They should hold onto the lottery ticket and borrow against its value.
this post was submitted on 30 Dec 2024
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Instead of taking out the lump sum, you can have it paid in installments, they probably asked for lump sum, thus they get a much lower value.
Then you can do the math of whether or not it's worth it to receive monthly payment or taking out the lump sum, paying off all your debts, then putting it into S&P 500 and drawing down 4% a year and never run out of money.
At 400 million, that's what, 16 million a year? Never have to work again a day in their life, can spend 365 days a week in a 5- star hotel at a 1000-2000 dollar a night a 250 thousand car every year and haven't even spent 1/16 of his yearly liquidation.
Thanks for your comment. People keep forgetting that even a couple of million would be enough for you to never work a single day in your life and have a nice middle class life. 400m is just the equivalent of 200 "comfortable middle class lives, forever"
We don't forget that, the comments are pointing to the fact that any rich person that got 2 billion through investments would end up paying less, no one is saying that 400 millions are not enough.
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.
I think if they only advertised the post-tax number, there wouldn't really be a problem. Like, "hey, the jackpot is some amount, and after tax you could win 400 million"—that would be fine. As it is, they're kinda just building resentment for taxes in general by making your final winnings seem so disappointing, even though it's still 400 million.
It's always on the consumer to pay all taxes for some reason. Even with sales tax. I didn't make a sale why am I the one paying the tax?
Hey, now. We don’t want to charge business taxes! That’s anti-business! We’re anti- people in this country. Businesses are tax exempt because they’re the real citizens. Those gross, floppy pEoPlE are what we use to make money for businesses!
God, I hate sales tax. "This thing is $1.99? No it isn't."
But the amount is also variable as it's not a lump sum..
If you take lump sum and not the 30 year annuity, you take about a 50% hair cut off the prize money alone.
Hmm...
I mean, they could advertise the 30-year annuity as a separate number, then. There are still ways to make this work. I'm just saying, not framing taxes as if they were a punishment would make the whole thing much less annoying.
Not taxing the winnings at all, or just taxing them before they get into the pot, might be the easiest solution, I guess. My only contention with that is, well, now we're just edging into the fact that I don't really like lotteries. Certainly not on this scale.
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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.
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.
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Or the winning amount should represent the money you get after tax just like in every other country.
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424 millions is still a mighty respectable amount
Best. Billionaire. Ever.
I'm kind of surprised the USA taxes lottery winnings and I live in one of the heaviestly taxed countries. We don't tax lottery winning or other winnings from games of chance. Only winnings from games where some skill is involved (like poker I believe) is taxed.
They say the taxes generated are used strictly for education but they just cut the amount the lottery tax generates out of the budget and using it on tax breaks for the wealthy and still continue to pay teachers dog shit. This country is truly depraved in every way.
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.
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