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View Diary: Lotteries Should be Funded with Wealth, Transaction, & Inheritance Taxes (49 comments)

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  •  To make a difference in the economy how much (3+ / 0-)
    Recommended by:
    Troubadour, slothlax, palantir

    money would we be taking from the rich and giving to the winners? How many winners per year?   Seems like you would have to take an awful lot of money and give it to an awful lot of people to make a difference in the economy.  

    •  I don't think it would take that much at all. (2+ / 0-)
      Recommended by:
      slothlax, cynndara

      At least divided over the entire base of people who would be paying this tax.  Let's throw out some arbitrary hypothetical numbers - and these are just guesses, so it can be structured any other way you want, so don't say any problems with these numbers invalidate the basic idea:

      Say 1 person per year gets $1 billion, 10 get $100 million, 100 get $10 million, 1,000 get $1 million, 10,000 get $100k, 100,000 get $10k, 1 million get $1k, and 10 million get $100.  Divide another billion among smaller prizes that a good third of the population would win at some point during the year.  That's $9 billion in total - not much in revenue terms, at least for a nationwide lottery (state prizes would be smaller).  And it's not like the money is just disappearing - most of it is going right back into the economy immediately.

      A 1 percentage point tax increase on the rich would more than cover it.  In fact, my numbers there are probably too conservative - maybe there should be more winners at the highest prize levels.

      Pour yourself into the future.

      by Troubadour on Tue Jan 29, 2013 at 08:10:37 PM PST

      [ Parent ]

    •  I would add that nothing would stop (1+ / 0-)
      Recommended by:

      a single person from winning the same prize multiple times in a year (if there are multiple drawings for it), so individual winners would have a broad spread of yearly award totals at the end of the year.  It wouldn't be a logarithmic spread like the overall prize categories.

      Pour yourself into the future.

      by Troubadour on Tue Jan 29, 2013 at 08:15:50 PM PST

      [ Parent ]

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