TENNESSE COULD LIMIT LOTTERY WINNINGS AT $ 600 FOR POOR
The Tennessee legislature has looked to make living difficult for those reeling under poverty. A committee hearing on Wednesday is likely to discuss a bill which would prevent anyone receiving federal or state assistance, usually called ‘welfare’ from winning $ 600 or excess in state lottery payments.
The legislature in Tennessee has considered a bill which would prohibit anyone receiving federal or state assistance from receiving more than $ 600 in state lottery. The main thinking involved behind the bill is that if someone fails to afford basic necessities and receives food stamps from federal government, then they need not spend money on anything like a lottery. On the other hand, people say that the government need not tell them how to spend their money.
The bill has not mentioned anything on preventing the unemployed from winning huge amounts in the lottery. It simply prevents people receiving public assistance from winning big - even while they have jobs.
Recent studies have concluded that the poor spend most percent of their income on lottery tickets than wealthier people. Portion of the draw is a last - ditch effort to get out of poverty, even if winning odds are extremely slim.
Preventing the indigent from receiving more than $ 600 may prevent more people from playing lottery, thereby bringing fewer revenues for states as they usually retain most of the money spent on the lottery.
The state fiscal review of Tennessee bill has revealed that the lottery sales may drop by 1,47,403 (2.37 % lesser players), if the law is passed. The total lottery ticket sales are expected to decrease by $ 23,972,100 in 2009 - 2010.
The state’s review has found that nearly fifty percent individuals who received food stamps from state purchase lottery tickets. Nearly half of them are expected to stop playing if the bill is passed. In case people stop playing, then Tennessee is slated to lose at least $ 6.4 million in grants and scholarships, which it provides each year from the proceeds.
However, for remaining 50 % of food stamp recipients (1,47,403 people) who continue to play lottery in spite of being prohibited from keeping $ 600 in winnings, the money would be taken by the state.
The Tennessee Education Lottery Corporation has reported that close to 11 % of the awarded prizes are for $ 600 or more. Hence, in case half the recipients of food stamps continue to play, and thus continue in donating the winnings to state, the school programs are expected to receive more than $ 1.3 million each year.
Till February, Tennessee has an unemployment rate of 9.1 % which leave 2,76,312 residents out of work. It is a population that is nearly equal to number of people in Tennessee which receive food stamps.
A legislator hopefully would not try to expand bill that prohibits large lottery winnings to those people who get state unemployment checks. Though remaining unemployed is difficult enough, remaining poor and unemployed is still worse.
Related posts:
- Getting More Cash From Your Lottery Winnings
- A Lumpy Deal When it Comes to Lottery Winnings
- TEN THOUSAND DOLLARS STILL IN WAIT FOR LOTTERY TICKET OWNER
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