Why no tax on lottery sales?

Reply #8

Ron5995 — Tue, 10 Mar 2015 01:31:15 GMT

Never thought of the sales tax angle. Many jurisdictions are desperate to generate revenue any way possible. If states get too carried away with taxes on lotteries, more players will turn to the illicit numbers rackets and/or other alternatives, such as casinos.

On an aside, Pennsylvania's governor has recently proposed numerous tax increases, including levying PA state income tax, which itself could increase, on lottery winnings, which are currently tax exempt at the state level. Wouldn't be... [ More ]

Reply #7

lejardin — Mon, 09 Mar 2015 17:28:59 GMT

Oh? Since when does this government need to make sense on anything, especially taxes.

Reply #6

maringoman — Mon, 09 Mar 2015 14:41:30 GMT

It wouldn't make sense for the government to tax itself

Reply #5

Scratch$ — Mon, 09 Mar 2015 05:00:00 GMT

Playing the lottery is completely voluntary, whereas property taxes are mandatory.

Reply #4

Coin Toss — Mon, 09 Mar 2015 04:21:37 GMT

One of the Aussies here ( I think it was savagegoose) once posted that in Australia a ticket is $1.03 AUSD, all the .03s has already paid the 'tax' for the winner (hence there is no tax).

Also the play slips have a NP box you can check, No Publicity. So no tax and anonymous, what more could you ask? The US needs to copy this.

Reply #3

geerod2001 — Mon, 09 Mar 2015 04:18:48 GMT

Yes I agree about our earnings being initially taxed on both the federal and state levels and being taxed again on our item purchases.

All state lottery's are corporations,and just like any corporation producing a product to sell, it has a sales tax attached to it at the end (use/sale).

Except in no sales tax states of course,which are few in the U.S.

Any tax experts or CPA's out there to shed light on this subject?

I am very curious about this topic

Reply #2

RJOh — Mon, 09 Mar 2015 04:05:15 GMT

Lottery is a tax, next thing someone will be asking is why isn't sale taxes added to your property tax bill.

Reply #1

MaximumMillions — Mon, 09 Mar 2015 03:55:28 GMT

I guess because you are already buying it with taxed money and then the government taxes your winning and your capital gains from the winning.

They are probably afraid people would burn them down if they were as bold to tax the wager/ticket sale.

Why no tax on lottery sales?

geerod2001 — Mon, 09 Mar 2015 03:12:17 GMT

I am Just curious as to every thing we seem to purchase these days there is always a sales tax added to the item.

Why not on lottery ticket purchases? Anyone know why that is