Pay it backwards

Here - surely someone else needs this money more than I do

In a surprising display of recognition that they’re undeserving, folk taking in less than $13,000 a year hand back 9% of that sum to their government by buying lottery tickets. “I know this was never my money,” said Penelope Snodgrass of Greenwich, Connecticut,”so the least I can do is return some of it. What with food stamps, AFDC, Section 8 Housing and Medicaid, not to mention my welfare check, I started feeling a little guilty.”

8 Comments

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8 responses to “Pay it backwards

  1. Anonymous

    actualy a single person earning 13k per is not entitled to any of the welfare programs listed in the article.

    and that crap about” a tax on poor people” is a ridiculous statement.

  2. AJ

    Ah, I forgot US lotteries have a twenty year payout or a reduced lump sum payment, and are taxable. The twenty year payout makes it like an annuity, and I remember figuring it out at some point way back when, that it was like an annuity where you got the interest payments basically, and they kept the principle. Or you could take a greatly reduced lump sum. Now of course, with interest rates so low, it’s more like you get the interest and some of the principle, but let’s not forget the declining value of the dollar (compound interest in reverse) over twenty years (sorry sucker). And income tax averaging to take the bite out of windfalls is long gone. In Canada you get your winnings, however many millions they may be, in a completely tax free single lump sum payment, and that’s a horse of another color (unless of course, you’re American, and then you lose again).

  3. Anonymous

    even the mafia numbers games paid out higher winning percentages than the state programs. the states prosecuted the mafias and yet adopted their biz at a much lower rate of return. the statesshould have never gotten into the gambling biz even if the profits go back to state coffers. its immoral. however, the overhead cost of state sponsored gambling is huge, so that 35% skimmed off the top pays fixed cost as well as states profit. finally, one is not forced to buy a lottery ticket as one is forced to pay sales and or income tax. the argument is void of logic. And not for nothing but the author uses a tax on bread to make the ‘forced tax’ argument. as far as i know there is no retail tax on bread or food in any state.

  4. Anonymous

    ps. i concur with the mises author, that govts should not be in the lottery biz because their greed knows no bounds. depending on the payouts offered, the state lotteries, and state / federal taxes rake about 63% out of the recent mega money total prize pool.

    however, unlike paying income taxes, buying a lottery ticket is voluntary.

  5. pulled up in OG

    Seven states tax groceries at lower rates than other goods; they are Arkansas, Illinois, Missouri, Tennessee, Utah, Virginia, and West Virginia.

    Five states — Hawaii, Idaho, Kansas, Oklahoma, and South Dakota— tax groceries fully but offer credits or rebates offsetting some of the taxes paid on food by some portions of the population.

    Two states continue to apply their sales tax fully to food purchased for home consumption without providing any offsetting relief for low- and moderate-income families. They are Alabama (4%) and Mississippi (7%).

    Local governments, which in many states levy their own sales taxes, usually exempt food if food is fully exempt at the state level. Major exceptions include localities in Arizona, Colorado, Georgia, Louisiana, North Carolina, and South Carolina. Grocery food purchases in those states are fully or partially exempt at the state level, but typically taxed at the local level.

  6. pulled up in OG

    A vending machine company provides two vending machines to a business. One machine is for cold items and one machine keeps items hot. Only the cold items are eligible for the reduced tax rate. The hot items are subject to the regular tax rate.

    A vending machine company sells popcorn and soup in microwave pouches and containers. These items are sold at room temperature and are heated by the purchaser in a microwave provided in the vending area. These items are eligible for the reduced rate.

    A convenience store sells burritos from its freezer. The convenience store provides a microwave so the purchaser can heat food. The sale of the burrito is taxed at the reduced rate because it is a qualifying food item.

    A fast food restaurant sells cold salads and cold soft drinks. These cold items represent approximately 10% of total gross receipts. Because the restaurant’s total food sales of items prepared for immediate consumption are more than 80% of the total sales, the restaurant should charge the regular tax rate on all its food sales, including the cold salads and softdrinks.

    A convenience store sells prepared cold sub sandwiches, ice cream and cold drinks. The store also prepares and sells hot dogs and chili. All items are sold “to go”. The store should charge the reduced tax rate on the cold items, but should charge the regular tax rate on the hot items.

    A grocery store sells donuts in its bakery department. Even though these donuts may still be warm from baking, the donut sales are taxed at the reduced rate.

    http://dor.mo.gov/business/sales/foodtax.php

  7. Anonymous

    thanks pulled up. now back to the mises link. the mises author is writing in reference to Georgia, which does not have a sales tax on grocery food for home consumption. though he cites tax on bread, he is incorrect