I think GP meant instead of paying zero taxes on the $1 ticket right now, collect $0,1 of the ticket as tax that goes into the federal budget. Now the (smaller)

I think GP meant instead of paying zero taxes on the $1 ticket right now, collect $0,1 of the ticket as tax that goes into the federal budget. Now the (smaller) winnings could be tax free while the federal income would stay about the same.