Taking a Chance with a Remedy for Fiscal Failure: A Policy Analysis of State Lotteries
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Authors
Jarvis, Rebecca M.
Issue Date
1993
Type
Thesis
Language
en_US
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Abstract
Fame ... fortune ... "the stuff dreams are made of' ... state lotteries are often described as a fabulous opportunity to live the Cinderella dream, but beyond all the fun and fantasy state lotteries are a serious business. A state's objective in offering a lottery is not to hold a charitable giveaway or to provide an entertainment service.
Lotteries are structured with the primary goal of maximizing net revenue. Due to the manner in which state lotteries are promoted
and taxed they deserve special attention.
Today state lotteries represent one of the most widely and
conveniently available forms of commercial gambling available.
Critics often argue that within the context of standard tax analysis
lotteries exhibit many problems. Lotteries do not do well on the
revenue adequacy standard. Numerous studies have also
demonstrated that state lotteries are a regressive form of raising
revenue (29, p. 4). Beyond the tax analysis lie claims that there are
limits to lottery growth and that the revenue raised by state lotteries
is not really being spent on the programs for which it has been
designated.
Currently, public opinion is in favor of state lotteries. People
view them as a harmless way to avoid a tax hike. The full impact
and implications surrounding the state's promotion of gambling are
often overlooked when state's adopt the lottery as a method of
raising revenue.
Description
60 p.
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