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All states Lottery...tax free

Topic closed. 9 replies. Last post 7 years ago by Wintariofan.

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June 22, 2005
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Posted: March 4, 2007, 1:48 pm - IP Logged

If the U.S. had a nation wide lottery, we could have jackpots that are tax free.

Why is it that the U.S. dosen't do this.

The only reason Austrailia, and Canada can afford to have a tax free lottery is because they have enough funds coming in to be able to do that.

    fbird's avatar - nw archer.jpg
    Fenton,Mi
    United States
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    May 12, 2003
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    Posted: March 4, 2007, 2:31 pm - IP Logged

    If the U.S. had a nation wide lottery, we could have jackpots that are tax free.

    Why is it that the U.S. dosen't do this.

    The only reason Austrailia, and Canada can afford to have a tax free lottery is because they have enough funds coming in to be able to do that.

    naw...that would never happen...our elected officials are too greedy, no matter the politcal party!!! Michigan's lottery, when it first started, did not tax the winnings and then someone decided that was a bad idea and they changed it so it was taxable income...pure greed!!!!!!!!!!!

    VAL

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    Just walk beside me and be my friend.

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      LuckyLilly's avatar - savy chick.png

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      Posted: March 4, 2007, 2:38 pm - IP Logged

      Idaho didn't tax until they got an $80 million Powerball winner, then all the sudden they added up how much money they were losing, and implemented the tax.  BTW at that time there was no cash option on the PB so the winner has to pay state taxes every year now when she gets her annuity even tho there was no state tax when she won.  Thumbs Down  One more reason people in states that do not tax should consider taking the lump sum instead of annuity because there's a good chance their state will get greedy too.

        dvdiva's avatar - 8ball

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        September 17, 2003
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        Posted: March 4, 2007, 3:59 pm - IP Logged

        If the U.S. had a nation wide lottery, we could have jackpots that are tax free.

        Why is it that the U.S. dosen't do this.

        The only reason Austrailia, and Canada can afford to have a tax free lottery is because they have enough funds coming in to be able to do that.

        Because these countries aren't run by idiots. Or at least idiots to a lesser degree. It's not a matter of afford/ not afford it's a matter of common sense. They realize that there are many different options for people to gamble on and offering tax free winnings makes state sponsored games very attractive.

        Also tickets not cashed in go to the players in the form of bonus rounds or bigger jackpots. Government officials in the US are too stupid and greedy to do this as well. 

          jarasan's avatar - new patrick.gif
          Viva La Chance!
          Rockville, MD.
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          Posted: March 5, 2007, 8:09 pm - IP Logged

          Because these countries aren't run by idiots. Or at least idiots to a lesser degree. It's not a matter of afford/ not afford it's a matter of common sense. They realize that there are many different options for people to gamble on and offering tax free winnings makes state sponsored games very attractive.

          Also tickets not cashed in go to the players in the form of bonus rounds or bigger jackpots. Government officials in the US are too stupid and greedy to do this as well. 

          They also don't elect prima donnas with fat govt. pensions that just keep getting fatter every year.  All local, state, and federal workers, officials, elected officials perpetuate the Jabba the Hutt tax collection scheme, so they can keep their precious pensions, overpaid jobs, and free health care for the rest of their lives. Everything is taxed one way or another, look at what just happened up in Michigan, a couple running their car on friggen vegetable oil are being harassed for being fuel producers and not paying taxes!  What an outrage! Don't they have anything better to do?  Why don't they illegalize cigarettes? Why? Because they make too much money from them and couldn't live without it,  same goes for the lottery.  Jabba the Hutt needs his lottery money or he'll have to lose weight, and Jabba don't do diets or work out for that matter.

          LOL jarasan P.S. I hope this clears everything up.

            Coin Toss's avatar - shape barbed.jpg
            Zeta Reticuli Star System
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            Posted: March 6, 2007, 10:39 am - IP Logged

            There's a post somewhere on the board about the Australian lottery being $1.03 a ticket, and that's how the prizes are tax free - for the winner- everyone else who has played has 'pre-paid' the tax.

            Not a bad idea at all. In most forms of gambling, the losers opay the winners (and the house keeps the 'vig') so why not carry that the other step and let the losers pay the tax? Makes sense to me.  

            Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

            Lep

            There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

              Badger's avatar - adu50016 NorthAmericanBadger.jpg
              Wisconsin
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              Posted: March 6, 2007, 3:49 pm - IP Logged

              If the U.S. had a nation wide lottery, we could have jackpots that are tax free.

              Why is it that the U.S. dosen't do this.

              The only reason Austrailia, and Canada can afford to have a tax free lottery is because they have enough funds coming in to be able to do that.

              C'Mon Pac ! I've read enough of your posts to know you aren't that naive.

              This is the USA man ! Land of the Big Spender politician ! If they can tax something anything at either the Fed or state or local level, they will. If they can't tax it, they will put a "fee" on  it.

              There is no incentive for our govt to not tax something like lottery winnings. What would they gain? Never mind that all the money that comes from the jackpot comes from the bets bought with already taxed money.  We live in a nation of tax and re-tax. 

              ============

              How can you tell if a politician is lying?

              Answer: His lips are moving.

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                Honduras
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                Posted: March 6, 2007, 4:20 pm - IP Logged

                What i don't like about tax is that they take "half" of your money if you win big...I feel it should be between 25% and 30%...

                Also where does the money that they take from tax goes? Does it go into education or the government..?

                 

                 

                "MOre important than winning the state's lotteries is the movie "REd Planet..." ..."

                  Badger's avatar - adu50016 NorthAmericanBadger.jpg
                  Wisconsin
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                  Posted: March 6, 2007, 8:51 pm - IP Logged

                  What i don't like about tax is that they take "half" of your money if you win big...I feel it should be between 25% and 30%...

                  Also where does the money that they take from tax goes? Does it go into education or the government..?

                   

                   

                  "MOre important than winning the state's lotteries is the movie "REd Planet..." ..."

                  Each state has its own Education Fund, which is composed of tax money. Just like they have a fund for spending on transportation, roadbuilding, etc. So however you look at it, the govt in the state gets the money they take from you and the Fed govt gets the money they take from you.  They can then "raid" any fund they want (we got a governor here that constantly raids the transportation fund and gives it to the educational fuund because the teachers union here is a big campaign fund contributor to him) and give it to any other fund they want.  Basically, they do whatever they want with it. Then later they complain that they have a deficit.

                  ============

                  How can you tell if a politician is lying?

                  Answer: His lips are moving.

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                    Kingston, Ontario
                    Canada
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                    Posted: March 6, 2007, 9:31 pm - IP Logged

                    If the U.S. had a nation wide lottery, we could have jackpots that are tax free.

                    Why is it that the U.S. dosen't do this.

                    The only reason Austrailia, and Canada can afford to have a tax free lottery is because they have enough funds coming in to be able to do that.

                    NOT TRUE !  The reason Canada and our provincial games are tax free is that the GOVERNMENT runs the lottery and no outside operator.  They advertise the jackpot as they are.  The government takes its shares before the jackpot is determined.  That's why you will never see a jackpot in Canada ever get to 100 million.  The U-S advertises its prizes before any government intervention.  It's not about funds...it's just the way each province (OLG, WCLC, Loto Quebec, ALC, BCLC) has been run since lotteries began nearly 40 years ago. 

                    The ILC (Interprovincial Lottery Corporation) who runs the national games Lotto 649 and Super 7, are not federal government operation but a contingency of the 5 lottery jurisdictions.  The ILC was created to run national games for hospitals such as the first games Super Loto and Provincial.  While the provinces raise money for sports, culture, recreation, arts.  At one point any legitimate organization could apply for lottery grants.  Today, the money is put into a general revenue fund and is used for anything the government wants.  IE., paying off the private sector, their provincial debt, grant projects.   

                    So when you see a jackpot advertised, that's exactly what you get.  On a sidenote, did you know that jackpots are not estimated now, they are guaranteed.  Story goes the ILC and their counterparts got tired of hearing players complaining at the prize office that the jackpot said $4 million and they were upset when being handed a cheque for $3,980,977 eg.  They were wondering where their other $20,000 was.  So they try and mostly have guaranteed jackpots to coddle those players.