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Mega Millions Equals Mega Tax?

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  • Description

    FBN's Liz MacDonald on states hoping to win the Mega Millions tax money to repair battered finances.

  • Duration 3:16
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T minus ten hours left for you to get your Mega Millions Lotto ticket for tonight's historic drying lines have been -- -- around convenience stores all over the country.

But -- clamoring to get their hands on tickets.

Even in Washington Wizards basketball player Chris Singleton tweeted he -- drop an -- yen now.

Ten grand on tickets -- seriously.

But is this 648 Mega Millions Lotto really a mega tax.

The benefits the State's more than the winners in terms of revenue pay -- what -- the look at it that supplement -- -- -- -- I hear that you bought tickets didn't you I -- you know by about five.

Clearly it is.

Why they are higher chance is getting struck by lightning or falling into a volcano.

In winning the lottery right one and 170 and I signed my -- -- And hello.

So here's a steel -- you know and they have been real debate among economists is whether or not you know this is really -- -- voluntary regressive tax on the poor.

If you scratch of the -- -- find out where the money actually go towards when the states get their hands on it.

You know 42 states have the take part in the mega million -- -- And is sure issue is is when they do with the money.

-- -- about 50% goes -- surprise another 20% goes towards operating and marketing and advertising for a lottery.

The rest goes toward state education plans for think progress -- things like -- you know.

The schools also for a senior citizens also for parks.

So though the question is where does that money go toward -- tell -- something the states have based a big budget gap this year of about a 103 billion.

Dollars estimated Americans spend about 56 billion dollars every year on the lottery.

Lot of that money goes to -- help in the states close their budget gap music to sheriff's quickly.

You know California is wanting to borrow against future lottery proceeds Arizona has tried to do this to -- I know you got to say I mean it is funny when you look at again the use of the funds.

But on the other side of those -- -- important -- private business you and I can't go and say hey we wanna do listen Cheryl Lotto will have that option.

Yea you know that's an important point -- and being in the city of Detroit for example which is on the verge of insolvency -- going bankrupt -- at its own city run lottery.

And even having a big fight with the state and trying to launch its own lottery to repair its tattered finances.

But again you know years ago -- a lottery was first launched they were supposed to be had there to help out education spending.

About three decades ago what you know you look at places like Illinois or Florida or California.

A fraction of -- -- it goes toward education spending package for.

No I just say Liz I mean the intention is -- and Nina mentioned for how they spend the funding is cut at the same time.

You know I mean look at the gambling site and that's unfortunately for you know people are walking him added -- -- -- -- -- of -- over the -- become -- every day and spent like 200 dollars in tickets every day yeah did you like -- -- No I haven't yet I don't know I don't -- I wanna get your birthday I'll play those numbers if I win I'm not giving any of the money.

And that's what you're playing for my birthday but I don't get any cash well.

That's all right -- -- -- dollar you're dead to me.

Liz MacDonald you go get go get your tickets -- am right now.

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