State government leaders are coping with widespread budget shortfalls triggered by rising foreclosures and falling home values — both of which erode property tax revenue and reduce state revenue — in a variety of ways.
But balanced budgets — which are legally mandated in most, if not all, states — are never easy to accomplish; they usually consist of some combination of higher taxes and controversial cuts in social services. Read more »
More states are turning to gambling casinos as a revenue source that can help fill looming budget gaps, a January 25 Washington Post article reports. There are proposals on the table in at least 14 states to create or expand existing casinos or slots, some in the same states that in past years fought hard to tighten restrictions on gambling.
So while government leaders are afraid to inflame voters by forcefully taking their money in the form of higher taxes, they apparently prefer a form of pain-free “taxation,” taking money from those who willingly lose it in a rigged system that takes money disproportionately from lower-income working families.
The top five percent of lottery players account for 51 percent of lottery sales, according to the Century Foundation, and this group is heavily weighted with low-income wage earners. In fact, lottery players with incomes below $10,000 spend six percent of their annual income on gambling, more than any other income group.
It’s a tough call that forces legislators to choose between cutting school funding or raising the sales tax, both hugely unpopular moves, and permitting an assortment of large, new development projects to move forward. While no one’s forced to visit a gambling casino if they don’t want to, historically, the states haven’t always welcomed casinos with open arms for a variety of other reasons.
You might say that the affluent build their wealth through investment growth, while those of lesser means play the lottery.
Is it fiscally responsible and acceptable for states to balance their budgets by using the revenue gained from gambling?
