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Should The Lottery Be Tax Free

Topic closed. 23 replies. Last post 9 years ago by runningrooster.

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Do you think the big lotteries should be tax free?

Yes [ 54 ]  [81.82%]
No [ 7 ]  [10.61%]
Limited, State and Fed % [ 3 ]  [4.55%]
Higher, Pay More [ 2 ]  [3.03%]
Total Valid Votes [ 66 ]  
Discarded Votes [ 0 ]  
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Dolce, Illinois
United States
Member #26462
November 18, 2005
50 Posts
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Posted: November 8, 2007, 3:42 pm - IP Logged

So much of the lottery revenue goes to states and other government functions.  Some use it to pay for education, others highways.  Some even plan to contract out their lotteries to the private sector.  And, if you are lucky enough to win, you get nailed for state and federal tax hits.

 

Given that lump sum means you take the lumps, and taxes on top of that, wouldn't it be fair to just make the lottery tax free for winners?  And, isn't government getting into a rather bad way to finance their operations by using lottery funds in the first place?  Why not just let them take a fixed percentage and allow the winner to take the rest?

 

Finally, we as Americans seemed to have taken this lottery tax hit business as a done deal.  Without a wimper.  Maybe it's time we started to speak out about this strange system.

    Avatar

    United States
    Member #1826
    July 11, 2003
    2645 Posts
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    Posted: November 8, 2007, 4:44 pm - IP Logged

    Yes. The government already got their money when you bought the ticket. They don't need more.

    (insert signature here)

      justxploring's avatar - villiarna
      Wandering Aimlessly
      United States
      Member #25360
      November 5, 2005
      4461 Posts
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      Posted: November 8, 2007, 5:13 pm - IP Logged

      I wonder if anyone here will vote "no."   Of course I don't think the lottery should be taxed.  I don't think anyone should pay income tax either, although I do believe we need to contribute our share to our country and its citizens, and I am willing to pay do my part.   However, at this time we have taxation without representation. 

        Guest


        Member #0
        January 1, 2000
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        Posted: November 8, 2007, 6:16 pm - IP Logged

        I wonder if anyone here will vote "no."   Of course I don't think the lottery should be taxed.  I don't think anyone should pay income tax either, although I do believe we need to contribute our share to our country and its citizens, and I am willing to pay do my part.   However, at this time we have taxation without representation. 

        We DO have taxation WITH representation.Trouble is,that representation ignores us until its time to get re-elected.Then they promise us the moon and then they promptly forget what they promised after they get re-elected.Seems to me that if an elected official makes a campaign promise and then fails to make an effort to keep that promise he/she should spend some prison time for fraud.Of course we'd need to build some new prisons to hold them all.

          Coin Toss's avatar - shape barbed.jpg
          Zeta Reticuli Star System
          United States
          Member #30470
          January 17, 2006
          10344 Posts
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          Posted: November 9, 2007, 1:03 am - IP Logged

          This has come up before- we have at least one Australian member here and they said that in Australia a ticket is $1.03 (AUS) and that all those $.03s pay the tax, thus the winner isn't taxed, great idea if you ask me. 

          I think the U.s. is the only country that taxes gambling winnings, most other places that have legalized gambling, whatever you win is yours, tax free, cold cash.  

          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.

            bashley572's avatar - starwars14
            West Side of Sunny Florida
            United States
            Member #55048
            September 8, 2007
            3371 Posts
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            Posted: November 9, 2007, 7:15 am - IP Logged

            Yes. The government already got their money when you bought the ticket. They don't need more.

            What? Do you pay tax when you buy the ticket?  Not in NY... which is why it would never change here. 

            1) the State governement would NEVER give up on the revenue it gets from the winners

            2) the players would NEVER pay a tax @ the time of purchase.  the thought being "let the state get the money IF I WIN"  Also the state doesn't tax any wins below $600 anyway which is where most people win - below $600

            Once our state has started a tax there is NO way to stop it.  Unless everyone left the state and there was no one left to pay it, which might happen if the taxes keep going up.

             

            Taxes >>>>Hit With Stick <<<< NYS citizen ..

            Money won is twice as good as money earned!

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
              United States
              Member #30470
              January 17, 2006
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              Posted: November 9, 2007, 9:20 am - IP Logged

              bashley572

              Some people look at the lottery as a voluntary tax to begin with.

              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.

                Avatar
                NY
                United States
                Member #23835
                October 16, 2005
                3474 Posts
                Online
                Posted: November 9, 2007, 9:52 am - IP Logged

                "in Australia a ticket is $1.03 (AUS) and that all those $.03s pay the tax, thus the winner isn't taxed, great idea if you ask me. "

                Until I win a jackpot, making all the losers pay the winners' taxes doesn't sound so great to me.

                Some people seem to be confused about who gets money from ticket sales. It's the states, not the federal government. The federal government only gets a share by taxing the winnings, so don't expect lottery winnings to ever become tax exempt unless we switch to a federal sales tax. If you want more than what's left after taxes wait another roll or two before playing. 

                  four4me's avatar - gate1
                  MD
                  United States
                  Member #1701
                  June 18, 2003
                  8359 Posts
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                  Posted: November 9, 2007, 11:36 am - IP Logged

                  here's a couple of questions you have to ask yourself

                  (are the states paying taxes on the money they take in on the lottery)

                  If not then why should we have to pay tax on a lottery win.

                  If you take the cash option on a jackpot win why doesn't the state absorb your tax obligation on your win from their take of the prize. So you don't have to give them your money on half of what they give you. Leaving you with less than half of the jackpot.

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                    Dolce, Illinois
                    United States
                    Member #26462
                    November 18, 2005
                    50 Posts
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                    Posted: November 9, 2007, 2:36 pm - IP Logged

                    It seems that the lottery has poured an awful lot of dough into various state coffers.  But, the process of bringing lotteries into each state was based on massive concessions, usually due to the long held view that it was gambling and no good.  So, the states were going to milk them good in order for them to be legal.

                    I noticed the comments about tax free lotteries in other countries.  Places that don't have, I believe, such religious opposition to gambling, and who probably took at more fair minded view of running a lottery.

                    It's almost as if the attitude towards lotteries have always been 'your just lucky we don't make them illegal, so take your money and shut up'.  Lotteries, like sin tax targets such as cigarettes and booze, will continue to be nailed for their potential tax revenues. 

                    The idea that someone can win a $300 million Mega Million lottery, and walk away with about $100 may not seem like a big deal.  But, to me, that just doesn't right, or fair.  But who out there will take up the cause of lottery players?

                     No one I know of.

                      Coin Toss's avatar - shape barbed.jpg
                      Zeta Reticuli Star System
                      United States
                      Member #30470
                      January 17, 2006
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                      Posted: November 9, 2007, 7:30 pm - IP Logged

                      KY Floyd

                      "Until I win a jackpot, making all the losers pay the winners' taxes doesn't sound so great to me."

                      Bingo! Everyone who is saying the winners should have to pay the tax would be singing quite a different tune if they became a winner. 

                      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.

                        jarasan's avatar - new patrick.gif
                        Harbinger
                        D.C./MD.
                        United States
                        Member #44103
                        July 30, 2006
                        5583 Posts
                        Online
                        Posted: November 10, 2007, 11:46 am - IP Logged

                        Taxes:Puke

                          savagegoose's avatar - ProfilePho
                          adelaide sa
                          Australia
                          Member #37136
                          April 11, 2006
                          3300 Posts
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                          Posted: November 11, 2007, 8:00 am - IP Logged

                          yeah im from australia, and its always touted as tax free but it aint., the one thing is gov will always get their cut. it just depends who pays, actually i think the winner paying is actually a better idea. but then its ony a few cents per person if we pay  on ticket sale so no one notices or cares.

                          2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

                          keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

                            time*treat's avatar - radar

                            United States
                            Member #13130
                            March 30, 2005
                            2171 Posts
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                            Posted: November 11, 2007, 8:22 am - IP Logged

                            ...Of course I think we'd do better to be rid of most (if not all) taxes. We did quite well, as a nation, before 1913. We even had something called Drum... a manufacturing industry (Don't get me started) Mad

                            In neo-conned Amerika, bank robs you.
                            Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

                              JackpotWanna's avatar - squiz

                              United States
                              Member #4121
                              March 23, 2004
                              817 Posts
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                              Posted: November 12, 2007, 8:22 am - IP Logged

                              I vote tax free.   Big Grin Santa