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=4.2.5 By: salestax http://blogs.reuters.com/david-cay-johnston/2011/07/15/u-s-lotteries-and-the-state-taxman/#comment-40 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.

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By: coyotle http://blogs.reuters.com/david-cay-johnston/2011/07/15/u-s-lotteries-and-the-state-taxman/#comment-38 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”?

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