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Should PB MM be tax-free/lump sum

Topic closed. 48 replies. Last post 9 years ago by konane.

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Should PB and MM be tax free, lump sum actual amount payout?

Yes! [ 63 ]  [82.89%]
No. [ 4 ]  [5.26%]
I don't care as long as I win it. [ 9 ]  [11.84%]
Total Valid Votes [ 76 ]  
Discarded Votes [ 1 ]  
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Delaware
United States
Member #30273
January 14, 2006
494 Posts
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Posted: July 13, 2007, 7:14 pm - IP Logged

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.


    United States
    Member #17555
    June 22, 2005
    5582 Posts
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    Posted: July 13, 2007, 8:04 pm - IP Logged

    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.  

    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.....

      JAP69's avatar - alas
      South Carolina
      United States
      Member #6
      November 4, 2001
      8797 Posts
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      Posted: July 13, 2007, 8:18 pm - IP Logged

      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 dig ditches and another billion having people fill the ditches right behind them it wouldn't be nearly as big a waste as you might think.  That's precisely because the money would move around and help the economy. The government  would get a big chunk back right away as income taxes so the cost wouldn't really be $2 billion, and everyone who earned money digging and filling ditches would spend or invest whatever wasn't paid in taxes. That would let other people make money (and of course they'd pay taxes on the income), which they'd  spend and invest.  The problem with government spending isn't nearly so much about the amount they spend it on as what they spend it on.  $2 billion for pointlessly moving dirt can help the economy, but there are much better ways to spend $2 billion.

      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 Puke

      Oo'Ka


        United States
        Member #17555
        June 22, 2005
        5582 Posts
        Offline
        Posted: July 13, 2007, 8:34 pm - IP Logged

        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 Puke

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

        A no speed limit bridge....lol

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

          Avatar
          NY
          United States
          Member #23835
          October 16, 2005
          3501 Posts
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          Posted: July 13, 2007, 10:52 pm - IP Logged

          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.  

          They pass a law.

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            Westerose
            Canada
            Member #52915
            June 15, 2007
            189 Posts
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            Posted: July 14, 2007, 1:48 am - IP Logged

            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.

            weird

            You live a life of abundance! You have won the lottery! Belief creates reality! Believe!

              Coin Toss's avatar - shape barbed.jpg
              Zeta Reticuli Star System
              United States
              Member #30470
              January 17, 2006
              10392 Posts
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              Posted: July 14, 2007, 1:54 am - IP Logged

              They pass a law.

              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.  

              Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

              Lep

              There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                LuckyLilly's avatar - savy chick.png

                United States
                Member #50124
                February 26, 2007
                601 Posts
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                Posted: July 14, 2007, 10:56 am - IP Logged

                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.

                weird

                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!

                  hypersoniq's avatar - 8ball
                  Pennsylvania
                  United States
                  Member #1340
                  April 6, 2003
                  2450 Posts
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                  Posted: July 14, 2007, 12:50 pm - IP Logged

                  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 just to avoid the confusion. you can change your withholding amount on a w2 at work, you should be able to specify the withholding amount on your w2g... they make all this way more complicated than it needs to be... THAT is why winners need a team of professionals.

                  Playing more than one ticket per game is betting against yourself.

                    Avatar
                    NY
                    United States
                    Member #23835
                    October 16, 2005
                    3501 Posts
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                    Posted: July 14, 2007, 11:22 pm - IP Logged

                    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.  

                    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.

                      Avatar
                      Westerose
                      Canada
                      Member #52915
                      June 15, 2007
                      189 Posts
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                      Posted: July 15, 2007, 2:43 am - IP Logged

                      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.

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

                      You live a life of abundance! You have won the lottery! Belief creates reality! Believe!

                        csfb's avatar - Lottery-001.jpg

                        United States
                        Member #15309
                        May 13, 2005
                        307 Posts
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                        Posted: July 30, 2007, 11:54 pm - IP Logged

                        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.  What?

                                 Sun Smiley             

                          dvdiva's avatar - 8ball

                          United States
                          Member #2338
                          September 17, 2003
                          2063 Posts
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                          Posted: July 31, 2007, 12:42 am - IP Logged

                          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.

                            Badger's avatar - adu50016 NorthAmericanBadger.jpg
                            Wisconsin
                            United States
                            Member #1303
                            March 27, 2003
                            1508 Posts
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                            Posted: July 31, 2007, 6:03 pm - IP Logged

                            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 dig ditches and another billion having people fill the ditches right behind them it wouldn't be nearly as big a waste as you might think.  That's precisely because the money would move around and help the economy. The government  would get a big chunk back right away as income taxes so the cost wouldn't really be $2 billion, and everyone who earned money digging and filling ditches would spend or invest whatever wasn't paid in taxes. That would let other people make money (and of course they'd pay taxes on the income), which they'd  spend and invest.  The problem with government spending isn't nearly so much about the amount they spend it on as what they spend it on.  $2 billion for pointlessly moving dirt can help the economy, but there are much better ways to spend $2 billion.

                            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 the system, and encourage them to go outside the system.

                            The govt does not have to work within iits budgets, like businesses must.  They merely spend, and when they overspend, they grab the taxpayers to bail them out. And since what they demand from the taxpayers is not voluntary, the govt is not held accountable.  Occassionally, they seem to have one of their weasels caught -- which seems to be happening to the Senator from Alaska finally....he who was the author of the gigantic waste of money "Bridge to Nowhere" nonsense.  But that won't stop the rest of them. They can not go out of business.

                            At least.......not yet. But they are heading for that eventually. Because eventually, more and more people will find the risk of opperating outside the system to be worth it for survival. 

                            ============

                            How can you tell if a politician is lying?

                            Answer: His lips are moving.


                              United States
                              Member #16612
                              June 2, 2005
                              3493 Posts
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                              Posted: August 4, 2007, 2:26 am - IP Logged

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