Damn is it really like 80% tax
this post was submitted on 08 Mar 2025
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it was a $2.04b jackpot. would have paid out that much as an annuity over like 25 years or something. taxes would have been withheld from those payments.
the 'lump sum' option was $997.6m, which is what the winner opted for. after taxes the amount received was actually $628.5m.
https://www.yahoo.com/news/2-04-billion-powerball-winner-200153929.html
whoever pulled the $424m out of their backside took another dose of taxes out of the payment that already had taxes deducted.
They did that to make it sound worse than it is.
Wait a minute... Are you suggesting someone on the internet lied for attention?! I don't believe it!
The way it works in America is that the amount they tell you is after a 30 year annuity, so you obviously get a lot of interest there. It also lets them bump their numbers up which makes it more attractive I guess. Currently Powerball is at 320 million with a cash value (or lump sum) of 150 million. After that you get taxed and knocked down more so you might end out taking home around 100 million. As someone who has not won, I can say that sounds like bullshit, but if I did win, well I wouldn't be complaining. What would I use the extra money on anyhow? Get some dude who wears orange facepaint the presidency? Hard pass. I'd have to be a gigantic friendless turbo nerd to do some shit like that.
if you're poor when you get the money, you still get taxed for being poor, and the sin of class mobility. only money made AFTER you get rich is safe.
Could you withold from being taxed from your lottery win until you get a lawyer to put all that money into a tax haven, and then pay the tax in pennies? I mean, if billionaires could get away with stashing their money into offshore and tax havens and pay pennies in taxes, why couldn't this instant billionaire do the same?
The reason it gets cut down so much is the advertised jackpot is the 25 year pay over time annuity amount. You get only about half if you take lump sum. And THEN that's taxed at a high bracket.
Can't have the peasants luck-ing into their class. It would mean their ruse is revealed.
Doesn’t matter, your life will be ruined either way by everyone around you that wants a piece of the pie.
Life pro tip: don’t win the jack pot. And if you do, keep it as much a secret as possible.
There's a guide out there about what to do if you win.
Basically, tell nobody before you talk to a senior partner in a big law firm, get trusts set up for yourself and the people in your life so everybody is looked after and you can't fall below a decent living wage even if you fuck the rest up. This also stops people hounding you for a slice and destroying your relationships.
Then there was stuff about setting up investments, and setting aside some spending cash.
Personally I'd want to put most of the "investments" into various mutual aid projects to build lasting social stability rather than using it to further the stock market, but other than that it's pretty good advice.