Why Risk It?

Hey everybody! My name is Nate Hart-Andersen and I am the intern at JRLC for the summer. I have been working here for a few weeks now, and I am settling in for what should be an interesting, challenging, and fun summer here.

As the intern here, I have been asked to do some research to potentially create policy papers for the JRLC. The issues I have been assigned to research are Gambling and Tax Policy. These two issues appear unrelated, but I have found that there are some connections between them.

Unless you have been living under a rock, you know that Minnesota, like many other states, is experiencing financial difficulties. As the state looks for ways to balance the budget, new forms of revenue will also be important. The most obvious form of revenue for the state would come from new or increased taxes. However, this has proven to be an unpopular choice, and our Governor’s “no new taxes” policy has effectively prevented this method from being used.

This is where gambling enters the picture. Casinos seem to offer a lucrative source of revenue for the state, in the form of taxes on gambling facilities. Furthermore, casinos create jobs, and bring in tourists. However, casinos also come with heavy social costs. Some research indicates that casinos actually generate almost $2.00 in costs for every $1.00 in taxes paid to the government.

Legalizing gambling would also hurt tribal gaming, and important source of revenue for Native Americans who live within the borders of Minnesota. But with increased taxes seeming unlikely, and legalized gambling harmful, where else can we turn for revenue? Unfortunately the answer usually is that instead of looking for new sources of income, the state chooses to cut funding to programs that help disadvantaged Minnesotans.

What do you think? What is a good way to raise revenue so that we can continue to provide services to those who need it most? Is it possible to maintain our social services without increasing taxes?

Nate Hart-Andersen
JRLC Intern