darn - didn't win the Powerball......

[akronee]

Regressive yes, but don't taxes have to be coercive?

[gsmittle]

Well, I'll be going to work tomorrow. If I won big I've always thought I'd continue to work. For two weeks or until somebody irritated me.

I have a BIL who insists that buying two tickets doubles his odds of winning, four doubles that, etc. As I understand it, two drops in the bucket are still just two drops in the bucket. To double your odds, don't you have to own half the possible tickets?

g.

[phrog]

As I understand it, two drops in the bucket are still just two drops in the bucket.
g.

Those are awfully small drops in an awfully BIG bucket. g.

[cabinetman]

The lottery distributes a portion of funds to educational institutions (mostly in upper income regions).

Nov 4, 1986 By a two-to-one margin, Florida voters approve a constitutional amendment authorizing the state to operate a lottery for the purpose of generating additional funds for education.

That's how the bill got passed. That's not how the money gets dispersed. The money wasn't earmarked for educational institutions, or teachers salaries, or school supplies, but the bill that was voted on made it sound like it was. Instead it went into the general fund.

Every week there are news stories about deficient schools, and those needing upgrading. Reports of student accident rates due to having to leave school grounds lunchtime because of inadequate cafeterias. Reports of shortages of school books and supplies. Reports of teacher layoff's due to budget cuts.

What further is disturbing is when these reports are aired, there's no mention whatsoever about the lottery money.

.

[phrog]

Are you kidding me!!!!!

.

Okay, C'man, when are you going to own up to that $100 you promised each of us.

[phrog]

Nov 4, 1986 By a two-to-one margin, Florida voters approve a constitutional amendment authorizing the state to operate a lottery for the purpose of generating additional funds for education.

That's how the bill got passed. That's not how the money gets dispersed. The money wasn't earmarked for educational institutions, or teachers salaries, or school supplies, but the bill that was voted on made it sound like it was. Instead it went into the general fund.

Every week there are news stories about deficient schools, and those needing upgrading. Reports of student accident rates due to having to leave school grounds lunchtime because of inadequate cafeterias. Reports of shortages of school books and supplies. Reports of teacher layoff's due to budget cuts.

What further is disturbing is when these reports are aired, there's no mention whatsoever about the lottery money.

.

And so it goes, on and on. Duped by the polliticians again. Not to be disrespectful to you (but to the politicians), but what's new?

[Pappy]

That was the way the lottery got approved here in Texas. The lottery funds public education. About 1%! The rest comes from property taxes...

On the up side, by a state constitutional amendment the only way the legislature can pass a state income tax is if 100% goes to public education and replaces the school property tax.

[radhak]

I'm a rational man with nary a superstition, and buy lottery irregularly, but each time I buy a ticket, I start planning for each dollar I might win from it ! Somehow that thrill is a good enough high for me to justify the spend of a couple of dollars.

That said, I'd consider any return at or above my purchase price to be good enough for me - ie, if I buy two tickets for $4 and and one of them has just the powerball number matching, getting me $4 back, I'd be happy. So I have no clue what the dickens y'all are talking about when you say it's "not worth it" .

Full disclosure - I must have bought about 75 lottery tickets in the past 7 years, and have not once - not even once - won any money at all! The statistician in me accepts it, but the lottery player in me believes that's because the big one is just around the corner!

Btw, I buy my tickets at the local Publix (a large grocery store). All this time my wife has mocked me, in particular pointing out that past winners have mostly come from 7-elevens, gas stations or nondescript mom-n-pop stores. This time, when they first announced that the winning ticket was from Florida, and was bought at a Publix, I saw her visibly flinch, before they added 'Zephyrhills' (which is 4 hours away). I don't know if felt more sorry for her or for myself .

[LinuxRandal]

I think that was the way the lottery was passed in most states. I know it passed here, to fund education, but since people have problems with math problems in word formats, they missed the fact it didn't say "in addition to" the normal money. So the normal money went back into the general fund, and they did exactly what they had advertised (giving it to schools), while continuing to keep enough disenchanted voters for changes.

I wish I could figure out where I read it, but I once read, that you have higher odds of finding a lottery ticket on the ground (prior to), then buying a winning one. I know how to dream without spending the money, and know what would come out of the woodwork if I did win. I would MUCH MUCH MUCH rather win a smaller, million dollar prize then anything that big. (even then spreading it out over 20 years would be safer, in my case)
But getting the lottery up there, it grows quick, at $2 a pop, when people start falling for the "dream", when it does, and you get the urge, you should start reading some of the stories of the mega winners, and how their lives were screwed up. It might help bring you back to reality.

[dbhost]

While it is fun to dream, the likelyhood of actually winning a large lottery jackpot is infinitely small, and the worst part is trying to keep your identity a secret if you did win. I don't know about you guys, but the last thing I would want is certain long lost (for a reason) relatives finding out I had more than two nickles to rub together...

[twistsol]

We buy twenty tickets every time we buy a new house. We've had to sign the mortgage paperwork every single time

[RAFlorida]

What does he want?

Seems like every time there's a large power ball winning, people come out of the wood work with schemes...

http://www.myfoxtampabay.com/story/2...orry-try-again

[vaking]

Alex, actually the costs of tickets are tax deductable if you have winnings to deduct them from. So most people don't have winnings and don't deduct them, but those who win win so big its not worth deducting.
And the tax rate is not 50%, its like 30% max on personal income.

The cash value option takes out the 20 year thing, but the cash value option pays only about $350 million as opposed to the annuitized 600 million figure.

So assuming you only costs for a winning ticket is $2 then the rate of return before taxes is 175 million to one, same as the odds of winning.

So yes that the bare bones rational point that DD was alluding to. By the time you factor in taxes and the gas it took to go and buy the ticket and the time, its not worth it we really need more than a $600 million powerball jackpot.

There's no rational reason at all for someone to buy into the new jackpot... a $2 ticket will win you $25 million cash value for the 175 million to one chance.

I actually agree with the critics who say that lotteries are a regressive tax on the poor - who can least afford it. Thats a social issue and not a political one at this point so i'd better stop right here.

Loring,
If you are lucky enough to win big in a lottery - that win immediately puts you in highest tax bracket. The highest federal tax rate in 2013 is 39.6%. Lottery is also subject to state and local taxes. State tax rate varies by state, the top rate is in California and it is 12.3%. That means that if you win big and live in California - your total tax rate is over 50%.
I agree completely with your overall conclusion - never gamble against the government. As for lottery being regressive tax - I don't think really rich people play lottery.

[LCHIEN]

Loring,
If you are lucky enough to win big in a lottery - that win immediately puts you in highest tax bracket. The highest federal tax rate in 2013 is 39.6%. Lottery is also subject to state and local taxes. State tax rate varies by state, the top rate is in California and it is 12.3%. That means that if you win big and live in California - your total tax rate is over 50%.
I agree completely with your overall conclusion - never gamble against the government. As for lottery being regressive tax - I don't think really rich people play lottery.

I meant to say it was 30-something percent, I've never had to worry about that bracket. And I live in a no state tax state.
Heaven save california from the californians.