Slams his aunt for sending lottery tickets for birthday gifts rather than cash
The following is a column written by Jameson Taylor, the vice president for policy at the Mississippi Center for Public Policy. It is presented here as an example of how lottery opponents feel they should be able to decide how you live your life, the type of entertainment you should be allowed to enjoy, and how you should spend your money.
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Every year my aunt sends me $5 worth of lottery tickets for my birthday. One year I won $2; another year $1; this year, I won an additional ticket, which also proved a loser. The closest I have come to recouping my aunt's investment is the year I won $4. I was thrilled, but not as thrilled as I would have been had she sent me cash instead. I just don't have the heart to tell her that her birthday present is little more than a tax receipt printed on fancy, scratch-off paper.
A lottery is only good for one thing: concealing the creation of a new tax. We've all heard the stories of how much revenue a lottery could generate. Governments generate revenue in essentially three ways: taxes, fees and fines. According to the Tax Foundation, the legal definition of a tax is that its primary purpose is to raise revenue. A fee, on the other hand, is "a charge imposed for the primary purpose of recouping costs incurred in providing a service" while a fine is "imposed for the primary purpose of punishing behavior." Based on these distinctions, the Tax Foundation concludes, "The lottery is in part a tax... the classic definition of a tax, upheld in nearly every federal and state court."
The North American Association of State and Provincial Lotteries boasts that 27 cents of every $1 spent on lottery tickets goes back to the government. This payment is not to be confused with taxes generated from winnings. In other words, state-run lotteries impose a 27 percent tax on the mere act of purchasing a lottery ticket.
It is irrelevant that buying the ticket is voluntary. Taxes are imposed on all sorts of voluntary activities, ranging from using a phone to going to the movies. What is unique about a lottery is that it is a state-run monopoly on a nonessential service — very different from natural monopolies, like water and electricity provision, with high startup costs. The purpose of the lottery monopoly is not to provide for a public need or to protect the public welfare, but to generate revenue. It's a tax.
Moreover, the lottery is a bad tax. It's inefficient, with much higher administrative costs than other forms of taxation, and it encourages nonproductive, if not downright destructive, behavior.
Let's look at a similar case: the ongoing debate over marijuana legalization. Economists believe marijuana legalization could generate billions of dollars in tax revenue. In 2016, Colorado collected $200 million in taxes on $1 billion in "legal" marijuana sales. That's a lot of money that could be used to fund roads and education. But at what cost? As with the lottery, some people would become addicts. As with the lottery, sales would drain money from other, likely somewhat more productive, purchases and activities. As with the lottery, lower-income, less educated users would consume a disproportionate share. In the case of marijuana legalization, the government would be condoning and profiting from a questionable activity. In the case of lottery legalization, the government would be initiating, advertising, promoting and bolstering a questionable activity.
While lottery advocates claim "people from all walks of life play the lottery," they often sidestep the question of who plays the lottery most frequently. (As I mentioned, even I "play the lottery" once a year on my birthday.) Research shows that those in the lowest income bracket play 2.5 times more than everyone else and that "increased levels of lottery play are linked with... males, blacks, Native Americans, and those who live in disadvantaged neighborhoods." A recent 10-year analysis of the New Jersey lottery confirms the typical player has a below-average income and lacks a college degree.
Those who tend to play the lottery most often, it seems, are either poor or think of themselves as poor. In this respect, the lottery is a tax on false hope. And while it may not be the government's business to tell people what or who to hope in, government shouldn't be monopolizing and encouraging such deception.
We already have enough taxes in Mississippi, and we already have enough false hopes. Let's not add anymore with a lottery.
I doubt that this man would feel this way, if he had won some money on the lottery tickets he received from his benevolent Aunt. Money has a way of changing a person's mind and changing a person's reasoning. All this man wants in the first place is the MONEY, as evidenced by the fact that he prefers for his Aunt to send him CASH MONEY. His reasoning about the lottery being some sort of twisted Tax, is B.S. He thinks the lottery is for lower income, less educated people. He does not want to be labeled as part of this socio-economic demographic >>> "poor or needy."
"Research shows that those in the lowest income bracket play 2.5 times more than everyone else and that "increased levels of lottery play are linked with... males, blacks, Native Americans, and those who live in disadvantaged neighborhoods." A recent 10-year analysis of the New Jersey lottery confirms the typical player has a below-average income and lacks a college degree."
"Those who tend to play the lottery most often, it seems, are either poor or think of themselves as poor. In this respect, the lottery is a tax on false hope. And while it may not be the government's business to tell people what or who to hope in, government shouldn't be monopolizing and encouraging such deception."
IGNORANT !!!
Well......
Maybe he should get to work on closing casinos too.
Good point.
Reminds me of a line from the movie Animal House: NO MORE FUN OF ANY KIND!
Personally, I see the, give or take, $.27 to each dollar spent on lottery tickets as a donation made to a particular cause dictated by the government.
The writer of the article refers to the lottery as a "bad tax. It's inefficient, with much higher administrative costs than other forms of taxation, and it encourages nonproductive, if not downright destructive, behavior." If the lottery wasn't legal in the majority of the country, the drug cartels would probably be running massive illegal lottery rings, thus huge administrative costs to combat that. Plus, they won't be there to help those who may have a gambling problem. At least, the states that do run lotteries have some sort of program available to help problem gamblers.
Lastly, one can't really compare the lottery with marijuana. Marijuana is a whole different subject that is better compared and contrasted with other current legal substances like alcohol. Speaking of destruction, alcohol is the most destructive substance or thing that is legal and second to heroin/opiates on an overall scale. The only real issue that marijuana poses is the effect on motivation and, to a lesser degree, drugged driving.
In conclusion, the lottery is a mostly benign activity that is controlled and not destructive compared to other forms of gambling like casinos and sports betting of all sorts.
Massive administrative costs trying to control people.
This has lead to locking up more blacks. Unequal Justice.
JT says " Every year my aunt sends me $5 worth of lottery tickets for my birthday."
That is too funny. Maybe he should send the lotto tickets back to dear old Auntie next time.
Another one trying to run everyone else's life. I thought a referendum was passed there 20 years ago allowing a lottery?
Will some enlighten me? Are their casinos on the water like in Indiana? Indiana repealed that stupid law, of course with all the investments in boats as we call them in KY I doubt they'll build land based casinos any time soon.
Just another excuse for me to never visit that backwards state. We have comp flights all the time to go there and I just pass on their casinos.
A quarter billion sure does sound good, plenty of Mississipians will be crossing over to get their Powerball tickets.
Just to show how obstinate and ornery I am, after reading this article I ran out and bought $40 worth of lottery tickets.
This article struck a nerve . Let's give proper credit for some valid facts.
1: the state is profiting at 27% of your money.
2: the guise of which..It's for public programs. Which yet again is a ruse for them to come off as the good guy.
3: The legal legislation is rarely for the "people". It is for the money- revenue.
Gambling addiction is alive and well.
Critics are like rear ends, everybody and thing has one. Hell, they're people who criticize others who spend their money on luxury items like expensive cars, luury houses etc. Then they're people who criticize how much CEO's make etc etc. If someone wants to take their money and play the lottery, it's their money in which to do so.
Ungrateful, send them back.