23, Bryan Kelleher I find your tax-on-the-poor argument misinformed and condescending.|
|Lotteries: Preying On The Poor? - CBS News||Corley Leave a Comment I was talking with a buddy of mine who owned a landscaping business about the Rich Habits and the Poverty Habits and mentioned to him that my study showed that poor people played the lottery more than rich people. He became very animated and told me how he pays his employees at the end of the week, every Friday, and then watches as they run to the convenience store to buy lottery tickets.|
|Lottery sales linked to poverty, unemployment rates - John Locke Foundation||Apparently, the Powerball lottery. All across the country last week, millions of people lined up for hours to get their shot at a payout that would end their financial struggles.|
|The Poverty of Powerball||Just Abstract State-sponsored lotteries are a lucrative source of revenue. Despite their low payout rates, lotteries are extremely popular, particularly among low-income citizens.|
|What the lottery has to say about poverty||Linkedin Comment There are some taxes that folks just love.|
One of the rationales for criminalizing drugs is that abuse leads to addiction, which harms individuals, families and society at large. But state-sponsored gambling also feeds addictive behavior—people who are addicted to gaming, including lotteries.
Big winners often see their lives unravel. One of the surprises that comes with winning the lottery—for the rare few who win big—is how a fast infusion of money can wreck families, disrupt friendships and even invite violent crime, con-menand targeting by jealous family members.
Some winners spend all their winnings in no time. Others just use it to fuel more gambling binges. Revenue-strapped state legislatures may see state lotteries as an easy way to bring in the hundreds of millions that they need for basic government services—schools, police, roads and social safety nets.
But state lotteries have become an easy way to take from the least wealthy Americans and avoid the harder task of making everyone pay their fair share. Get more stories like this in your inbox, every day.The following article is part of AlterNet's series on poverty, Hard Times USA.
State lotteries amount to a hidden tax on the poor. They eat up about 9 percent of take-home incomes from households. Home News Poverty Celebrating the lottery, and football, and all that they entail Celebrating the lottery, and football, and all that they entail.
January 11, Steve Ahlquist Poverty 0. Gina Raimondo and Jonathan Kraft. Although state lotteries, on average, return just 53 cents for every dollar spent on a ticket, people continue to pour money into them — especially low-income people, who spend a larger percentage of their incomes on lottery tickets .
The connection between lottery play and income is unfortunate because the purchase of lottery tickets by the poor can be considered a type of ‘‘poverty trap’’—a cycle of inefﬁcient behavior that prevents.
Poverty and Lotteries specifically for you. for only $/page. Order Now. The society and government do not let people are able to get away from the lure of the lotteries and make people to be simply under an illusion “Jackpot”.
Also author shows us that other many states have slogan to encourage people to keep buying lotteries. The psychological reasons that explain the connection between poverty and lottery play are complex. A experimental study in the Journal of Behavioral Decision Making states that “it would be naive to think that low-income individuals disproportionately play lotteries due to ignorance or cognitive errors.”.