Comments on: U.S. lotteries and the state taxman http://blogs.reuters.com/david-cay-johnston/2011/07/15/u-s-lotteries-and-the-state-taxman/ Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: salestax http://blogs.reuters.com/david-cay-johnston/2011/07/15/u-s-lotteries-and-the-state-taxman/#comment-40 salestax Tue, 19 Jul 2011 14:43:05 +0000 http://blogs.reuters.com/david-cay-johnston/?p=9#comment-40 38 percent is the take out rate. It is NOT the implicit tax rate. If you want to calculate the implicit excise tax rate for a particular lottery (or for all lotteries together), use this formula: n / (s - n) where n = net proceeds and s = total ticket sales (including vendor compensation). That will give a tax rate that is directly comparable to any sales or excise tax rate. You will discover that the rate is considerable higher than 38 percent. 38 percent is the take out rate. It is NOT the implicit tax rate. If you want to calculate the implicit excise tax rate for a particular lottery (or for all lotteries together), use this formula: n / (s – n) where n = net proceeds and s = total ticket sales (including vendor compensation). That will give a tax rate that is directly comparable to any sales or excise tax rate. You will discover that the rate is considerable higher than 38 percent.

]]> By: coyotle http://blogs.reuters.com/david-cay-johnston/2011/07/15/u-s-lotteries-and-the-state-taxman/#comment-38 coyotle Tue, 19 Jul 2011 03:33:53 +0000 http://blogs.reuters.com/david-cay-johnston/?p=9#comment-38 Then tell me Jay, why aren't we taxing gambling winnings from hedge funds. CDS' and CDOs are like insurance issued by a casino Black Jack dealer. Though none of this smells very pretty, "Is not a rose still a rose by any other name"? Then tell me Jay, why aren’t we taxing gambling winnings from hedge funds. CDS’ and CDOs are like insurance issued by a casino Black Jack dealer.

Though none of this smells very pretty, “Is not a rose still a rose by any other name”?

]]>