Taxes: Winning Ticket

Two things set New Hampshire apart from other states in the way it raises revenue. It is the only state in the U.S. that neither has nor is contemplating a general sales or income tax. It is the only state that does have a legal lottery.

The New Hampshire sweepstakes this month is two years old. In that time, the state has grossed $10.5 million from the sweeps at $3 a ticket. After paying off winners (highest individual payment so far: $100,000) and covering operating expenses, it has distributed $5,255,000 among local school districts. The lottery has enabled New Hampshire...

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