California says inequality is bad and also participates in Powerball?

by philg

From Governor French Laundry, 2022:

“In California, we recognize that our incredible diversity is the foundation for our state’s strength, growth and success – and that confronting inequality is not just a moral imperative, but an economic one,” said Governor Newsom.

It’s a moral imperative to reduce inequality. Therefore, anyone who increases inequality is evil (immoral).

From a government agency run by Governor Newsom:

Middle- and working-class Californians became poorer so that one Californian could become a billionaire. It is tough to think of a better-targeted method of increasing inequality. Why does California do this? Nothing requires the state to participate in Powerball or, indeed, run a lottery at all (Alabama, Utah, Alaska, Hawaii, and Nevada do not have government-run gambling (CNN)).

Florida runs a lottery, of course, and it funds college tuition scholarships for the academically inclined. But Governor DeSantis does not say that it is a moral imperative to reduce inequality. Ron D. might be the terrible person that NYT and CNN say he is, but he isn’t a hypocrite on this issue.

Loosely related… a tax question… California exempts winners of its government-run lottery from paying the 13.3% state income tax (calculation for each state). What if the payout chosen is annual, though, and the winner moves? If he/she/ze/they doesn’t move to a tax-free state (e.g., NV, FL, TX) does he/she/ze/they have to pay the new state of residence’s income tax on the payouts? Suppose the winner had lived in Maskachusetts and bought the ticket in Maskachusetts. If he/she/ze/they moved to Florida after winning, would he/she/ze/they have had to continue to pay MA state income tax every year? I’m guessing the answer is “yes” because the money is actually coming from a Massachusetts state government agency so it is obtained in Massachusetts. (It still might make sense to move, however, because investment income on the newfound wealth would then be tax-free. See Effect on children’s wealth when parents move to Florida for an example, noting that it doesn’t include the new 9% income tax rate for successful people in MA.)

(On reflection, the tax policy is interesting. California does not tax people who enjoy taxpayer-funded housing, health care, food, smartphone, and home broadband. California does not tax people who collect child support or alimony. California does not tax people who decide to buy a lottery ticket instead of their daily cigarettes and marijuana. If a person chooses to work and/or invest, however, he/she/ze/they will be taxed.)

10 thoughts on “California says inequality is bad and also participates in Powerball?”

  1. It was originally a way to fund the teacher pension fund, back when $30 million was a big jackpot, 5 years ago. Apparently the program only sells more tickets by increasing the odds & increasing the prize. Typical for Calif*, they all vote for equality but personally want the biggest jackpot.

    • @Jim, any politician, who spits words out of his/her mouth for the sake of getting elected, is fair game to be ridiculed.

    • @Jim, of course. However, MSM does not ridicule all politicians equally. We have seen this over and over from major MSM’s such as NPR, CNN, NBC, NYT, and the list goes on.

    • Jim has never managed to articulate why it is “worse than nonsense” to ask why someone who is passionate about eliminating inequality also runs a lottery that makes some people, but not others, billionaires.

    • The latest example of how the media is biased is playing out right in front of us.

      NYC — “NYC mayor warns away migrants with ‘No Vacancy’ fliers” [1]
      Texas — “‘See you in court’: Abbott responds to DOJ border lawsuit warning” [2]

      There is literally no coverage of NYC story, not even much from the White House, on how to help the mayor and the immigrants. However, the Texas story is all over the news multiple times a day. Both of those news are crises, and both impact immigrants and those around them.

      [1] https://www.politico.com/news/2023/07/19/new-york-city-has-run-out-of-room-for-migrants-for-real-this-time-00107107
      [2] https://www.politico.com/news/2023/07/21/abbott-doj-border-lawsuit-warning-00107650

    • “Jim has never managed to articulate why it is “worse than nonsense” to ask why someone who is passionate about eliminating inequality also runs a lottery that makes some people, but not others, billionaires.”

      Because one has nothing to do with the other. No one is forced to play. Is buying stocks…which is a huge source of gambling…a cause of inequality? Why should anyone be allowed to buy them if it is. How about bingo night at the church…is that next on your list of inane comparisons?

      Is there no inequality of the same nature in homophobic, book banning Florida? https://www.tampabay.com/opinion/editorials/editorial-florida-lottery-targets-poor-residents/2290223/ or does it promote racism. https://flaglerlive.com/florida-lottery-racism/

      Shocking!

    • Jim, but Florida is run by second – worst after DJT menace of most equitable multi-billionaires good chunk of whom are California based and not by the most equitable governor of all the peoples like our dear leader in California. We do not expect much from Florida.
      From Florida we expect only non-equitable things like average high quality education for average child in spite of her/his average non-privileged background.

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