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The Lottery Bite
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Category: Rants

Word count/read time: 439 words; 2 minutes

So you just won the two billion dollar lottery. The least of your worries would be hiring three CPAs and four lawyers who don't know each other. Each accountant would keep the other ones honest and each lawyer would do the same plus an extra. Really, first thing anyone should do.

Taking home the maximum amount requires annuity payments. Two or three decades of them. Relying on an agency to be solvent for that long or honor payments as such? Might as well buy a bridge in Brooklyn; it has better odds. People usually take the lump sum.

Of that $2B, half will be taken away because it is a lump sum. Then come the taxes, which federally will eat nearly 40% of the take. States may collect up to 11%. Expect additional taxes, fees, and expenses for winning and using your money, rest assured.

 
Or buy off the president and get a windfall.
 
Your pillaged winnings get taxed again courtesy of the sales tax. The merchant's profits and the wages he paid to make the items get taxed again. And on and on, all the way down the line. Durable goods have yearly taxes for the privilege of owning them (cars, real estate, other). Some localities tax tools, inventory, shop equipment, even portable fans.

Lucky for the state if a new winner suddenly passes away. Inheritance and estate taxes could approach 60% of whatever remains. Plus, countless millions would be spent executing the estate. Whatever was given away, unless to a tax-exempt charity or immediate family member, could be taxed starting all over.

How much does the government get in taxes from this $1B winnings using this foodchain, down to the last dollar? It must be a high number knowing ~50% can be chopped on day one. Random Joe guesses it's up to 80% after everything is calculated.

They've said the lottery is a tax on the poor and disadvantaged. In reality, it is cash flow for the government. Some localities earmark it for "good" purposes like education or sports but they also write laws that let them use it for whatever they want. The Santa Claus lie, I suppose.

Winning large sums of money raises eyebrows. The financial control our government "levies" would be criminal in the private sector. Reverse loan sharking...anyone? Freeloaders and scammers, naturally, hound these bazillionaires. Families and friends have been torn apart for less.

Still, it's enough money for anyone's dreams, at least a little bit. Should the biggie visit me I will put 50% of the take-home to an educational and/or environmental cause. I envision a fully equipped worker's space with classes and more, situated on protected and connected natural landscape.


Posted by M: November 20, 2022


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