Lottery

Homeslice · 06-05-2009, 08:35 PM

So a guy in South Dakota just won the lottery for $232 million, but after taxes he only gets $89 million. That's like a 62% tax. Since the maximum income tax rate is only like 39%, what other taxes could they be hitting him with? Some special "gambling tax" or some bs like that?

derf · 06-05-2009, 08:57 PM

I bet he took the lump sum, in which case he looses about 1/2 the money right away.

The total lottery amount is based on you "investing" a majority of the money in the government over a number of years, and they pay you off each year with a payment for the period of time set. Over the course of the payout you earn interest on the money the Gov holds. If you take the lump sum you dont make the interest.

Then after that he gets hit with taxes.

Tsunami · 06-05-2009, 08:57 PM

did he actually win the full 232mil? It might be 232 million if he decided on an annual payout vs a lump sum which is a percentage of that and then got taxed on the lump sum.

Trip · 06-05-2009, 09:17 PM

say he gets 115k lump sum, and about 40% gets hit by uncle same, so he ends up near 70 mill. Fuck that is still a good time.

DLIT · 06-05-2009, 09:22 PM

I don't care if I won 100 million and ended up getting only 100 thousand.

Amber Lamps · 06-05-2009, 09:40 PM

I think for a very brief second I would be "WTF where's the rest of my money?" but then the realization of $89,000,000 would sink in and I would be just fine with that!

shmike · 06-05-2009, 10:14 PM

Quote:

Originally Posted by derf

I bet he took the lump sum, in which case he looses about 1/2 the money right away.

The total lottery amount is based on you "investing" a majority of the money in the government over a number of years, and they pay you off each year with a payment for the period of time set. Over the course of the payout you earn interest on the money the Gov holds. If you take the lump sum you dont make the interest.

Then after that he gets hit with taxes.

Quote:

Originally Posted by Trip

say he gets 115k lump sum, and about 40% gets hit by uncle same, so he ends up near 70 mill. Fuck that is still a good time.

That's it.

Lump sum is the present value of the dollars. It is usually about 1/2 of the quoted amount.

Lottery withholdings are usually 28%, sometimes 31%, some as low as 25%, which means there will still be a SUBSTANTIAL bill when you file your taxes the following year.

This guy was the largest winner in history to not have to split the pot with anyone else.

Trip · 06-05-2009, 10:39 PM

cleaned up all the bad info

then if you unfortunately live in a state with state taxes, yey for FLA and TENN for not having that shit, you add more to the bill.

101lifts2 · 06-06-2009, 01:39 AM

Quote:

Originally Posted by Trip

cleaned up all the bad info

then if you unfortunately live in a state with state taxes, yey for FLA and TENN for not having that shit, you add more to the bill.

Yeah Liberal CA is at 10 something, but the jews wanna push it to 12. something. fuckers.

MikeSP1 · 06-06-2009, 01:41 AM

Even still, he made off with 89 mill. That's not something to pick you nose at.

Take 1m and have a house built the way you want it. Then take maybe 50k and buy a nice car as a commuter. 130k and buy a DB9, then take 25k and buy whatever bike you could ever want and you'd still more money than you would need.

06-05-2009, 08:35 PM	#1
Homeslice Elitist Join Date: Nov 2008 Location: SF Bay Area Moto: Gix 750 Posts: 11,351	Lottery So a guy in South Dakota just won the lottery for $232 million, but after taxes he only gets $89 million. That's like a 62% tax. Since the maximum income tax rate is only like 39%, what other taxes could they be hitting him with? Some special "gambling tax" or some bs like that?

06-05-2009, 08:57 PM	#2
derf token jewboy Join Date: Nov 2008 Moto: CBR 900, KLR ugly ass duckling, Gas Man Posts: 10,799	I bet he took the lump sum, in which case he looses about 1/2 the money right away. The total lottery amount is based on you "investing" a majority of the money in the government over a number of years, and they pay you off each year with a payment for the period of time set. Over the course of the payout you earn interest on the money the Gov holds. If you take the lump sum you dont make the interest. Then after that he gets hit with taxes. __________________

06-05-2009, 09:22 PM	#5
DLIT Clit Commander Join Date: Feb 2008 Location: Las Vegas Moto: 2012 Ducati 1199 Panigale S Posts: 4,189	I don't care if I won 100 million and ended up getting only 100 thousand. __________________ Dress for the crash. Not the ride.

06-06-2009, 01:41 AM	#10
MikeSP1 Perpetual trouble Join Date: Jun 2008 Location: at the base of the Alps Moto: VTX 1300C, RC51, CBR600RR, CBR929RR Posts: 715	Even still, he made off with 89 mill. That's not something to pick you nose at. Take 1m and have a house built the way you want it. Then take maybe 50k and buy a nice car as a commuter. 130k and buy a DB9, then take 25k and buy whatever bike you could ever want and you'd still more money than you would need. __________________ "Life is not a journey to the grave with the intention of arriving safely in one pretty and well preserved piece, but to skid across the line broadside, thoroughly used up, worn out, leaking oil, shouting GERONIMO!"

06-05-2009, 08:57 PM	#3
Tsunami Pug Queen Join Date: Dec 2008 Location: Las Vegas, NV Moto: DR200, SV650 Posts: 2,486	did he actually win the full 232mil? It might be 232 million if he decided on an annual payout vs a lump sum which is a percentage of that and then got taxed on the lump sum.

06-05-2009, 09:40 PM	#6
Amber Lamps Moto GP Star Join Date: Mar 2008 Posts: 14,556	I think for a very brief second I would be "WTF where's the rest of my money?" but then the realization of $89,000,000 would sink in and I would be just fine with that!