<?xml version="1.0" encoding="UTF-8" standalone="yes"?><oembed><version><![CDATA[1.0]]></version><provider_name><![CDATA[The Dish]]></provider_name><provider_url><![CDATA[http://dish.andrewsullivan.com]]></provider_url><author_name><![CDATA[Andrew Sullivan]]></author_name><author_url><![CDATA[https://dish.andrewsullivan.com/author/sullydish/]]></author_url><title><![CDATA[The Lottery Tax]]></title><type><![CDATA[link]]></type><html><![CDATA[<p>Pat Garofalo <a href="http://www.usnews.com/opinion/blogs/pat-garofalo/2013/08/08/powerball-winners-announced-and-the-poor-lose?s_cid=rss:pat-garofalo:powerball-winners-announced-and-the-poor-lose">calls</a> lottery tickets &#8220;a tax on those who can least afford it&#8221;:</p>
<blockquote><p><a href="http://www.businessinsider.com/lottery-is-a-tax-on-the-poor-2012-4?op=1">Study after study</a> has shown that lottery tickets are disproportionately purchased by low-income, less-educated people, and that lottery purchases go up when the economy and the unemployment rate gets worse. (22 state lotteries <a href="http://www.nytimes.com/2008/09/13/us/13lottery.html?_r=3&amp;scp=2&amp;sq=Emily%20Haisley&amp;st=cse">set sales records</a> during the height of the Great Recession.)</p></blockquote>
<p>James Gibney <a href="http://www.bloomberg.com/news/2013-08-08/how-to-make-powerball-more-progressive.html">suggests</a> a solution to this problem:</p>
<blockquote><p>The research also shows, however, that the bigger the jackpot, the more affluent the ticket buyers.</p></blockquote>
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<blockquote><p>One 2004 <a href="http://faculty.chicagobooth.edu/emily.oster/papers/powerballnote.pdf" rel="external">study</a> by Emily Oster, now an economist at the University of Chicago, actually projected (with the usual academic caveats) a jackpot size at which Powerball becomes progressive: around $806 million.</p>
<p>Oster looked at buyers of Connecticut state lottery tickets by zip code and found that as the size of the jackpot grew, sales increased in richer areas: in fact, &#8220;at the highest jackpot levels the poorest 20% contribute only about 19% [of state sales] and the richest contribute close to 32%.&#8221; She suggested that &#8220;fewer games, with longer odds and higher jackpots, could allay some fears about regressivity.&#8221;</p></blockquote>
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