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Old 06-05-2009, 04:02 PM
 
2,153 posts, read 5,536,709 times
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It doesn't really hit you until you see a story like this:

SD rancher wins $232 million jackpot - Yahoo! News (http://news.yahoo.com/s/ap/us_rags_to_riches - broken link)

Won a 232 million jackpot, yet after taxes will walk away with 88.5 million (lump sum picked)?

Yes Liberals, he doesn't need the extra 150 million (anticipating the usual responses).

Judging by his responses though

Quote:
Neal Wanless, 23, said he intends to buy himself more room to roam and repay the kindness other townspeople have shown his family. "I want to thank the Lord for giving me this opportunity and blessing me with this great fortune. I will not squander it," he promised, wearing a big black cowboy hat and a huge grin.
Who do you think would do a better job with that extra money? I think a LOT more good would have come out of that extra $150 million not being in the hands of the Government.
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Old 06-05-2009, 04:09 PM
 
Location: NJ/NY
10,655 posts, read 18,658,282 times
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You get less money to start if you pick lump sum, so the real jackpot was not 232M.
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Old 06-05-2009, 04:12 PM
 
2,153 posts, read 5,536,709 times
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So what was the real jackpot with lump sum? Did I miss it in the article? 160 million or above? Same question would stand either way.
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Old 06-05-2009, 04:20 PM
 
Location: NJ/NY
10,655 posts, read 18,658,282 times
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Quote:
Originally Posted by bls5555 View Post
So what was the real jackpot with lump sum? Did I miss it in the article? 160 million or above? Same question would stand either way.
It's usually about half the jackpot, so $115M probably? I never understood why anyone would choose the lump sum with a jackpot that high!
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Old 06-05-2009, 04:31 PM
 
Location: Dallas, TX
31,767 posts, read 28,809,596 times
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Quote:
Originally Posted by bls5555 View Post
So what was the real jackpot with lump sum? Did I miss it in the article? 160 million or above? Same question would stand either way.
I looked up Texas' state lottery. The current jackpot is $12m. But if the winner wants to be paid out a lump sum amount, he/she gets only $7.5m.

So, by simply choosing lump sum, one loses quite a bit compared to the jackpot (in case of Lotto Texas, about 40%). On top of it, federal income tax (25% flat, over $5K in winning) applies, plus state, if any. Not sure if there are other costs associated.
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Old 06-05-2009, 05:34 PM
 
5,165 posts, read 6,051,141 times
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Quote:
Originally Posted by newtoli View Post
It's usually about half the jackpot, so $115M probably? I never understood why anyone would choose the lump sum with a jackpot that high!
If they are astute investors they can make it work better for them than the annuity the lottery commission provides.
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Old 06-05-2009, 05:41 PM
 
Location: The D-M-V area
13,691 posts, read 18,448,181 times
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I'll be honest with you.

Yeah 88 million out of 232 million is a lot in taxes. But you NEVER HAD that money to begin with so it's kinda hard to miss it. I wouldn't gripe about 88 million. You could live off the interest alone very very very well and never touch that original 88 million ever for the rest of your life.

If you got 5.9% interest off of 88 million that's $5,192,000 per year! This man won't miss a dime!
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Old 06-05-2009, 05:56 PM
 
19,198 posts, read 31,467,877 times
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<EinsteinsGhost> is correct. Federal tax withholding is 25% and that for North Dakota is 5.54%. If the winner took home $88.5 million after taxes, then the lump sum payment would have been on the order of $127 million...
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Old 06-05-2009, 06:44 PM
 
2,709 posts, read 6,313,330 times
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Quote:
Originally Posted by bls5555 View Post
It doesn't really hit you until you see a story like this:
Maybe it doesn't really hit you until you look at it like this:

If you don't like paying taxes . . .
[LEFT]- Don't drive on paved streets or highways.
- Don't call 911.
- Don't flush your toilet.
- Don't bring your garbage to the curb.
- Don't fly in an airplane that uses air-traffic controllers.
- Don't use the court system.
- Don't call the police when you get robbed, attacked, etc.
- Don't use the US Post Office; send all your letters via FedEx or UPS.
- Don't send your children to public schools.
- Don't attend a state university.
- Don't expect a social security payment.
- Don't let Medicare pay your bills if you are over 65 or disabled.
- Don't accept government research findings that subsidize research for your industry.
- Don't climb to the top of the Washington Monument, which is maintained at taxpayer expense.
- Don't make use of police services.
- Don't be rescued by a paramedic team.
- Don't call the fire department if your house is on fire.
- Don't expect federal assistance if a natural disaster destroys your home or business.
- Don't expect the military to defend your country or the national guard to come to your aid in case of a natural disaster.
- Don't visit national parks or hike in national forests.
- Don't eat USDA inspected meat, cheese, eggs or produce.
- Don't take any medications tested and approved by the FDA.
- Don't drink, bathe or otherwise use the water from municipal water systems.
- Don't look at or relay a weather report.
- Don't look at a NASA generated picture or benefit from knowledge gained through the NASA program.
- Don't expect a unit of measure like a gallon of gasoline to be a full gallon.
- Don't expect an elevator to work correctly or not fall while you're in it.
- Don't expect a standard of sanitation or cleanliness in restaurants.
- Don't expect a red light to work.
- Don't use the services of a doctor who is licensed through the state.
- Don't expect research into medical problems such as cancer, heart disease, diabetes, aging, prostrate, menopause, etc. (If someone in your family is suffering from one of these diseases, don't benefit from modern medical care that's been IMPROVED by such research.)
- Don't use the public library.
- Don't go to a state university affiliated hospital.
- Don't watch state college sports.
- Don't use your state's convention centers.
- Don't go to a state, city or municipal-run airport.
- Don't ask for rural electrification. (In other words, if you live out in a remote rurual setting, don't expect electricity that isn't generated through your own solar panels, generator, wind turbine, etc.)
- Don't ask for a business loan from the small business administration.
- Don't ask to use the G.I. bill to go to college.
- Don't drive a car that benefits from government safety regulations (airbags, seatbelts, head restraints, bumpers, etc.).
- Don't use electricity generated by TVA or some government-owned and maintained dam or facility.
- Don't use currency printed by the US Treasury.
- Don't use a bank or credit union that insures your deposits through the FDIC.
- Don't buy or build a house that requires the efforts of county deed offices or needs building permits and inspections.
- Don't get married, have children or die and expect the government to keep track of all the certificates.
- Don't expect the government to keep an eye on cemeteries, crematories and funeral homes so you won't get dug up and thrown in a swamp.
- Don't go to a beach kept clean by the state. (If you DO go to a beach and have a mishap while swimming, don't call for help by the lifeguard, and referring to an earlier item on the list, don't ask for or expect paramedic aid.)
- Don't use public transportation.
- Don't visit public museums.
- Don't go hunting, fishing, or camping on government property.
- Don't cross a bridge. (Unless it's a bridge you built on your own property, of course. But if it's a bridge you come across while driving down the road, don't cross it. Of course, this goes back to the first item on the list: don't drive on paved roads.)
- Don't use truckstops or public restrooms.
- Don't expect the government to protect the copyright or patents for the works you create.
- Don't move to any other developed nation, because the taxes are higher in all the others, except South Africa.
- Don't expect your tap water to be clean and germ free.
- Don't expect there to be much wildlife left other than rats.
- Don't use wood or eat meat grown on Forest Service or BLM land.
- Don't eat ANY food transported on roads or railways.
- Don't eat any vegetables in winter, 'cause they're mostly grown with "reclaimed" water.
- Don't expect any workplace safety standards, labor laws, or minimum wage.
- Don't use any gasoline, oil, or natural gas that was discovered by the USGS.
- Don't live in New Orleans, Sacramento or any other city protected by a levee. (The US Army Corps of Engineers builds the levees.)
- Don't expect zoning laws (residential/commercial, etc.)
- Don't expect clean air, clean water, clean soil, etc.
- Don't expect highway signs.
- Don't expect laws against murder, theft, etc. (the govt. DEFINES crime).
- Don't expect to OWN anything, like your house, car, etc. (The govt. keeps track of titles. Without a title as proof, it's just your word against someone else's.)
- Don't expect anyone to plow your roads when it snows or sweep them when they're dirty. (Of course, you're not supposed to be driving on those paved roads anyway.)
- Don't expect convicted criminals to be in prison and off your street.
- Don't expect to have uniform building codes.
- Don't expect your children to be able to ride the bus to school.
- Don't visit the Smithsonian.
- Don't write any material to be published and copyright it. If you self-publish and someone steals your work and then THEY copyright it, too bad. You're SOL.
- Don't go to your book store and try to find a book by its ISBN number.
- Don't expect the court to appoint a taxpayer-paid attorney to represent you (or your child) if you are accused of a crime.
- Don't call or go to the US Embassy in a foreign country if you get in trouble while you are there.
- Of course, don't get a passport...or try to get out of the US without a Passport. Or try to get INTO another country without a passport.
[/LEFT]
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Old 06-05-2009, 07:17 PM
 
2,153 posts, read 5,536,709 times
Reputation: 655
Quote:
Originally Posted by Niftybergin View Post
Maybe it doesn't really hit you until you look at it like this:

[/LEFT]
Thanks for the cut and paste and adding nothing to this thread. Obviously taxes need to be paid. I didn't state that they shouldn't. Im questioning the amount. The amount of waste that comes out of our taxes is a different story.

Care to add something to the thread other than pasting a chain email you received?
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