Why The Lottery Serves As A Regressive Tax On The Poor

 In Gambling

The Lottery, As A Regressive Tax

The lottery has been America’s largest game of chance, for some years now. American’s believe in the fact that the more they play, the closer they are to winning. The lottery has actively taken more money per U.S. household than: Sports Tickets, Books, Video Games, and Music combined. At this point – The lottery is a regressive tax that immobilizes the lowest class.

The lottery is some sort of financial beast, that unknowingly bankrupts our country. This ‘regressive tax on the poor’ is due to the mass amounts of people playing. This large sum of people, though, come from the lowest 20% of wealth. Also, the mass amounts of money being taken from people who barely even have it.

Why This Regressive Tax Serves Mainly The Poor

The following excerpt is from VisualCapitalist.com:

51% of each dollar goes to tax revenue: federal, state, and municipal.

18% goes to covering expenses, such as advertising or retailer commissions. This is the part that makes the process inefficient.

31% of each dollar actually goes to the prize money, and that basically sums up the terrible odds behind winning in the first place.

In other words, for every $3 spent on the New York Lottery, less than $1 is paid out to winners, while the other $2 is going to expenses and tax revenues. Here’s an info-graphic to better help you understand:

Regressive Tax from Lottery SquaresKing

Although playing the lottery is voluntary, the lottery ticket price inflation is not. It is said that the actual number of lottery players is less than you may have thought. Approximately 80% of the value the lottery generates comes from 20% of its’ players. A whole lot of this 20% are compulsive gamblers, and come from a low-income brackets.

According to the National Association of Provincial Lotteries, the lowest 20th percentile of the United States population, plays the lottery 12% more often than the 60th percentile and higher. It’s said that of the lowest 20th percentile of houses spend over $300 more dollars than on any other tax (Federal, Property, Sales, State & Local).

For those looking to fill their gambling needs, without going bankrupt, should look to playing Squares. Specifically, our game – Squares King. Squares King allows you to gamble daily, with reasonable outcomes. The way of the lottery is only for those who wish to throw their money away. Minor gambling games such as squares, or even blackjack yield a much larger profit, and higher level of enjoyment.

Stop getting scammed! Stop the lottery, start the Squares.

Download Squares King on iOS here, and Android here. Image credit: Pixabay.com

Recommended Posts
0
Translate »