Lawmaker wants Washington to get its cut of lottery winnings
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SEATTLE -- Mega Millions fever is sweeping the nation, and the state where the winning ticket is sold stands to gain millions of dollars in taxes.
That is, unless the ticket is sold in one of the few states -- like Washington -- that don't have an income tax.
While most lottery players daydream about how they would spend a half billion dollars, some local politicians argue that Washington won't see a real jackpot until lawmakers implement an income tax.
State Rep. Chris Reykdal, D-Tumwater, is one of two legislators who sponsored a bill this year that would implement a one percent income tax.
Without that tax, Reykdal said the state would lose out on its share of the prize if the Mega Millions winner comes from Washington.
Assuming a Washingtonian wins the big $540 million jackpot and takes a payout of $270 million, Reykdal said the state would be losing $2.7 million in income tax.
"That's 500 kids receiving education in our system," he said. "Obviously, there aren't big payouts like this very often, but it's an example of how the state doesn't keep up with other states."
Not everyone agrees with Reykdal's vision, and many lottery players say they pay enough taxes already.
"I wish there was some way I could claim an exempt for something," said Lorraine Weeks. "Being poor for forever you should be able to have it all."
Reykdal's bill hasn't moved through the House or the Senate, but the current budget calls for a study analyzing what an income tax would mean in Washington.
That is, unless the ticket is sold in one of the few states -- like Washington -- that don't have an income tax.
While most lottery players daydream about how they would spend a half billion dollars, some local politicians argue that Washington won't see a real jackpot until lawmakers implement an income tax.
State Rep. Chris Reykdal, D-Tumwater, is one of two legislators who sponsored a bill this year that would implement a one percent income tax.
Without that tax, Reykdal said the state would lose out on its share of the prize if the Mega Millions winner comes from Washington.
Assuming a Washingtonian wins the big $540 million jackpot and takes a payout of $270 million, Reykdal said the state would be losing $2.7 million in income tax.
"That's 500 kids receiving education in our system," he said. "Obviously, there aren't big payouts like this very often, but it's an example of how the state doesn't keep up with other states."
Not everyone agrees with Reykdal's vision, and many lottery players say they pay enough taxes already.
"I wish there was some way I could claim an exempt for something," said Lorraine Weeks. "Being poor for forever you should be able to have it all."
Reykdal's bill hasn't moved through the House or the Senate, but the current budget calls for a study analyzing what an income tax would mean in Washington.
