Should lottery playing and winning be free of taxes?Prev Topic Next Topic

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Lottery tickets and wins tax free?

YES

[ 27 ]

[ 81.8% ]

[ 6 ]

[ 18.2% ]

Total valid votes

[ 33 ]

Discarded votes

[ 2 ]

Sunglasses

Belgium
Member #173,925
March 26, 2016
1,396 Posts
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Jun 10, 2017, 9:23 am

...
MaximumMillions

Germany
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March 8, 2015
803 Posts
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Jun 10, 2017, 10:17 am

It absolutely should.

People buy their tickets with money that's been taxed at least once (income tax).

Than the lotteries keep 50% of wagers for charity or budget purposes, only pay out the other half to players, which winners have to pay taxes on receiving their winnings, and then have to pay taxes on capital gains and then have to pay taxes when they want to gift mor than 20k or their lifetime exclusion.

It's a miracle winners aren't in debt after the check cleared.
EdG1955

Marana AZ
United States
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August 3, 2013
275 Posts
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Jun 10, 2017, 6:20 pm

I'm not sure what you mean by tickets being tax free. Wins should definitely be. Of course, this would mean the gambling loss deduction for lottery tickets would have to be repealed.
BobP

Dump Water Florida
United States
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June 5, 2002
3,578 Posts
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Jun 10, 2017, 7:28 pm

Far more civilized to work the taxes into the ticket price then make the few big winners pay. The huge percentage winners must pay can only hurt sales once potential customers realize the prize is not really the prize as so much will be ripped away.

BobP
Coin Toss

Zeta Reticuli Star System
United States
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January 17, 2006
11,788 Posts
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Jun 10, 2017, 9:04 pm

Autralia- ticket price $1.03 AUS....the .03 pays the tax for the winner.

The playslips also have a NP option - No Publicity....

The U.S. could really learn from this.

Thanks for the info to savagegoose.

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.
Raven62

25

New Jersey
United States
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June 28, 2005
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Jun 10, 2017, 10:07 pm

Some Countries Don't Tax Lottery Winnings: ln North America (Canada)!

A mind once stretched by a new idea never returns to its original dimensions!

Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

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Kingofearth

Israel
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May 5, 2016
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Jun 11, 2017, 12:40 am

Quote: Originally posted by EdG1955 on Jun 10, 2017
I'm not sure what you mean by tickets being tax free. Wins should definitely be. Of course, this would mean the gambling loss deduction for lottery tickets would have to be repealed.

Tickets have a tax added to the cost of it so it slightly increases the price of the ticket, honestly a very smart and good idea in my opinion.
Toronto

United States
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November 29, 2012
419 Posts
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Jun 11, 2017, 4:10 am

The lotteries would see a big drop in sales if they lowered the jackpot to be 60% of what they currently advertise by implementing this at this point (you didn't think they'd just give people more money did you).
eddessaknight

LAS VEGAS
United States
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November 22, 2006
9,382 Posts
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Jun 11, 2017, 5:37 pm

Quote: Originally posted by Sunglasses on Jun 10, 2017
...

Absolutely Sunglasses, ABSOLUTELY

A once in a lifetime major experience, give the players a break!

Eddessa_Knight for Player's Light
Redd55

United States
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March 12, 2015
1,300 Posts
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Jun 11, 2017, 8:31 pm

Nope. It's income. Other people work hard for their income or invest and take a risk to earn income and they all pay taxes. Why shd income from a lottery be exempt? Sure some states waive it but they do so to encourage more sales of lottery tickets which they are dependent on. There is really no rational basis to waive federal taxes and it will never happen.
TheGameGrl

A long and winding road
United States
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June 10, 2005
6,680 Posts
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Jun 11, 2017, 10:05 pm

Quote: Originally posted by Redd55 on Jun 11, 2017
Nope. It's income. Other people work hard for their income or invest and take a risk to earn income and they all pay taxes. Why shd income from a lottery be exempt? Sure some states waive it but they do so to encourage more sales of lottery tickets which they are dependent on. There is really no rational basis to waive federal taxes and it will never happen.

Correct- taxes are an irrational way to justify a persons earned or unearned monies.

insurance claims (life) are not taxed.. Yet it's income. Unsure your logic holds weight that taxation is a given. I rarely give it willingly. I paid in already on my wages... So it's not the govt to take more. Will they reimburse me if I lose? I doubt it..

Count your smiles.
Sunglasses

Belgium
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March 26, 2016
1,396 Posts
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Jun 12, 2017, 10:04 am

Quote: Originally posted by BobP on Jun 10, 2017
Far more civilized to work the taxes into the ticket price then make the few big winners pay. The huge percentage winners must pay can only hurt sales once potential customers realize the prize is not really the prize as so much will be ripped away.

BobP

Add to the tax handicap that the payout is unfair, even when free of taxes and free of services.

On the top of that there is lotter and others probably, taking a rake of the money that people like to spend on playing.

I just don't want to compare gambling to drugs.
KY Floyd

NY
United States
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October 16, 2005
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Jun 12, 2017, 11:44 am

"People buy their tickets with money that's been taxed at least once (income tax)."

I'm sure this will come as a shock, but everything is bought with money that's been taxed.Unless you've cheated on your taxes or earned income that's tax-free for some reason. Do you think there shouldn't be sales tax on all that other stuff you buy with your already-taxed money? Or that the guy who cuts your lawn shouldn't pay income tax because he was paid with your already-taxed money. And what happens when the guy who cuts your tax wins the lottery with a ticket that he bought with money that wasn't taxed? There may be good arguments for not taxing lottery winnings, but that one is just plain stupid.

"Than the lotteries keep 50% of wagers "

That's a reasonable argument that the states shouldn't tax winnings in their own lottery, but only for state taxes on their own lottery. The federal government doesn't get a single penny from the billions that states collect on ticket sales, and your state doesn't get a penny if you buy a ticket in a different state.

"Far more civilized to work the taxes into the ticket price then make the few big winners pay."

Another stellar idea. In addition to all the money the losers lose, let's collect more tax from them so that the poor unfortunate player who just won a cash jackpot of $279 million in California won't have to pay taxes on it.
BobP

Dump Water Florida
United States
Member #380
June 5, 2002
3,578 Posts
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Jun 13, 2017, 10:01 pm

Quote: Originally posted by KY Floyd on Jun 12, 2017
"People buy their tickets with money that's been taxed at least once (income tax)."

I'm sure this will come as a shock, but everything is bought with money that's been taxed.Unless you've cheated on your taxes or earned income that's tax-free for some reason. Do you think there shouldn't be sales tax on all that other stuff you buy with your already-taxed money? Or that the guy who cuts your lawn shouldn't pay income tax because he was paid with your already-taxed money. And what happens when the guy who cuts your tax wins the lottery with a ticket that he bought with money that wasn't taxed? There may be good arguments for not taxing lottery winnings, but that one is just plain stupid.

"Than the lotteries keep 50% of wagers "

That's a reasonable argument that the states shouldn't tax winnings in their own lottery, but only for state taxes on their own lottery. The federal government doesn't get a single penny from the billions that states collect on ticket sales, and your state doesn't get a penny if you buy a ticket in a different state.

"Far more civilized to work the taxes into the ticket price then make the few big winners pay."

Another stellar idea. In addition to all the money the losers lose, let's collect more tax from them so that the poor unfortunate player who just won a cash jackpot of $279 million in California won't have to pay taxes on it.

Most jackpot winners don't win $279 million, they win $1-7 million and when the Government(s) strips away a third or more of that all the good people might have wanted to do with the full amount goes out the window. The small amount added to tickets in taxes hurts very little. Most people play picturing themselves the winner, why they so often vote against self interest to keep taxes low for the wealthy, it's what the people would want for themselves.

BobP

It's not what you want that makes you happy, it's being happy with what you have (insert qualifiers).
AlanHarvey

Houston
United States
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April 19, 2017
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Jun 13, 2017, 11:59 pm

I don't care how big or small the lotto jackpot is, I feel it should be tax free. I realize someone pointed out buying a ticket with after tax money and therefore lotto's should be tax free. I say it should be as well, like a Roth IRA is tax free when you begin disbursements. The investments are made with after tax money.
Also, in the UK the lotto winnings are free from income tax but other tax liabilities could arise.It's an interesting concept. I don't think having a tax tree status would make much difference on the amount of people who play the lottery or in the prize amounts. What are others opinions??? Do you think it would make a difference or not?

I missed winning the lotto by 6 numbers!

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