Years ago, video poker was legal in South Carolina. And, it was heavily taxed.
Each video poker machine carried an expensive license that had to be renewed every two years. The profits from the machines meant extra income taxes paid by the operators. The winnings from the machine were also taxed. And money lost to a poker machine could not be claimed as a tax deduction.
But the mere morality of the machines bothered many. Gambling, in whatever form it takes, generally affects the lower income portion of society the greatest. These are the people who need a “get rich quick” chance in life, or so they believe. More financially secure people can invest in stocks or bonds, but those with little to invest often choose to “shoot for the jackpot.”
And there was the accusations that video poker money often was involved in the drug trafficking, or that people would steal in order to have more money to play video poker. No conclusive evidence exist to prove or disprove this. Drugs and thieves were around when video poker was legal; they are still around today, despite video poker being banned in the state.
The fact that the state created its own “education” lottery after banning the poker machines weakens the moral argument against the machines. But that’s another argument for another day.
And now state lawmakers are scrambling for money to balance the budget each year. The state’s slumping economy means less tax revenue. Smart lawmakers realize that often a tax increase doe not lead to increased tax revenue. Though the state would be gaining a larger percentage of income in the state, the tax increase could lead to an even worse economy, with less income to tax.
So lawmakers are forced to make drastic cuts in funding for programs, including education. The fact that a state that has an “education lottery” cannot properly fund its schools is a bit ironic.
So supporters of video poker are waiting in the wings, wearing “I told you so” grins. They know that they have a product that could shoot millions of dollars into the state coffers.
And, they point out, video poker is a “choice tax.” In other words, people who contribute to the state tax coffers through video poker choose to do so, and are not forced to give as they are through income or property taxes.
Many families have seen their economic outlook darken when someone become addicted to video poker machines.
The presence of the Education Lottery is a separate matter. Most studies agree that video poker is more addictive then scratch-off lottery games and weekly drawings of random numbers.
Also, opponents of video poker say that while the extra tax income would solve some short-term finance problems, it would not be worth the long-term repercussions that could cost society millions of dollars.
So how do you feel?
Go to www.theeasleyprogress.com to cast your vote. If you want to share a comment with our readers, email that to brobinson@theeasleyprogress.com




