Question

a)Should we have state Income tax why or why not?

b) What is the tax benefit with lotteries should they be goverment run?

Answer 1

a) State income tax is the proportion of your income that goes into state fund as income tax. No person would like to pay double income tax, one to the federal government and another to state government. So, Government should collect either state or Federal income tax. And I prefer, state income tax as Per capita income of each state is different, so you can tax according to income of the state and its citizens.

b) Lotteries are illegal and therefore they are not part of GDP and people hide their income from Government and pay little tax on lotteries. If lotteries are made legal, then only the revenue is the highest.