| As it stands today, the federal government in | | | | help things like non-profit companies, charities, |
| Canada does not tax lottery winnings. But the | | | | provincial hospitals, sports, and cultural activities, |
| government is constantly looking for new revenue | | | | the very types of things that taxes would help |
| and new taxes are always a possibility. Should | | | | too. |
| they consider a lottery tax? | | | | On the other hand, people that want the |
| Many countries around the world tax lottery wins, | | | | government to tax lotteries might say things like |
| including the United States, Canada's closest | | | | if somebody wins a big lottery jackpot, he would |
| neighbor. In the U.S., not only does the federal | | | | be wealthier than he ever dreamed possible, even |
| government tax lottery winnings, but so do many | | | | if his winnings were taxed. For example, say |
| of the State governments. In fact, just recently, | | | | someone wins $20 million and it was taxed at, |
| New Hampshire introduced a new 90% tax; that's | | | | say, 30%. That would mean that, instead of $20 |
| in addition to the $30% levied by the federal | | | | million, he would receive an after-tax amount of |
| government. | | | | $14 million. He'd probably be just as happy with |
| The case could be made that the Canadian | | | | $14 million as he would with $20 million. |
| government should not tax lottery winnings | | | | There are good arguments for and against a |
| because lottery profits already benefit the | | | | lottery tax in Canada. But, in the end, it's really |
| community. That would be like double-taxation. | | | | the governments decision whether or not they |
| For example, lottery proceeds from OLG (Ontario | | | | would want to implement such a tax. |
| Lottery and Gaming Corporation), directly goes to | | | | |