BF2S Forums Rancher wins $232 million lottery

When you take a lump sum you don't get the entire amount.  They only give you like 70% for lump sum, and then you pay taxes on top of that.

Jebus wrote:

What's a "lump sum"?

Getting it all at once instead of yearly payments or whatever. Personally I'd want to take a partial of both.

As for the rancher, I'm sure $88M is more than enough. And if he's some old guy, then of course he's gonna want to take the lump sum because he's not gonna live long enough to get the full pay out.

mtb0minime wrote:

Jebus wrote:

What's a "lump sum"?

Getting it all at once instead of yearly payments or whatever. Personally I'd want to take a partial of both.

As for the rancher, I'm sure $88M is more than enough. And if he's some old guy, then of course he's gonna want to take the lump sum because he's not gonna live long enough to get the full pay out.

The winner is 23 years old. Made his life right there.

Also, by taking the partial payments, you're screwing yourself, as you'll have to pay more taxes in the end.

mtb0minime wrote:

And if he's some old guy, then of course he's gonna want to take the lump sum because he's not gonna live long enough to get the full pay out.

This

From what I understand, (with Lotto in this country at least,) you don't have to pay tax on the winnings. You have to pay tax on any earnings those winnings make, (i.e. interest,) but the winnings themselves remain untouched by the government. Then again we don't get jackpots in the quarter of a billion catagory.

Personally I think $88 million is more than enough.

Reciprocity wrote:

yes, lotto winnings are taxed.  as are casino winnings and anything you win on a gameshow or in any contest, whether cash or prizes.  It's all considered income.

Taxing gambling winnings would mean you would have to give tax deductions for anyone who lost money. And given people always lose more then they win the government would be paying more in tax deductions then they get from increased income tax... Stupid imo. Lots of extra paperwork for a negative return.. GG America.

lol at lotteries. they're basically a tax on the poor

DrunkFace wrote:

Reciprocity wrote:

yes, lotto winnings are taxed.  as are casino winnings and anything you win on a gameshow or in any contest, whether cash or prizes.  It's all considered income.

Taxing gambling winnings would mean you would have to give tax deductions for anyone who lost money. And given people always lose more then they win the government would be paying more in tax deductions then they get from increased income tax... Stupid imo. Lots of extra paperwork for a negative return.. GG America.

I'm willing to bet the taxation laws dodge that particular problem m8.

elite.mafia wrote:

you could live off 88 million dollars easily. just buy a 1 million dollar house in cash, invest about 10 into stocks, the rest to daily living, car, etc. you wouldn't ever have to work again with 88m

tbh now would be a good time to buy alot of property. (not sure if its the same in america) but houses are pretty affordable atm in aus... buy a whole heap of them and then sell them when the industry recovers

DrunkFace wrote:

Reciprocity wrote:

yes, lotto winnings are taxed.  as are casino winnings and anything you win on a gameshow or in any contest, whether cash or prizes.  It's all considered income.

Taxing gambling winnings would mean you would have to give tax deductions for anyone who lost money. And given people always lose more then they win the government would be paying more in tax deductions then they get from increased income tax... Stupid imo. Lots of extra paperwork for a negative return.. GG America.

You actually think the majority of the people take every single losing ticket with them while doing their taxes? It would be tedious and annoying. I say only a really small percentage actually do that.

12/f/taiwan wrote:

DrunkFace wrote:

Reciprocity wrote:

yes, lotto winnings are taxed.  as are casino winnings and anything you win on a gameshow or in any contest, whether cash or prizes.  It's all considered income.

Taxing gambling winnings would mean you would have to give tax deductions for anyone who lost money. And given people always lose more then they win the government would be paying more in tax deductions then they get from increased income tax... Stupid imo. Lots of extra paperwork for a negative return.. GG America.

You actually think the majority of the people take every single losing ticket with them while doing their taxes? It would be tedious and annoying. I say only a really small percentage actually do that.

It's relying on the publics laziness, maybe its does net the government money but it has to potential to lose it, and it's not just lotto tickets, its all forms of gambling from lotto to casinos to betting on sports which can amount to large sums of money people are not going to just 'forget' about. It also then requires home gambling/betting (for money) illegal because it could be seen as tax evasion.

The system is pointless, gambling is more or less just the transfer of money between winners and losers no matter the type, they just use a medium (bookies, casino, lotto) to collect and pay the money, but in the end there will be some net losers and some net winners and the government is just taking a percentage of the net winners gains and redistributing it back to the losers taking very little (or possibly a loss) in the process. That doesn't even take into consideration the whole lot of extra paper work require to make sure everyone is declaring their income and loses correctly both on the public and government.

Last edited by DrunkFace (2009-06-05 23:08:07)