When I Win Powerball Tonight............

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Grandpa

Well-Known Member
Mar 2, 2014
9,724
53,642
Colorado
How much does Uncle Sam get to keep of the prize? Three hundred million?

Not just Uncle Sam.

For the Feds, the top income tax bracket is in the range of 39%. I don't see how the winner(s) can avoid that. It's not like they're going to have deductions to take them out of the earnings bracket for the first year.

Then you're looking at state taxes. Some states have none, and some states have up in the 8% bracket.

So let's go through this. The multi-states game offer a prize based on nominally half of the money that they've already gotten up-front.

If you take the annuity for the full amount, more or less, you'll get it over 20+ years - but the states have their money up-front, and they're parsing it out to you over a couple-plus decades.

If you take the cash prize, they discount that, because the "real" prize is the annuity, so you don't get the full amount.

Then no matter what you win, you're going to pay somewhere between 39% and 47% of that in federal and state taxes.

Honestly, the Mafia gave you better odds and conditions on numbers games.
 

Blake

Deleted User
Feb 18, 2013
4,191
17,479
Not just Uncle Sam.

For the Feds, the top income tax bracket is in the range of 39%. I don't see how the winner(s) can avoid that. It's not like they're going to have deductions to take them out of the earnings bracket for the first year.

Then you're looking at state taxes. Some states have none, and some states have up in the 8% bracket.

So let's go through this. The multi-states game offer a prize based on nominally half of the money that they've already gotten up-front.

If you take the annuity for the full amount, more or less, you'll get it over 20+ years - but the states have their money up-front, and they're parsing it out to you over a couple-plus decades.

If you take the cash prize, they discount that, because the "real" prize is the annuity, so you don't get the full amount.

Then no matter what you win, you're going to pay somewhere between 39% and 47% of that in federal and state taxes.

Honestly, the Mafia gave you better odds and conditions on numbers games.
I thought America was a low taxing country that supports the free-enterprise spirit. The top income tax bracket is 39% for the Feds? So, if you add the States, you in America most probably pay more tax than here and some say this country is a bit too left along the political scale.
 

Grandpa

Well-Known Member
Mar 2, 2014
9,724
53,642
Colorado
I thought America was a low taxing country that supports the free-enterprise spirit. The top income tax bracket is 39% for the Feds? So, if you add the States, you in America most probably pay more tax than here and some say this country is a bit too left along the political scale.

Well..... yes, the top tax bracket is about 39%. But people who might otherwise qualify for that probably don't pay it because of sheltered income and deductions. Warren Buffet, one of the country's well-known billionaires, is famous for saying that his secretary pays a higher percent income tax than he does - and he was saying it as a criticism of the tax code. When you get into the lower brackets, earned income credit can actually give you a bigger refund than what you paid in.

Hey, no nation is entirely consistent in their policies and procedures. And the US tax code is baffling, not just from an analytic sense but a logical sense.

But we're drifting into Hot Topics now, which is a playing ground I'm comfortable in, but others might not like it.
 

Blake

Deleted User
Feb 18, 2013
4,191
17,479
Apparently some of the biggest companies in the world paid zero tax on profits earned in Australia, last year. Why should we pay tax, they say? We employ thousands of people who pay tax so if it wasn't for us, you wouldn't be getting any of that tax in the first place. I suppose that's why tax lawyers get the big bucks.
 

Sundrop

Sunny the Great & Wonderful
Jun 12, 2008
28,520
156,619
Titans, People..........:(

I'm so depressed..........I guess I won't be getting those fur-lined long johns I had my eye on........
I won two angora rabbits and a llama at an auction last week.....it was completely by accident......but I'd be willing to knit you a custom pair of long johns, since you made that lovely sweater for me.
 

Out of Order

Sign of the Times
Feb 9, 2011
29,007
162,154
New Hampster
I won two angora rabbits and a llama at an auction last week.....it was completely by accident......but I'd be willing to knit you a custom pair of long johns, since you made that lovely sweater for me.

My wife is terribly allergic to rabbit. So I'll definitely want a pair..........:biggrin-new:

How did you end up winning those animals anyway?