Kinda has a stench of “the wealthy get taxed too much 😢”
The IRS doesn’t get that money. The IRS processes that money and prevents your lottery-ticket-buying-ass from hoarding it all, and redistributes some of that unnecessary wealth to the utilities and services were all invested in together as a society.
If only actual billionaires got taxed that much…
Sadly, the IRS isn’t properly staffed or equip to go after rich people…
Yeah good thing they take it from lottery winners up front.
I heard this eloquent way of saying it the other day:
The IRS doesn’t have the money to go after people with money.
Like schools
Congratulations to the lottery company who was allowed to advertise a $400m prize as $1.28b.
Yep, that’s the real issue!
Over here it’s not taxed so prizes are smaller but they represent reality!
So we do all realize that advertised jackpots are annuitized amounts and that the vast majority take the net present value lump sum, which is usually about half the advertised amount, right?
Winner probably got about six hundred million, of which roughly forty percent was taken for taxes give or take state income tax rates.
Not being from the US I didn’t know that. That takes something from being completely unreasonable to be understandable.
I can’t believe some fake rich guy on the internet lied to us!
Still, if they’re not idiots the winner doesn’t have to work again so they’re still good.
You can take a lump sum payout or get it paid to you over 20 years. The lump sum is usually around 60% as the other poster said.
Damn, only half a billion dollars you didn’t have before. Might as well not even bother.
Is it even worth collecting the prize at this point?? /s
Gotta pay for all those new agents.
The IRS is chronically underfunded. They can’t keep the money, it goes to Aunt Sam.
And btw the IRS has not enough staff to investigatevif rich people pay their fair share, therefore they go mostly for normal people.
