Question

States are increasingly relying on revenue from gambling to generate funds for their financial plans on annual basis. Lotteries, for example, have been on the rise with states providing their own jackpots, and increasing the jack-pots by utilizing multi-state games.   Please provide some of the policy rationale for using this revenue source, along with some of the issues that policy makers should focus on in the future.

Answer 1

Answer:

The 1st rationale of the policy is that demand for the gambling is in flexible or elastic in nature. Thus, on increments in the tax  on gambling activities ,just as expansions in the number of gambling schemes ,will produce more revenue. The subsequent rationale is that a limited amount from the people utilizing lotteries. Along these lines, the losses on a for every individual basis is distributed upon the mass. So this loss doesn't make harm when all is said in done to the people. Through , the Govt gets funds from gambling to actualize in budgetary or financial plans.

However, , it has issues likewise . The main issue is the nature of gambling that brings addiction among individuals . Accordingly ,it is harmful to the general public everywhere over the long haul . Further , the subsequent issue is Govt should focus upon fund collection by applying a tax on production activities. Here the tax deposits by the organizations are the identical representation of the development and advancement occurring in the economy . In this way, Govt should plan to increases the industrial just as agricultural activities that can expand the Gross Domestic Product(GDP) . It will likewise expands the revenue collection by the Govt utilizing tax rates. The third issue identified with the gambling is the promotion of the unavoidable or pervasive incentives that goes to the a few people ,yet takes funds from numerous individuals . Along these lines, such approach or policy is impeding to the general public or society over the long run.