1160
Lotterule
(lemmy.world)
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.
That's insane. In Europe when you'd win 1 billion € you get 1 billion €, no taxes, no lump sum reward.
Its a moot point because you're never going to win the lottery.
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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.
That seems incredibly scammy to me. They're pretending the prize is double what it actually is and then claim even more of that back as taxes. If the actual prize money is only 20% of what you're advertising that's dishonest at best.
Where I am lottery winnings are tax-free and without an insane hidden 50% "claimed your winnings" fee. What they advertise is what you get if you win.
That seems incredibly scammy to me
Of course it does, it's the lottery
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On one hand, it does feel a bit scammy. On the other, I'm not gonna lose a lot of sleep if I only took home 50 million dollars from a 150 million jackpot. It's still a "Work? Sorry, I'm unfamiliar with peasant slang." amount of cash.
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The US doesn't advertise taxes included generally whereas other countries do. Americans don't expect tax to be included on any price or income advertised. There are people who say we should change that, but we're stuck in the 1800's in so many ways.
They should hold onto the lottery ticket and borrow against its value.
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!
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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.
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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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Best. Billionaire. Ever.
OH NO! Only $424M USD?! How will he get by?
I'm sure if I was the lottery winner I'd be salty in this scenario, but you only get half as a lump sum anyway, and having $1 billion taxed at roughly half is probably how it should be.
The thing that makes it painful is as OP said, all billionaires should be getting taxed like this, not just that one who can't exploit tax loopholes.
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this post was submitted on 30 Dec 2024
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