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** The Stupid Tax **

Topic closed. 40 replies. Last post 4 years ago by CinCin.

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rdgrnr's avatar - walt
Way back up in them dadgum hills, son!
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April 28, 2009
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Posted: February 21, 2013, 2:57 pm - IP Logged

Did you mean putz instead of schmuck?

Yeah, either one'll work but schmuck is slightly more genteel by definition:

Putz

Literally, vulgar slang for the male member, not to be used lightly. More offensive than the schmuck, which can be used affectionately or teasingly. Rarely used to describe the member, schmuck does that too.

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    New Member

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    Posted: February 21, 2013, 5:14 pm - IP Logged

    Hi:

    I'm not sure why so many people took offense to the Stupid Tax.

    I wasn't knocking anyone.....or even Warren Buffett. I was imply pointing out the idea or notion that a lottery is a freewill tax on the stupid.

    I'm about as far from Karl Marx as you can get. I'm pro business, family, freedom and the lottery :)

    But in the back of my mind I knew the term "Stupid Tax" would make lottery players mad....so I'm at fault for that.

    However....the lottery is a freewill offering people give knowing the probability of winning is astronomical.

      helpmewin's avatar - dandy
      u$a
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      February 22, 2011
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      Posted: February 21, 2013, 5:17 pm - IP Logged

      GEICO

      Let it Snow Snowman

        Artist77's avatar - batman14

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        Posted: February 21, 2013, 5:28 pm - IP Logged

        I agree about that being a stupid comment.  I work in a large corp. where most people have more letters after their names than one can list...and I was at a big meeting a while back (the last time there was the superbig jackpot..maybe it was the 600 million plus one) and everyone was showing their lottery tickets...lol.

        J'aime La France.

          Jon D's avatar - calotterylogo
          Los Angeles, California
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          January 5, 2011
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          Posted: February 21, 2013, 5:53 pm - IP Logged

          Hi Gang:

          Warren Buffett refers to the lottery as the "stupid tax".

          In part, it's true.

          Nobody that plays the lottery wants to be considered stupid.

          I'm stupid because I like to play.

          But I'm also aware of reality, randomness and probability.

          The one thing almost every lottery player refuses to acknowledge.....let alone believe, is every system, formula, method or strategy starts at zero after every draw.

          In other words, every lottery draw starts fresh. There's no such thing as "hot" or "cold" numbers in the typical sense of the word. There may be numbers which have been drawn more frequently - recently. But that does not mean they will be drawn or ignored again in the future.

          If you had two super-computers runing side by side. One computer randomly selects a number. And one computer tries to guess what the number will be...even by running thousands of sophisticated, Defense Dept level lottery software programs, would rarely pick a winner.

          If you had a thousand horses lined up on a field for a race, and you had to pick three winners, it would be almost impossible, even with historical anaylsis, to pick 3. It's not a good illustration, but it might help paint a picture of randomness.

          Anyway......just posting my thoughts. Opposing views are welcome :)

          Calling the lottery a "stupid tax" is just an inflamatory statement meant to elicit some kind of reaction.

          But it is somewhat true: you could consider the lottery as legalized gambling with a 50% tax. For typical states, overall: 50% of revenue is paid back in prizes, 33% goes toward public benefit, and the remainder is overhead and retailer compensation. So if you play a *lot* of the lottery relative to your income, you might be stupid, knowing that this activity has a 50% tax. Or you could just have a lot of disposable income and don't care.

          But if you play responsibly, only what you can afford to lose, no problem. If you consider it just entertainment, well then compare it to what you would spend per week on golf, or eating out, or going to movies, clubs, sporting events, etc. So if you spend a similar amount on lottery, and are comfortable with that expenditure as your entertainment budget, fine. Plus, the lottery gives you the chance of winning money back or huge jackpots, unlike the other entertainment activities.(side betting aside...)

          As for the probabilities, I agree, don't kid yourself. The lottery has anywhere from 30% to 50% house edge on various games in gambling terms. I can and sometimes do go to a *real* casino and can play blackjack, baccarat or poker that has just a 1% house edge. So to think that you can come up with a system on lottery pick x games to overcome a 50% house edge, that to me is stupid. I'd rather play more on scratch games which have typically smaller 35% house edge and big jackpots, and also a few bucks here and there on other lottery games.

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            Kentucky
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            February 14, 2006
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            Posted: February 21, 2013, 9:10 pm - IP Logged

            Calling the lottery a "stupid tax" is just an inflamatory statement meant to elicit some kind of reaction.

            But it is somewhat true: you could consider the lottery as legalized gambling with a 50% tax. For typical states, overall: 50% of revenue is paid back in prizes, 33% goes toward public benefit, and the remainder is overhead and retailer compensation. So if you play a *lot* of the lottery relative to your income, you might be stupid, knowing that this activity has a 50% tax. Or you could just have a lot of disposable income and don't care.

            But if you play responsibly, only what you can afford to lose, no problem. If you consider it just entertainment, well then compare it to what you would spend per week on golf, or eating out, or going to movies, clubs, sporting events, etc. So if you spend a similar amount on lottery, and are comfortable with that expenditure as your entertainment budget, fine. Plus, the lottery gives you the chance of winning money back or huge jackpots, unlike the other entertainment activities.(side betting aside...)

            As for the probabilities, I agree, don't kid yourself. The lottery has anywhere from 30% to 50% house edge on various games in gambling terms. I can and sometimes do go to a *real* casino and can play blackjack, baccarat or poker that has just a 1% house edge. So to think that you can come up with a system on lottery pick x games to overcome a 50% house edge, that to me is stupid. I'd rather play more on scratch games which have typically smaller 35% house edge and big jackpots, and also a few bucks here and there on other lottery games.

            "But it is somewhat true: you could consider the lottery as legalized gambling with a 50% tax"

            The 50% "stupid tax" is only assessed on winning payoffs. If lottery winners are stupid, what do we call the losers?


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              Posted: February 22, 2013, 12:39 am - IP Logged

              "But it is somewhat true: you could consider the lottery as legalized gambling with a 50% tax"

              The 50% "stupid tax" is only assessed on winning payoffs. If lottery winners are stupid, what do we call the losers?

              Wrong!

              The tax assessed on winning payoffs depends on the tax bracket the winners find themselves in at tax time after they add their winnings to and subtract their losing ticket costs from their other earned income.  Very few [if any] people in the US pay 50% income tax.  Since you report so often that you "already know" so many things here, I'm amazed that you didn't know that.

              The 50% "stupid tax" refers to the fact that in nearly ALL state lotteries, only 50% of the gross ticket sales are returned as prizes to the winners.  You have to be pretty clueless not to see that this represents a 50% loss for all players, in aggregate.  To refer to this as a "tax" is not that much of a stretch for most people to grasp.

              --Jimmy4164

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                Posted: February 22, 2013, 2:54 pm - IP Logged

                Hi Jimmy4164:

                You said it better than I did. Thanks.

                The term "stupid tax" conjures up all kinds of things, including anger.

                And how often people play the lottery is irrelevant. It is a freewill tax every time you play.

                I don't agree with the assumption that "50% of all lottery proceeds are paid out in the form of prizes". This will be shown not to be the case most of the time. Everyone knows the lottery books are the easiest of all books to "cook".

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                  Kentucky
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                  Posted: February 22, 2013, 5:41 pm - IP Logged

                  Wrong!

                  The tax assessed on winning payoffs depends on the tax bracket the winners find themselves in at tax time after they add their winnings to and subtract their losing ticket costs from their other earned income.  Very few [if any] people in the US pay 50% income tax.  Since you report so often that you "already know" so many things here, I'm amazed that you didn't know that.

                  The 50% "stupid tax" refers to the fact that in nearly ALL state lotteries, only 50% of the gross ticket sales are returned as prizes to the winners.  You have to be pretty clueless not to see that this represents a 50% loss for all players, in aggregate.  To refer to this as a "tax" is not that much of a stretch for most people to grasp.

                  --Jimmy4164

                  "Could you please be more specific?"

                  I highlighted the portion of rdgrnr's remarks I agreed with and since there is no disagreement or debate, there is no reason to be more specific. Are you bored because not very many members respond to your posts and want me to debate why I agreed?

                  Are you planning on asking all the members who wish someone a "happy birthday" or "congrats to the winner" to be more specific?

                  "The tax assessed on winning payoffs depends on the tax bracket the winners"

                  The remarks I replied to weren't about Federal income taxes, but that didn't stop you from another boring off topic lecture about something I never said. And you still can't figure out why many members have you blocked, ignored, and/or don't respond to your posts? 

                  "The 50% "stupid tax" refers to the fact that in nearly ALL state lotteries, only 50% of the gross ticket sales are returned as prizes to the winners."

                  I'd like to see the actual figure showing that even close to 50% of all ticket sales are returned to winners in any state lottery. In the fiscal year ending June 2012, the PA lottery paid out 60.92% of their total sales in prizes, Texas paid 64.8% in prizes and Tennessee paid 67.2%.

                  "You have to be pretty clueless not to see that this represents a 50% loss for all players, in aggregate."

                  It's none of my business how much you or all the other players lose (or win). It's really simple, if I bet $3 on a Pick 3 straight number and win, they pay me $1800 and if I lose, I'm out 3 bucks. And believe it or not, the lottery will still pay me $1800 even it means an aggregate loss to the lottery on that drawing.

                  The Internet is really big and I'm sure somewhere, someone is out there who is interested in how 50,000 mythical pick-3 players purchasing a $1 straight QP in every one of the next 50,000 drawings will do. Good luck finding them!


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                    Posted: February 22, 2013, 6:00 pm - IP Logged

                    Calling the lottery a "stupid tax" is just an inflamatory statement meant to elicit some kind of reaction.

                    But it is somewhat true: you could consider the lottery as legalized gambling with a 50% tax. For typical states, overall: 50% of revenue is paid back in prizes, 33% goes toward public benefit, and the remainder is overhead and retailer compensation. So if you play a *lot* of the lottery relative to your income, you might be stupid, knowing that this activity has a 50% tax. Or you could just have a lot of disposable income and don't care.

                    But if you play responsibly, only what you can afford to lose, no problem. If you consider it just entertainment, well then compare it to what you would spend per week on golf, or eating out, or going to movies, clubs, sporting events, etc. So if you spend a similar amount on lottery, and are comfortable with that expenditure as your entertainment budget, fine. Plus, the lottery gives you the chance of winning money back or huge jackpots, unlike the other entertainment activities.(side betting aside...)

                    As for the probabilities, I agree, don't kid yourself. The lottery has anywhere from 30% to 50% house edge on various games in gambling terms. I can and sometimes do go to a *real* casino and can play blackjack, baccarat or poker that has just a 1% house edge. So to think that you can come up with a system on lottery pick x games to overcome a 50% house edge, that to me is stupid. I'd rather play more on scratch games which have typically smaller 35% house edge and big jackpots, and also a few bucks here and there on other lottery games.

                    So to think that you can come up with a system on lottery pick x games to overcome a 50% house edge, that to me is stupidMad. I'd rather play more on scratch games which have typically smaller 35% house edge and big jackpots, and also a few bucks here and there on other lottery games.

                    CrazyChair

                    Some people might call it genius.

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                      Columbia, SC
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                      November 21, 2012
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                      Posted: February 23, 2013, 12:35 pm - IP Logged

                      The stupid tax analogy should be only for those who are notated in another thread that play lotteries with their bill money..People like that give the rest of us a bad name, and trust me, there are so many of those who do this, although I do have to sympathize with some of them because I'm sure some could do this out of acts of desperation.....

                      "If you can DREAM it, you can DO it!"- Walt Disney