Why The Lottery Serves As A Regressive Tax On The Poor
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:
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).
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