Damn The Govt. Takes That Lottery Money Don't They?
 

Just saw one of the guys who won Powerball. He was holding up a check for over 148 MILLION DOLLARS.

Then the news guy said that after taxes he will have 53 million left.

Wow. The govt. is going to take almost 2/3 of the money. Wow.

that's a huge fucking chunk. 2/3 is insane.

I can't be 100% sure of this because it may be different depending on the state and the lottery, but many of those lotteries if you decide to take the lump payout they only give you half of the total and then tax that.

So if you won 200 million and wanted to take the lump one time payout you would only get 100 million before taxes.

That might be what happened here.

It's a ripoff no matter how you look at it. :(

Of course that guy (or you or me) would be happy as hell with 50 million dollars. But goddamn....2/3's of his money?

And it shouldn't matter if he wants it all at once (which is the way it should be). The govt. just finds a way to screw you no matter what. :(

Another shitty thing is that they don't tell you this up front when you buy the ticket. So you win 200 million and think you are getting 200 million then end up with 45 million. Still it is a ton of money, but its a ripoff.

Most states will pay you the full amount if you take the annual payments over 25 years. They probably force the lump payouts to take half because they don't want to come up with it all at once.

shouldnt they have it all before they hold a raffle to give it away?
lol

I know here you get it all..no tax. However you will pay tax going forward on income earned from the money of course.

If the guy decided to take a lump sum instead of installments then he's only getting half of the 148 mil at most. Aside from France, no government is stupid enough to think that taxation over 50% will work. Also, even if they did take 2/3 of the total in taxes, it's not like the guy worked for the money. He got lucky picking numbers at random. Lastly, it's the government's game which means they make the rules. No one forces you to play the state controlled lottery. If you don't like how much of a share they take (and tax revenue is why they have the game in the first place) go to Vegas and play at a craps table. You'll have better odds and free booze as well.

Are you fucking joking?

They point guns at the heads of anyone who would try to run a similar lottery on their turf.

Lottery AND gambling/poker winnings are tax free in Canada.

Used to be taxfree in Spain, now they sting you for 20%, but now if you keep receipts you can also claim back losses against winnings.

Welcome to the USSA

don't think you can pass the payout to your kids or whatever if you drop dead though...

Poor man's tax!

I am still confused on where the Lottery tax is going...

yep a rip off spent $2 on someone thing he thought he would never get and got 48 million.

yeah, that still isn't considered forcing people to play the lottery, but bravo for arguing like a 15 year old...


You going to bring up the nazis next?

Vegas does the same thing. A lot of progressive jackpots on slot machines are paid in 20 - 25 year installments.

Lottery payments in the US are based on 20 annuities, so if you want your money up front, you will get the principal that if left untouched for 20 years would amount to your lottery win less the taxes. Usually 20 to 30% taxes depending on your residency status and State where you won...

Correct. Originally you HAD to take the winnings over time. And most probably should.

Based on how this normally works out, the long term payout options is best.

it's a ripoff to have your free money taxed? wow.

53 million? What a ripoff. Not.

Pretty much this. If you take the lump sum, the payout is about 50% of the jackpot amount.

This must be a lie. The lowest common denominator keeps telling me that rich people don't pay taxes.
:1orglaugh:1orglaugh

That's because he's taking the lump sum payment.

$445 million divided by 3 winners = $148 million each, IF they chose to take the non-lump payment.

The lump sum was a total of $223 million.

Divide that by three winners (regardless of their payment option), the end result would be he gets $74.3 million cash or $148 over 20 years.

so getting $53 million after taxes REALLY isn't all that bad, so 29% take.

btw, each state has a % they take, NJ is 3%. PA is 0%!!! :1orglaugh
http://www.usamega.com/powerball-jackpot.asp

http://www.autoblog.com/2013/08/08/p...a-nsx-off-cra/

The guy from Minnesota is doing it right!

You can pass winnings to family if it's in a trust of some kind which the smart winners do (and remain anonymous). Not as normal inheritance though.

He looks like a really good guy. Good for him.

in my state ( texas ) lottery taxes go to the school system

:1orglaugh:1orglaugh:thumbsup

I imagine most of these powerball winners go to get some legal and tax advice before coming forward, and yet just about everyone always takes the lump sum. That means that their counsel is telling them to take the lump sum.

Why would they recommend that?

I would like to try to take a crack at an answer.

gimme gimme gimme gimme now now now now gimme gimme gimme gimme now now now now gimme gimme gimme gimme now now now now!!!!!1 asdasdfsdfjhgeuy~!!!!!!

:winkwink:

Everyone gets after new money, too new to know, too rich to care :)

In the UK wins are tax free, but I still wouldn't recommend it

During The Best Period Of Economic Growth In U.S. History There Was No Income Tax And No Fed

http://www.infowars.com/during-the-b...ax-and-no-fed/

My feeling would be:
1. You can't trust that the govt. will pay you your money over decades. Hell, they could go bankrupt. That's the first thought I would have.

2. I get in a car wreck and die tomorrow. So I never got to enjoy that money.

So the state lottery wins because of that. I mean heck...what if I'm 70 years old? I want my money NOW because I ain't gonna be around long enough for them to slowly give it to me at their leisure.

I think so. The state govt. that does the lottery already took their money off the top (and are supposed to use it for schools...not sure anybody really knows what they actually do with it lol)

Then millions of people buy their tickets and try their luck.

You make the win of a lifetime and only get 1/3 of what you thought you were getting.

Where is the rest of the money? The govt. has it.

Seems kinda shitty to me. And again...we were all told that the State Lottery was going to send massive amounts of money to the schools. When I lived in Fla. and South Carolina we were told that.

And still the schools were strapped financially. Despite property taxes, federal money, AND the state lottery they still barely had enough money to run. Makes you wonder where all that money is really going (probably "administrative" costs and salaries for bureaucrats)

There is a reason they say the lotto is the biggest tax on the poor.

With that kind of cash they can move to where they feel a better government is. I'm betting they'll all stay here, but I'm just putting it out there.

because unless you are a complete idiot you can make more by investing the $$ yourself... :2 cents:

If I won I'd be living in the Bahamas so fast it would make your head spin. Mansion right on the ocean, and wouldn't ever look back.

they should tax it right away and show real prize to players, this is not good!

It is income, it is going to be taxed as such. He can also write off his gambling expenses.

nothing new been like this for ages

its still free $$$ in the end

I think it depends on the state. In my state you can will the payouts to other people, but that may not be the case with other places.

I was a teenager when they finally passed the law that allowed a lottery in my state. They sold it as being something that would help the school because they would use the proceeds from the lottery to help fund the schools.

Now they run commercials that show what the lottery money is doing and it includes things like helping a dying business expand, training workers for new jobs and building some trail in the forest. A bunch of stuff that has nothing to do with schools. Meanwhile half the schools in my state can't get the voters to pass their budgets.

Yep, somehow bureaucrats and politicians always find a way to scam money.
Social Security, Schools, Infrastructure...the money never seems to really get there, but ends up in the pockets of politicians cronies everytime.

:2 cents::2 cents::2 cents:

dont forget lottery is already set up by government, they take a chunk out even before the winnings.
my guess they take a higher total % compared to your average slot machine.
however usually the money is spent on something worthwhile, like funding the federal police force :winkwink::winkwink::winkwink:

Let me tell you what I regularly see at local gas/connivence stores … An energy drink, slice of pizza or junk food charged on ebt card then cash spent on powerball or scratch-off tickets.

Fucking pitiful.

.

I can make this answer easy and simple for you

$148,000,000 taken over 25 years vs 53,000,000 taken today

http://investor.gov/tools/calculator...est-calculator

Plug in the $53,000,000

Then put in 4.5% interest paid out 12 times, or once a month. This is the approx payout of a fund such as FCAVX that pays you State and Federally tax free. Yes, NO TAXES ON THE INTEREST GAINED.

Now run that out 25 years and you get:
$162,908,353.99

This fund is ULTRA conservative. So ALWAYS take the lump sum. Stay ULTRA conservative and have approx $2.5 Million Tax Free Income per year and NEVER touch your principle.

And now you know why these people ALL takes the lump sum when being advised by some of the best lawyers and accountants on the planet.