Should The Lottery Be Tax FreePrev Topic Next Topic

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Do you think the big lotteries should be tax free?

Yes

[ 54 ]

[ 81.8% ]

[ 7 ]

[ 10.6% ]

Limited, State and Fed %

[ 3 ]

[ 4.6% ]

Higher, Pay More

[ 2 ]

[ 3.0% ]

Total valid votes

[ 66 ]

Discarded votes

[ 0 ]

fastball 9

Dolce, Illinois
United States
Member #26,461
November 18, 2005
50 Posts
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Nov 8, 2007, 3:42 pm

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.
JimmySand9

United States
Member #1,826
July 11, 2003
2,645 Posts
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Nov 8, 2007, 4:44 pm

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

(insert signature here)
justxploring

Wandering Aimlessly
United States
Member #25,359
November 5, 2005
4,461 Posts
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Nov 8, 2007, 5:13 pm

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

United States
Member #0
May 31, 2000
0 Posts
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Nov 8, 2007, 6:16 pm

Quote: Originally posted by justxploring on Nov 8, 2007
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

Zeta Reticuli Star System
United States
Member #30,469
January 17, 2006
11,788 Posts
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Nov 9, 2007, 1:03 am

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. So many systems, so many theories, so few jackpot winners.

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

West Side of Sunny Florida
United States
Member #55,046
September 8, 2007
3,371 Posts
Offline

Nov 9, 2007, 7:15 am

Quote: Originally posted by JimmySand9 on Nov 8, 2007
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 >>>> <<<< NYS citizen ..

Money won is twice as good as money earned!
Coin Toss

Zeta Reticuli Star System
United States
Member #30,469
January 17, 2006
11,788 Posts
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Nov 9, 2007, 9:20 am

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. So many systems, so many theories, so few jackpot winners.

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.
KY Floyd

NY
United States
Member #23,834
October 16, 2005
4,772 Posts
Offline

Nov 9, 2007, 9:52 am

"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

MD
United States
Member #1,701
June 18, 2003
10,731 Posts
Offline

Nov 9, 2007, 11:36 am

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.
fastball 9

Dolce, Illinois
United States
Member #26,461
November 18, 2005
50 Posts
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Nov 9, 2007, 2:36 pm

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

Zeta Reticuli Star System
United States
Member #30,469
January 17, 2006
11,788 Posts
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Nov 9, 2007, 7:30 pm

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. So many systems, so many theories, so few jackpot winners.

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

Harbinger

Maryland
United States
Member #44,102
July 30, 2006
6,608 Posts
Offline

Nov 10, 2007, 11:46 am

Taxes:

FJB
savagegoose

adelaide sa
Australia
Member #37,135
April 11, 2006
3,341 Posts
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Nov 11, 2007, 8:00 am

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.

" Still swinging, still missing "
2014 = -1016; 2015= -1409; 2016 = -1171; 2017 = -1257 ; 2018 = - 1380 = TOT = - 6233

keno historic = -2291 ; 2015= -603; 2016= -424; 2017 =-427; 2018= -223 TOT = -3968

:
time*treat

United States
Member #13,130
March 30, 2005
2,171 Posts
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Nov 11, 2007, 8:22 am

...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 ... a manufacturing industry (Don't get me started)

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

United States
Member #4,121
March 23, 2004
819 Posts
Offline

Nov 12, 2007, 8:22 am

I vote tax free.

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