Lotteries
A brief history.
The first historic traces of the lottery phenomenon was found by historians in China in archives from the Han Dynasty which ruled from 205 to 187 B.C. In more modern times, the first lotteries are played in Holland around 1434, in France under the rule of François the 1st in 1539, and in England under Queen Elizabeth I, in the year 1566.
Yet between 1600 and 1936, when the first official state sponsored lottery is played again in France, there are periods of complete bans, except for lotteries aimed at helping religious communities survive or the odd absolute monarch wanting to finance this or that war of expansion.
Lotteries were banned because common sense quickly soon taught players that the odds of winning were extraordinarily low. Lotteries soon received epitaphs the likes of “taxes for the daft” or “voluntary taxes” which survive to this very day.
The idea appeals to logic, as statistics tend to prove that the odds for winning are low indeed. Some states like Belgium promote their lottery with the underlying message that all gains are redistributed to good cause organizations or to promote culture and art. Players can therefore buy a ticket and play, knowing that if they lose, their money will go to charity or any other worthwhile entreprise serving a larger community.
Its a good incentive to play because it combines the desire to win a large sum of money and the need to give to charity.
Notwithstanding the extremely low chance of winning, never as before has so much money been spent on lotteries worldwide. Huge payouts lure millions of players almost daily into spending a small sum for a slim chance of reaping a substantial sum of money. Most states make it even more alluring by allowing the payout to go tax free.
Today, the worlds’ population spends billions each year to participate in some or other form of lottery and it has become a mainstream activity, a modern times phenomenon. Buying a lottery ticket has become a part of life. It is still the cheapest way to acquire alluring amounts of capital and sometimes more.
Indeed, what follows isn’t urban myth but reality. In places where the taxman leans heavily on hard working but well earning citizens, one can double the worth of an anonimous tax exempted winning lottery ticket by putting it up for sale. The buyer gains a substantial advantage by acquiring a tax exempt amount, which makes him able to explain the origin of wealth whilst the seller doubles his winnings.
It seems there is no limit to ingenuity when it comes to avoiding taxes.
