Such a joke. While I personally believe everyone should pay their fair share… Winning lotto or winning at the casino ect, should not be taxed.
However if you use that money and make more money with it you should be properly taxed.
Or the winning amount should represent the money you get after tax just like in every other country.
I violently disagree with you.
Gambling and playing lottery is a method to take a risk and get essentially free money by doing nothing, other than taking the risk. Personally I think anything like this gambling related should be taxed up the wazoo. Definitely more than 50%. And that taxed amount should ideally go back to fund things like schools and stuff good for everyone.
Final note, if you ain’t happy with 400M free money, you cray cray.
In my country the lottery is taxed at the collection step, so the money divided and advertised is already after taxes. I think that makes more sense, you collect the money and the law specifically distributes this taxed money for specific budgets and the winnings advertised are the real one.
It’s even more insane when you realize that lottery tickets are basically double taxing, because you already pay the sales tax when you purchase the ticket so not only are you getting taxed on the purchase of the ticket but you’re also getting taxed on the winnings, so essentially they’re getting double the tax per ticket
The US effectively does both: the lotteries are run by the states and total prizes are much less than total ticket sales, generating net revenue for the state. Winnings are taxed like other income, meaning there are federal taxes and in many states state taxes.
The whole system gets even worse when you look at it. They prop it up as an “education lottery”, “This will help finance our schools!” In reality, they supplement education funding. I.E. they remove 2mil from state funding and put 2 mil in from the jackpot. They will continue lowering educational spending and use the assets in other areas they want.
When the lottery legislation was first written, it stated, “The net revenues generated by the lottery shall not supplant revenues already expended or projected to be expended for those public purposes, and lottery net revenues shall supplement rather than be used as substitute funds for the total amount of money allocated for those public purposes.” However, this sentence was removed right before voting, opening the door for legislators to use lottery revenues as a replacement for state funding.
The 2005 legislation stated lottery proceeds for education purposes would be allocated by the State Lottery Commission in the following manner: 50% for class-size reductions, 40% for school construction, and 10% for college scholarships. In 2013, lawmakers passed legislation giving themselves the power to allocate lottery proceeds for any education purposes, not just class-size reductions, school construction, and college scholarships.
In FY 2018, the majority of NC Education Lottery funding (57%) went to non-instructional support personnel, with 19% going to school construction, 12% to pre-kindergarten, 6% LEA transportation, 4% to need-based college scholarships, and 2% to UNC need-based aid. (link)
non-instructional support personnel, you know the over inflated administration that plagues education, now being supported by a lottery. Like most legislation, it started as something grand but slowly got mutilated till it’s a net-negative effect.
I’m in NC. The radio pundits during the runup to the General Assembly’s lottery vote were about the potential revenues being around $300 million. Further discussion was how that was the total budget for Forsyth County (Winston-Salem vicinity) schools. NC has 100 counties, some smaller, some larger, and for the GA to vote for it was viewed by the pundits as a really dumb thing.
The very thing of it becoming a replacement rather than a supplement to the school budgets was obvious to anyone who knows American (and especially NC) politics.
Lotterys are usually paid out in annuities where you would get that amount over a period of 10-30 years. However, they also give a lump sum amount which is usually ~half the stated amount and after taxes you could expect to receive 1/3 the stated amount.
Still, it’s generally best to take the lump sum unless you have very bad self control and would blow through the money.
Statistics show it’s literally best NOT to take the lump sum and that most people have no self control.
Give me the winning lottery ticket and I’ll show you how it’s supposed to be done.
most people have no self control.
Most people who gamble have no self control.
Interesting… The fact that they’re eligible to win the jackpot makes them statistically unable to handle it …
Feels similar to the Plato quote “those who seek power are unworthy of that power”.
As i said
unless you have very bad self control and would blow through the money.
Which is why you can work with a financial advisor and other wealth management strategies to set yourself up for success.
But yes, lots of people have lack of self control but if you’re going to throw around big words like statistics then show those receipts. And i mean actual studies not an article pulling numbers out of their ass.
Statistics is a “big word”?
No, but it has meaning. So claiming statistics without said statistics is just speaking out of your ass
it’s generally best to take the lump sum
Why? I would assume it’s the other way round.
The lump sum will grow to be worth more than the annuity over the same period if properly invested
if properly invested
Ah yes, the thing nobody is ever actually taught nor follows.
plenty of people do, they just don’t have 400 million to do it with
like my brother used the cheapo student loans here in sweden to just chuck a bunch of money into low-risk index funds (i think that’s the term) and he’s gotten 2000 bucks from that for basically 0 effort.
now imagine doing that with millions of dollars
80% taxes how does that work?
suddenly germany feels like a tax haven :D
It doesn’t. Just headline gore.
Lottery payouts typically have two options: lump sum at half the value of the winnings or a 30 year annuity at the full value. So this headline assumes lump sum reward and cuts the face value on that alone, then does a bunch of other hand waving to get you down the next 58%.
News journals that are owned/advertised by anti-tax republicans love to run out the “lottery was taxed too high” story, specifically targeting people who fancy themselves future lottery winners. It’s all bullshit.
It’s not taxes… well not all of it. The lotto advertises its prize as the sum total of a 30 year annuity. Currently Powerball has an estimated Jackpot of 163 Million. You can take the lump sum up front though. At present that lump sum is 73.9 million. After you get that, then you get taxed on it, reducing it to probably something like 40-50 million.
424 millions is still a mighty respectable amount
idk what’s worse. the punchline of this joke, with pre-existing elites not being taxed, or the fact that someone could look at recieving 420 million, and find an excuse to get mad about it
No one is mad about getting 420million. We’re mad that there are billionaires.
Why does he look like lil bow wow
