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I think OP is saying the money used to buy the tickets is taxed, then the payout is taxed again (at a higher rate). Not that the lottery itself is a tax.
by jqm 11y ago
I think OP is saying the money used to buy the tickets is taxed, then the payout is taxed again (at a higher rate). Not that the lottery itself is a tax.
- morganvachon 11y agoNot defending the double taxation, but I just wanted to point out that it's not limited to the lottery. We are taxed on what we earn (multiple times even: State taxes, Federal taxes, FICA, and municipal income tax in some places). Then we are taxed on what we spend (sales tax). Sometimes the state gets to tax the same transaction twice or more; if I sell a car to another person, I pay income tax on what I get, and she must also pay title tax, which here in Georgia is 6.5% of the value of the car. If I buy a car from a dealership, I pay sales tax as well as title tax. Pretty much all tax systems are double-dipping, corrupt cesspools. But what's the alternative?