|Posted: November 15, 2006, 9:39 am - IP Logged|
If they where to do it NO federal tax on winnings would be nice.
I support the fair tax. It would eliminate all taxes on lottery winnings
Learn about the Fair Tax.
(Off topic rant alert)
While I'd rather not turn this into a political debate on this forum, I feel I should point that this is actually a very bad proposal. It would simply replace one nightmare with another. Creating a 23% sales tax will be more expensive than what exists today when you actually do the math yourself (and that doesn't count state). Rather than focusing on creating a new tax, the emphasis needs to be on reduction and outright elimination of the current income tax, without creating a new monster to replace it. "Revenue neutral" should not be a goal, as reducing wasteful spending should be concurrent with any tax cut (and we all know how much of that there is). It is possible to do this, it's just that no politician is willing to come up with a reasonable proposal.
What will wind up happening, assuming you got it passed, is they will do a "phase-in, phase-out" and it'll be altered significantly from it's intended purpose, and at some point, the phasing will be stopped, and then you will have BOTH to contend with. And the "prebate" will be the first thing to go (see their site for details). Nice thought, but with the mindset in Washington as it is today, it will not work.
(steps off soapbox)