Question

[abreu]

Microeconomics question for y'all

Many state governments have begun using lotteries to raise revenue. If we think of a lottery as a type of tax, is a lottery likely to be progressive or regressive? What data would you need to determine whether the burden of a lottery is progressive or regressive?

I answered this:
A lottery is likely to be a regressive tax. The data needed to determine whether the burden is progressive or regressive is what percentage of total income various income brackets spend on lottery tickets.

[IBC]

Regressive.

[Vegas]

Definitely regressive. State lotteries are horrible. They extract money from poor people disproportionately.

[Jiddy78]

Definitely regressive. State lotteries are horrible. They extract money from poor people disproportionately.


Voluntarily disproportionately.

[ryr8828]

State governments are now hooked on gambling revenues. The promise of "it will all go to education" has long been forgotten.

The money spent by consumers on gambling takes money away from other sectors of the local economies.

[Vegas]

Voluntarily disproportionately.

Mostly.

[Vegas]

State governments are now hooked on gambling revenues. The promise of "it will all go to education" has long been forgotten.

The money spent by consumers on gambling takes money away from other sectors of the local economies.

I still can't believe how awful state run lotteries are. 33-50% payout should be against the law. It is in Nevada.

[KinjaKahn]

Voluntarily disproportionately.
Voluntarily until it becomes a "disease".

[IBC]

We are all in agreement on this one Abreu.

[swordfish]

The lottery is simply an extra tax on stupid people.