MA: Mideast Contest Winnings Taxation Act (Statute)

[tmthforu94]

First, it'd be nice to know if there is a federal tax already implemented. In many RL states, there is a large federal tax, then a smaller state tax, if my memory serves me correct.

I can't remember it being taxed, and Marokai can't either. If it's not taxed on the federal level, which is a surprise, consider how left-leaning our Presidents and Senates have been, I'd tax the heck of it here at the state level.

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[tmthforu94]

Here's a little quote of what the taxes are in America:

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Additionally, there's a 5% witholding in Illinois, 3.4% in Indiana, 4.35% in Michigan, etc.

http://www.usamega.com/powerball-faq.asp

We're either going to have to implement taxes like this, or we're going to have to make some very deep, painful cuts if you really want to balance the budget. You can't have it both ways.

[tmthforu94]

I would assume contest winnings are currently taxed as personal income.

Does the region have a lottery?

I'll need to do some research in the wiki to find that out. Maybe someone who's been in Atlasia for a longer time knows more about that.

Actually, to my knowledge, no. I'm almost certain one hasn't been established since 2009, and having read through the statue a couple of times, I don't think it's there either.

[tmthforu94]

I ran into this a few years ago and as a result I owed my state government a total of 1 USD. I'm confident it also lowered what I would've gotten back from the federal government. Personally contest winnings shouldn't be touched unless its a government based lottery.

I actually agree - I didn't see the part on contest winnings and "other contests". That'd certainly be open to a lot of interpretation. I mainly want the tax for regional lottery.

[tmthforu94]

Is there a need for a regional lottery? And do you think the Mideast could really collect a lot of money ("a lot" means several billion dollars because that's the amount of money we need to reduce the budget deficit in a meaningful way) by establishing a lottery?

Well, in Indiana, I think a lot of the lottery money actually goes to education.

http://taxfoundation.org/blog/how-much-implicit-tax-revenue-did-lotteries-raise-fy2010

Here's a good thing on how much revenue is generated.  So yes, establishing the lottery would bring a lot - Here in America, I can assure you that there's plenty of folks who would buy a ticket every day, as I see it happen all the time!

[tmthforu94]

So if it is the intent of the members of this body to generate a lot of additional revenue from a regional lottery this bill has to be amended since it's mainly the sale of lottery tickets that has to be taxed.

I'm not sure I'm following you...put a tax on lottery tickets? I'm not sure that's how it works.

[tmthforu94]

Well, the link states that the money which the state generates by the sale of lottery tickets is an implicit tax similar to excise taxes. Thus, people who buy a lottery ticket are subject to a tax. In a bill which establishes a regional lottery we have to decide whether we want that. The question is: Should the state lottery merely be cost-covering or is it our intention to collect a lot of money by means of such an implicit excise tax?

...

That's not what I'm saying. Unless I have just a completely botched view of how the lottery system works, they collect money off the sale of lottery tickets, then by taxing the winnings. I don't think there's an added tax on lottery tickets - I think it's just like the sales tax.

I may have to settle this by going down to the gas station and buying a scratch-off.

[tmthforu94]

Exactly. A portion of the ticket price is essentially a sales tax - an "implicit lottery tax". That's what I'm saying.

Well, yeah, I guess you could say anything you buy from the government is kind of a tax, like stamps.

There's actually someone I know pretty well who's job has to do with the lottery up in Indy. I'll shoot him an e-mail tonight.

[tmthforu94]

"A part" can be open to a lot of interpretation, which is my only concern. Should we dedicate a certain % instead?

[tmthforu94]

I still remain skeptical that "a part" can be very loosely interpreted.