COMMENTARY ON THE LOTTERY FROM ALCAP BOARD MEMBER DON WALLACE, CPA
We must call into question how much the lottery will siphon from the Education Trust Fund, etc. and tell Alabama Legislators NO.
For example, if I spend $100 on goods then $4 in Sales Tax Revenue goes to schools. If I now spend $25 of that money on a “get-rich-quick” lottery scheme, then only $3 goes to the Education Trust Fund.
Based on the Governors “lofty expectations” this would mean $12 million dollars in tax revenue diverted from the Education Trust Fund, as well as the lost revenue to local cities, counties, and local school tax revenues generated from the other 5-6% of sales tax that doesn’t go to the state.
EASILY, THE GOVERNOR’S PLAN DIVERTS AT LEAST $30 MILLION FROM
THE EDUCATION TRUST FUND AND LOCAL GOVERNMENT BUDGETS.
Speaking from client experience, the lottery hurts the small business as people stop spending money on such things as cokes, Gatorade and food and divert that to a lottery ticket where they make a much smaller margin.
From a personal, anecdotal perspective, we just went to Florida recently and all those stores in Florida right next to Florala have closed – so much for “lottery” business.
We also went to Orlando and it is amazing that from just south of Dothan to Orlando you can hardly see a lottery sign anywhere – BUT travel on one of the older thoroughfares going into downtown Orlando and you will see lottery advertisements targeted at the poor people who need to play the lottery the least.
Certified Public Accountant