Lotteries: They Prey on the Poor and Trash the Economy, and Political Leaders Don't Care

[xchrom]

http://www.alternet.org/hard-times-usa/disturbing-facts-about-state-lotteries-they-prey-poor-and-trash-economy-and-political



***SNIP

1. Legalized gambling is almost everywhere. Legalized gambling is available in every state except for Utah and Hawaii. This includes state lotteries, which are in 42 states, Puerto Rico and Washington DC. Lotteries were illegal for most of the 20th century, but that changed in 1964 when New Hampshire—a state without an income tax— reinstituted a state lottery. The first lotteries predate the American Revolution, but those mostly privately run efforts were so corrupt they were completely prohibited by every state in 1894.

2. They suck billions out of the economy. In 2009, $50.4 billon was spent on state lottery tickets and video kiosks. The government pocketed $17.9 billion of this total in 2010, which breaks down to 30 percent in profits and 8 percent in administrative costs, including advertising. The rest went to prizes and commissions to stores selling the tickets. Many corner stores could not remain open without the income from lottery sales.

3. They are a tax from anti-tax politicans. Tax-averse Democrats and Republicans have increasingly been relying on state lotteries to subsidize basic public programs like schools instead of raising taxes for that purpose. In 11 states—Delaware, West Virginia, Rhode Island, Oregon, South Dakota, Georgia, Michigan, Ohio, South Carolina, Texas and Washington—the lottery raised more per person than corporate income taxes. “The long-term shift in tax burdens from capital and corporations to individuals and their activities is perhaps best illustrated by the rise of state lotteries,” wrote tax expert David Cay Johnston, calling lotteries “the most heavily taxed consumer product in America.”

4. They hit the poorest the hardest. “Simply put, lotteries take the most from those who can least afford it,” wrote economist Richard Wolff. “Instead of taking those most able to pay (the principle of federal income tax in the U.S.), state leaders use lotteries to disguise a regressive tax that falls on the middle and even more on the poor.” A 2010 study found that households with take-home incomes of less than $13,000 spent on average $645 a year on lottery tickets, which is about 9 percent of their income. The reason people play lotteries varies, but it mixes hopes and dreams with desperation: poorer people see it as a slim chance to radically improve their standard of living.

[Laelth]

1. k&r for the truth, however depressing it may be. n/t

-Laelth

[sendero]

2. At least..

.... people have a choice as to whether they participate in a lottery or not. They do not have a choice about using their tax monies to pay for pointless counterproductive wars that are only waged to line the pockets of war profiteers.

They do not have a choice when their SS benefits are cut after decades of paying into the system. They do not have a choice about paying top dollar for mediocre-at-best health care. They do not have a choice when all of the minions of government operate in the interest of the rich and damn everyone else.

Hard for me to get excited about a lottery. Fact is, poor folks and those who wish to remain members of the nominal middle class had better learn to make better choices about what they do with their money.

[pipoman]

3. Without lotteries

there is still online gaming, tavern poker, backroom slots, sports wagering, etc. If gamblers wish to gamble I feel that the fixed odds of legal, state run gambling is better than all of the other options available during gambling prohibition. My mentor in the licensed detective business years ago, was (prior to becoming a licensed private detective) the lead enforcement officer for my state's attorney general in the 1960's and early 1970's. One of his primary responsibilities was investigating illegal gambling operations, and conducting raids of corner bars, mom and pop corner stores, country clubs, etc. The alternative to state controlled legalized gambling was prohibition, and I for one am not interested in going backward or putting any more people in jail than we already have..

Oh, and I have wondered how many of the poor who play the lottery are poor because they have a gambling addiction..which would not go away with the prohibition of state gambling..

[whistler162]

5. Why did you have to go and spoil a nice

diatribe with those nasty facts!

[pipoman]

6. Short memories is part of the human condition...

[kickysnana]

4. Truth is it is the only hope left but we never spend more than $3 a month on tickets.

And only a few times a year. That is our entertainment budget for the month.

I do spend a free hour or so a month here:

http://contests.about.com/od/sweepstakeslistings/tp/topdailysweeps.htm

[napoleon_in_rags]

7. This is government paid for by the poor. WA has this.

Some decent programs, but paid for by the poor. One of America's most regressive tax rates here.

One of the most shocking things is that it appears socialism by the poor for the poor could actually work, at least better than no socialism at all. If I could lower my taxes and cut the programs I wouodnt, and I pay a lot for a poorer guy.

Of course the problem is rich people sucking from the welfare teat, so poor don't get what they paid for. Its easy to imagine lottery funds meant for playgrounds being handed to some sweetheart construction company.

But the govt. as vicelord thing has been a long trend. Now WA sells us our weed, gambling and our drinking and smoking provides necessary funds. Hookers next ? It's a brave new world I tell you.