Time For A National Lottery: A Proposal To Fight The National Debt

I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared. (Thomas Jefferson)

It’s tax time again. And once again I tell whoever who will listen about my idea (surely not original) to help reduce the National Debt. A National Lottery. The U.S. gross National Public Debt stands at close to $9 Trillion. Annual interest on our public debt is over $300 billion. I say it’s time for a National Lottery. Use the proceeds to help reduce the National Debt or for other national needs (deficits). Run it like a conventional lottery or maybe something like this:

When an individual files a tax return there is a little checkbox for the National Lottery reading “Check here to contribute $10 (or $100) to the US National Lottery”. Since it’s tax time, what’s 10 bucks either way. A small sacrifice. The winning number chosen is a social security number. Select one or more numbers, depending on how many you want to share the winnings. And make the pay-out “Tax Free“. (The SSN should be kept confidential for security reasons and maybe the winners contacted privately to avoid the publicity.)

I first suggested the National Lottery to Jimmy Carter…. the guy I used to work with in the Post Office. Just kidding, I wrote President Carter about the idea. I got a nice letter back from Jimmy saying he appreciated my patriotism and he’d get back to me. Things happened and Jim left office and alas, no national lottery. (I think I also sent it to Mario Cuomo when he was Governor of New York. I figured…Italian American, lawyer, New Yorker…heck, just like me. But Mario never wrote back.)

Lotteries are considered gambling and this prevents the US Government from sponsoring a national lottery. Maybe we ought to make an exception for our 230 year old Uncle Sam, so he can pay his (our) bills.

My apologies, dear readers, for bending your blog ear for my tired idea… but it’s tax time again.

Further Reading:

National Public Debt FAQ.
UK National Lottery (lump sum, tax free payment. 13 years old)

Technorati Tags: National Lottery, Public Debt, Sellsius

sellsius

It is strictly voluntary ekrated. A portion of our income tax money goes toward paying the national debt. If a lottery could raise money to reduce the national debt, taxes could be lowered or the savings used for social programs, like health care, education, etc.
Each state has a lottery, why not the federal goverenment? It's just a thought to save future generations from picking up our tab.

ekzrated

Sellsius. I am not really I understanding what benefit this would bring to anybody. The general population already has enough useless things to waste their money on, and something like a lottery is no better. And a lottery for the rich only? I'm looking for sarcasm there...

sellsius

Thanks for you thoughtful comment Doug. It made me wonder.

The public debt and income taxes/ redeeming social value:

I believe I read somewhere that 50-60% of our income taxes go toward paying the public debt. Would the lowering or elimination of the public debt lower income taxes or allow the tax money to go to social programs/education/health services, etc--for the poor-- instead of interest on the debt? Maybe the NL proceeeds could help fund social security (is that at all at risk?) Do all lotteries lack any redeeming social value?

A tax on the poor: Play or else?

Yes, I agree that poor people play lotteries in hope (as does the middle class) but they will play them nonetheless. I've heard the argument that lotteries are a "tax on poor people" and it sounds like an appealing argument (such a strong buzzword)... but when I stop to think about it, I don't agree it is a "tax" because it is voluntary to play. Taxes are a forced payment, don't you think? The failure to pay taxes has consequences but not the failure to play Lotto.

Saving the poor from themselves:

If you tried to outlaw lotteries to save poor people from paying for false hope, I suspect the poor might be the most vocal in objecting. Or might they resort to illegal forms (numbers, etc.).

Perhaps we can think of a lottery for the rich only----$10,000 a ticket? Hmm.... I wonder.

Douglas Karr

The lottery is simply a tax for poor people. Add a national lottery and you'll only be pulling more money from the people that need it most because you raise their hopes with a lottery that they have virtually no chance to win.

People have this unrealistic expectation that 'national debt' will somehow bankrupt the country, 'spend' our children's inheritance, etc. All of this is a myth perpetuated by politicians. As long as the economy continues to grow, the national debt is simply just a 'debt'. The numbers make it sound like it's some horrific, out of control, situation. Reality is that it has virtually no impact on Americans.

If there were a true economic crisis due to national debt, we could impose a line-item veto, cut international aid, and bring our military home. Trust me, there's plenty of money out there - no need to drain the pockets of those who need it most with a national lottery.

Respectfully,
Doug

Sellsius real estate marketing blog

Time For A National Lottery: A Proposal To Fight The National Debt