NEW: Rhode Island Second in Nation for Profiting from ‘Sin’
Monday, May 23, 2011
Rhode Island is second only to Nevada when it comes to profiting from sin, according to 24/7 Wall Street, an online journal for US and international equity fund investors. According to 24/7's analysis, Rhode Island derives nearly 9 percent of its revenue from one "sin" source: its lottery.
To identify the states that make the most money from sin, 24/7 Wall St. calculated the taxes and revenue each state makes from gambling, alcohol, tobacco and lotteries and compared the receipts against the total revenue for the state. The Tax Policy Center provided alcohol and tobacco tax receipts for 2008, the year for which data is most recent. The North American Association of State and Provincial Lotteries provided state lottery receipts. Revenue from taxes on gambling, as distinguished from lotteries, was obtained from The American Gaming Association.
Why Rhode Island placed so high
Despite being one of the smallest states, with one of the smallest revenues, as 24/7 pointed out, Rhode Island makes the seventeenth greatest amount among all states through its lottery. "Just under half of all the money the state makes through the taxes considered for this list, which constitute 8.66% of the state’s total revenue, comes from the lottery," according to 24/7. The state also made $114 million from tobacco taxes in 2008, which is a relatively large amount considering the size of the state’s population, said 24/7. Rhode Island charges a tax of $3.46 for a pack of 20 cigarettes — the second highest amount in the country, behind New York. Each year, the average Rhode Islander pays $671 in sin tax. The only state in which residents pay a larger share is Delaware.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTRhode Island "highlights"
Second only to Nevada, which derives its greatest revenue (and no surprise) from gambling, Rhode Island beat out #3 Delaware (another lottery-driven state), #4 Indiana (gambling) and #5 South Dakota (lottery). Rhode Island racks up the following distinctions:
Most Profitable Sin: Lottery ($345 Million)
Revenue From Sin: $706 Million (22nd Highest)
Total State Revenue: $8.1 Billion (9th Lowest)
Pct. Total Revenue From Sin: 8.66%
For the entire ranking, go online, here.
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