After all, this is an election year. On November 3rd we'll have the opportunity to go to the polls and vote for a member of congress, and perhaps a governor or a senator. Thus, I'd like to talk about an issue that hits every one of us: taxes.
Revenue from the state's lotteries goes to fund education, roads, bridges, transportation, and the construction of new buildings. I'm talking about billions of dollars across the country every year. Just to pick one state as an example, California public schools have received more than $9.4 billion in lottery funds since 1985. If you take that revenue away, who will step up and fill the gap?
You.
The lottery is really a tax for anyone who chooses to play. Each year millions of dollars are being donated (last time I checked, the lottery is a voluntary activity) directly into your state's treasury. Without those donations, your taxes go up. See, the Bears will talk about what's wrong with the lottery. But they won't talk about the end result of eliminating it: higher taxes.
Everybody wants lower taxes, right? Of course they do! I've never been with a group of people where someone said, "I WISH I could figure out a way to pay more in taxes." Now, in this election year, who's going to lower your taxes? That's right, the lottery Bulls. Ask Edible and Parlay what will happen to your taxes if the lottery disappears.
Who's going to pay the higher taxes for education? You are.
Who's going to pay the higher taxes for roads and bridges? You are.
Who's going to pay the higher taxes for new state buildings? You are.
Of course, you WON'T be paying those higher taxes as long as your state has a lottery.
I'll make a lottery confession and hope the other writers follow suit: I've never played the lottery. Not once. Never. Why? Because it's a tax that I don't have to pay. That's why I'm bullish on the lottery. I love it because each year in my state, millions upon millions of tax dollars go to education and roads and buildings, and I don't pay one red cent.
You know how much money I've made on the Lottery? Nearly $17,000.
But wait a minute, Chris, I thought you just said you've never played the lottery.
That's right -- and by not playing the lottery, I've saved nearly $5000. I've been of legal lottery-playing age for 13 � years. If had bought a ticket every day of the year, that's $365. Thirteen and a half years times $365 is $4927.50. (13.5 * 365 = 4927.5) Suppose I take that money and put it in an index fund. The stock market, on average, returns 11% a year. Thirteen and a half years later I'm sitting on $16,922.
Forgive me if I've been confusing. I'll say it again. I'm bullish on the lottery because I never play it. I want to be in total control of my finances. I want to manage my own money. I don't want to pay high fees to a broker, and I want to be taxed as little as possible so I'll have more money to manage. Isn't that what being a Fool is all about?
This is an election year. The choices have never been more clear. One team is for keeping your taxes low. The other team wants to further their agenda and raise your taxes like liberal Democrats on a tax-and-spend binge.
Vote for lower taxes. Vote for the lottery Bulls.
This Week's Duel