Should PB MM be tax-free/lump sum

Reply #48

konane — Tue, 16 Oct 2007 21:35:20 GMT

Yes lottery winnings should be completely tax free and all federal taxes should be replaced with the Fair Tax, food and drugs exempt so the government can quit playing the pea shuffle game with tax money.

Excellent way to capture under the radar taxes currently being uncollected.

_________________

What is the FairTax plan?

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national... [ More ]

Reply #47

psykomo — Mon, 15 Oct 2007 23:02:33 GMT

THANK's^^^^^^^^ MYSTME:

no woossie's down under mate

congrat's too u blote's

(remember.....up-here we don't know our asset's from a hole)

in the GROUND !

the USA can't rub 2 stick's........together SMELL^^^^FIRE^^^^

ALL U AUSSIE's NEED to do is come on to CANADA walk----thru^

welcome^^^^welcomE$$$$$$

(BUT don't PLAY a Lottery with an RNG)<<<<<<<<

too the USA^^^^^^

LOL

Reply #46

psykomo — Mon, 15 Oct 2007 21:49:27 GMT

thanks..........>>>>>>>>>>>>^^^^^^^^^^^^^^^^^^manzplan:

GREAT POST^^^^^

LOL on a BIG>>>>>>>>>>>>>>>>>>>>>> JP

Reply #45

psykomo — Mon, 15 Oct 2007 21:10:27 GMT

but......VOTE>>>> NO !!!

if you don't think your local or NATIONAL politician DOES NOT <<

GET ENOFFUGH.......HEALTH care???

please, please LET's

L@@K ...(after these pur babies

Reply #44

psykomo — Mon, 15 Oct 2007 19:08:53 GMT

>>>>>>>>>>>>>>>>>>>>>>>>>>>

$O REMEMBER.....Halloween is HERE

now we can all DRESS-UP like

Teddy Kennedy and have HELL

of ahhhhhhhAAAAAAHHHHHHH

Boston Tea PARTY

LOL>>>>>>>TOO>>>>>>>when you sober-up PLAY for JACKPOT

Reply #43

JackpotWanna — Tue, 09 Oct 2007 21:07:22 GMT

Reply #42

TheGameGrl — Thu, 04 Oct 2007 22:38:50 GMT

Uncle Jim, what a wonderful commentary you made! I actually think I had some shady relatives that did do that kinda scam in bars. To think they are now probably the politicians that passed the tax law. They get ya no mattah whatcha earn!

Not a fan of taxes in the US .

I said yes to the survey poll.

Reply #41

smooththaboss — Thu, 04 Oct 2007 09:38:25 GMT

definitly should not tax the money winnings

Reply #40

MYSTME — Mon, 01 Oct 2007 08:10:44 GMT

no tax on wins in australia, but the money that is not won is given back to the people in grants. the rest goes on wages and such.in other words its more like charity than tax.charity sounds better to me than tax.

Reply #39

Just6ntlc — Wed, 12 Sep 2007 19:21:00 GMT

I also hope that all states take away the sales tax whenever someone wins a jackpot.

Reply #38

DoubleDown — Thu, 16 Aug 2007 19:09:29 GMT

You're in the wrong thread for your ever present hope, J6...

Reply #37

Just6ntlc — Thu, 16 Aug 2007 19:04:26 GMT

I hope Powerball and Mega Millions continues to roll.

Reply #36

Todd — Sat, 11 Aug 2007 11:17:56 GMT

Reply #35

KY Floyd — Sat, 11 Aug 2007 07:24:17 GMT

If you're married and filing jointly the 35% rate kicks in at $336,550. Social Security taxes only apply to earned income, but both earned and unearned income are taxed at the regular rate unless specific conditions are met, such as capital gains on investments that are held long enough. Anything you earn on the 10% that isn't withheld would be taxed at the same 35% unless it qualifies for the reduced capital gains rate. As a practical matter you aren't likely to have that money invested for... [ More ]

Reply #34

AuntiePat — Fri, 10 Aug 2007 22:05:34 GMT

I believe anything over $335,000 is taxed at 35% Federally--although I'm not certain if that rate is based on earned income or unearned income (taxed at a higher rate). Wouldn't the money you earn off your winnings be taxed at a pretty stiff rate? The distribution year is the worst for taxes and I would sure feel better knowing that all the money that's left at distribution was mine--but that's just the way I feel. Since anything you do with the extra 10% would be taxed at capital gains rate... [ More ]

Reply #33

KY Floyd — Fri, 10 Aug 2007 15:35:05 GMT

The 25% withholding rate wasn't put into place just to deal with jackpot winners. It's a single withholding rate that covers a bunch of things. If a win increases your taxable income by a few hundred grand you're going to owe more than 25% on it. If you win $750 it's not likely to fall into a higher tax bracket, and if you aren't already in the 25% bracket you'll only owe 15%. That will get you a whopping $75 refund later on. Most people fall into the 25% bracket, so a 25% withholding rate works... [ More ]

Reply #32

KY Floyd — Fri, 10 Aug 2007 15:23:54 GMT

They already start with a cash value. That's just not what they use when they advertise.

Reply #31

Uncle Jim — Fri, 10 Aug 2007 12:43:29 GMT

AuntiPat is correct about reducing the tax burden. I've studied this and it doesn't matter how you claim your prize...Trust...LLC or otherwise I can't see a way to significently reduce the Federal Tax burden unless you form a charitable trust and then you loose control of most of the money.

I too have heard the stories about lotteries promoting charitable donations as a way to reduce the tax burden. But I never understood why they would do that. Being the cynic that I am I always believ... [ More ]

Reply #30

AuntiePat — Fri, 10 Aug 2007 02:43:54 GMT

Actually the tax for the Feds is closer to 35% which they will tell you when your winnings are transferred into your account. Had a friend who won an OH Lotto Jackpot many years ago with a group from his work and they informed him and each of the others that he/they would owe more at the end of the year to the Feds. Their excuse is that if a person should make a large contribution to charity that first year--then it would significantly reduce their tax responsibility so they underwithhold o... [ More ]

Reply #29

Just6ntlc — Sat, 04 Aug 2007 06:26:55 GMT

My vote is yes. I hope MM and PB starts with a cash value lump sum jackpot in the future.

Reply #28

Badger — Tue, 31 Jul 2007 22:03:28 GMT

Based upon what you are saying then, more taxes would be better for the economy. It would move more moeny around.

I see where John Edwards wants to increase the Captial Gains tax by nearly double. That should really help the economy then. Lots of money changing hands. Of course, he is totally ignoring that history tells otherwise. Like the last time this was tried, the tax revenues fell by about 40%. That's because taxes are a punitive endeavor. They discourage people from staying within t... [ More ]

Reply #27

dvdiva — Tue, 31 Jul 2007 04:42:40 GMT

Yes it should be tax-free just like Canada. Europe and the rest of the world outside of the US but our politicians have less intellegence than the rest of the world so don't hold your breath.

Reply #26

csfb — Tue, 31 Jul 2007 03:54:08 GMT

Illegal aliens who are not supposed to be here, much less allowed to work, are required to register with the i.r.s. and have tax i.d. numbers for purposes of filing their income taxes.

Reply #25

manzplan — Sun, 15 Jul 2007 06:43:26 GMT

the point it that it's a pointless law as who in their right minds would register that they are doing something illegal

Reply #24

KY Floyd — Sun, 15 Jul 2007 03:22:51 GMT

If you want to ba a bookie you have to register or whatever. After you've done that you still aren't allowed to be a bookie. There's a catch, but no contradiction. Nothing about the first says that you can be a bookie if you register. It only says that bookies have to register.

Reply #23

hypersoniq — Sat, 14 Jul 2007 16:50:50 GMT

what they SHOULD do is just withhold 35%, then when you do your taxes, you would be entitled to a REFUND on the amount you overpaid on the first $349,700.

the government requires 25% to be withheld, didn't someone do the math? IF you are not from the USA they withhold 30%, but if you are from here, the withhold 25% AND you owe 35% on anything over $349,700?

And just wait until after the 2008 elections when that 35% will no doubt jump back up to 40% or higher...

they should be tax-free j... [ More ]

Reply #22

LuckyLilly — Sat, 14 Jul 2007 14:56:51 GMT

Yes! Very odd! I know alot of people who enter sweepstakes, but won't enter the one where HGTV gives away a house worth a few million dollars because the taxes are too high. Well, sell the dang house, pay the taxes, and have a million and a half left to spend as you like, Einstein

Reply #21

Coin Toss — Sat, 14 Jul 2007 05:54:02 GMT

Floyd

I know that. But the law that says a bookie must register and pay for a tax stamp contradicts the law that it's illegal to be a bookie.

There's a catch, Yossarian.

Reply #20

manzplan — Sat, 14 Jul 2007 05:48:36 GMT

regardless of how you voted on this subject have you ever had anyone make this very stupid statement to you in regards to winning the lottery?

Do you realize who much you would have to pay in taxes on that? with the attitude as if it were on their or your present income.

Say you made 50k a year and and you won 50 Million and had to pay 25% it's not like 25% of 50 Million is coming out of the 50k..... it's coming out of the 50 Million yet some folks have that mindset about it.

weir... [ More ]

Reply #19

KY Floyd — Sat, 14 Jul 2007 02:52:12 GMT

They pass a law.

Reply #18

pacattack05 — Sat, 14 Jul 2007 00:34:51 GMT

Let's build a bridge in Montana...lol

A no speed limit bridge....lol

You can truly fly.............

Reply #17

JAP69 — Sat, 14 Jul 2007 00:18:59 GMT

Lottery winnings should be tax free.

The Gov,t already does the money shuffle.

Create paper work jobs that is really not needed.

Hire 3 people to do the job of 1.

Give away grant money to study the sex life of a fruit fly.

Build bridges to nowhere.

Pay landowners not to grow crops.

Ho Hum

Makes me

Reply #16

pacattack05 — Sat, 14 Jul 2007 00:04:50 GMT

Cool to know...I only had raw info. I knew something had to give.....LOL

It's fair i guess, if you want a lump sum.....

Reply #15

rdc137 — Fri, 13 Jul 2007 23:14:38 GMT

If Powerball's annunity were eliminated and the jackpot became lump-sum tax-free, I'd be cool with that, despite my likings of annuities.

Reply #14

Coin Toss — Fri, 13 Jul 2007 22:53:56 GMT

pacattack05

I can't remember who but an Aussie here on LP once posted that in Australia the tickets are $1.03 and the $.03 is what pays the tax.

Pretty slick. Not only do the losers pay the winner (and the house keeps its take, i.e., most of it) but the losers pay the tax for the winner, too.

I'd like to see U.S. lotteries go to that- but with a rule that the $.03 doesn't steadily increase and increase.

Reply #13

pacattack05 — Fri, 13 Jul 2007 20:23:50 GMT

I don't know about most countries, but with Canada and Australia, they can afford not to tax the winners because the whole country is paying into one game.

The money coming in is so much more than the payout, they just use that huge surplus for tax purposes.

If this country had a nationwide version of Powerball or whatever, then we would have the same benefits as Canada and Australia.

Reply #12

manzplan — Fri, 13 Jul 2007 19:53:01 GMT

The NO vote on this poll is proof enough for me that the IRS monitors this website lmao

Reply #11

Coin Toss — Thu, 12 Jul 2007 17:13:18 GMT

KYFloyd

My point is how does the same government that declares something illegal demand that those who do that activity as a business have to register to get a tax stamp.

Reply #10

KY Floyd — Thu, 12 Jul 2007 16:12:43 GMT

It's not that gambling winnings are taxed. Income is taxed, except when it's exempt for some reason. Should lottery winnings be tax-exempt? Most lottery winnings are already exempt in practice, since most of the payouts are under the reporting threshold. I don't know about the rest. If I won I'd sure like it, but if the guy across the street is lucky enough to get a few million bucks I don't see much of a problem with him paying taxes on it. I do think that legitimate losses shouldn't be limi... [ More ]

Reply #9

KY Floyd — Thu, 12 Jul 2007 15:57:27 GMT

Do you suppose your plumber's income should be tax free? After all, the money you spent having the plumbing done had already been taxed, right? Money changes hands. If it didn't there wouldn't be any need to have it. Just because somebody had the money before it worked its way to you doesn't mean it's double taxation when you have to pay income tax on your earnings.

FWIW, pork barrel projects annoy me as much as the next guy, but if the government spent a billion dollars a year having people... [ More ]

Reply #8

justxploring — Thu, 12 Jul 2007 15:33:22 GMT

I checked Just let me win but of course I wish prizes weren't taxed. Still, the money is a form of income. I only think the rate is way too high.

So my answer is somewhere in the middle. I wish they wouldn't tax lottery wins so heavily, but if I win only the $20 million Florida jackpot on Saturday I will not complain, although I think 35% is highway robbery and usually winners end up owing much more than the 25% deducted by the Lottery. If the Lottery prizes are taxed, perhaps they sho... [ More ]

Reply #7

LuckyLilly — Thu, 12 Jul 2007 15:24:16 GMT

Yes, lottery winnings should be tax free, as should sweepstakes prizes.

Do I see the govt swinging that way any time soon? Nope. In fact my state just added a tax on lottery winnings after we got our first big powerball winner a decade ago, and they did the math on how much more income the lottery could make for the state if they imposed that 7.9% tax. Unfortunately powerball didn't have a cash option at the time and the poor woman who won before the tax was enacted now has to pay taxes on... [ More ]

Reply #6

Uncle Jim — Thu, 12 Jul 2007 14:39:12 GMT

As to the first part of the question...Yes lottery winnings should be tax free...as they are almost everywhere else in the world.

As to the second part...Yes Powerball and Megamillions should do away with the deceptive practice of advertising the annuity as the jackpot prize and the ridiculous notion of a cash value. No other business in the U.S. would be able to operate this way.

Let's face it...U.S. lotteries do this because they believe...with some justification...that larger jackp... [ More ]

Reply #5

Guru101 — Thu, 12 Jul 2007 14:14:01 GMT

Just let me win. I'll let you know after that.

Reply #4

CCHS13 — Thu, 12 Jul 2007 12:39:24 GMT

In the good ol US to expect anything not to be taxed is a little unrealistic but that would

be too much like right and we know that will never happen. On a more realistic note the

taxes should definetly be reduced. I think its approx 25% just for Federal and that is

just way too high. They win the lottery everytime somebody wins

Reply #3

hearsetrax — Thu, 12 Jul 2007 12:36:14 GMT

Reply #2

Badger — Thu, 12 Jul 2007 11:45:04 GMT

Most definitely ! Our govt has a real nasty habit of re-taxing our dollars. The dollars spent on lotteries have already been taxed when they were earned. Then if you don't win, that is another tax ; albeit a voluntary one. If you do win, they tax the already-taxed dollars again.

If they could, they would re-tax and re-tax until there was nothing left. Then they'd spend it on something ridiculous that is not needed, like many of their pork projects. No politician seems to have ever met a... [ More ]

Reply #1

Coin Toss — Thu, 12 Jul 2007 06:14:23 GMT

Yeah, they should, but it can't happen while the U.S. taxes gambling winnings.

U.S. gambling laws border on the ridiculous- when the Irish Sweepstakes was really popular, it was against the law to buy a ticket, but if you won, you were taxed.

It's against the law to be a bookie, yet bookies are supposed to register, pay $50, and get a tax stamp (as are drug dealers).

Should PB MM be tax-free/lump sum

manzplan — Thu, 12 Jul 2007 05:16:45 GMT

Most Lotteries in the world outside of the US are Tax Free and the prize is paid out lump sum in the actual amount advertized. Do you feel Powerball and MegaMillions should do this as well