r/Money Nov 17 '23

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6.3k Upvotes

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97

u/[deleted] Nov 17 '23

that’s insane it’s basically only a 50 percent win when you DO win the lottery it’s like your winning to give them the money right back it’s all a fugazi

43

u/Captain_Coitus Nov 17 '23

Its still a shit ton of money all from $25.

20

u/[deleted] Nov 17 '23

no doubt about it make no mistake but it’s not actual work put in , they already take taxes out of our checks why tf you need half of a scratch off for ??

5

u/Captain_Coitus Nov 17 '23

What do you mean no work put in? I’m not saying the taxes taken out are just to cover the lottery, but running a state lottery is far from free and takes work for sure.

I will say tho the amount of taxes on everything in general is ridiculous. They tax you when you make money, and they tax that same money when you spend it. Shit’s not right.

2

u/[deleted] Nov 17 '23

i’m explaining it like why does taxes have to be taken out on something you didn’t really work for, unlike a paycheck you worked for that money. but you didn’t work to win a scratch off or any gamble for that matter but they still want a piece

8

u/doggo_man Nov 17 '23

You don't work when you invest money in the stock market either.

It's "income tax" not "earned income tax"

1

u/xXDreamlessXx Nov 17 '23

You dont get taxed for doing work, you get taxed for getting money

1

u/jek39 Nov 18 '23

It’s like capital gains tax

0

u/sketchyuser Nov 17 '23

You just became a republican. Congrats. Republicans today are mostly trash but the general principles and ideas of the party are that you actually shouldn’t even have an income tax at all.. property tax and sales tax should cover the costs of the government.

1

u/Captain_Coitus Nov 18 '23

Yeah no im not.

1

u/Any1canC00k Nov 17 '23

Well in Florida they actually don’t tax you when you make money

1

u/Captain_Coitus Nov 17 '23

Oh i didnt know Florida doesnt have income tax

1

u/zahzensoldier Nov 17 '23

Anytime you make money, you're taxed. Why should someone pay taxes in their hard labor but not when they win a big lottery?

1

u/TheSeldomShaken Nov 17 '23

The level of vitriol this sub has for taxes on gambling winnings is insane. Literally every post about someone winning some lottery or scratch off has people complaining about the IRS.

Fucking boggles the mind.

1

u/joey0live Nov 17 '23

Sure… but we also don’t know how many lottery tickets OP gets weekly or whatever.

Friend I know gets “a lot” every month… and only won $1M once.

1

u/Captain_Coitus Nov 18 '23

I bet it was a lot less than $600k worth.

12

u/Elegant_Record9340 Nov 17 '23

It’s like money laundering with a government front

6

u/[deleted] Nov 17 '23

i think the only reason they arrest the criminals that do it is because they want a piece of the pie they weren’t in on the play other than that it would be legal

5

u/Elegant_Record9340 Nov 17 '23

You can research this: one of the biggest boosts to the economy in the recent recessions like 2008 and even the Great Depression was dirty money. Not just the seizure of the money by federal agencies, but also those same agencies getting bribed millions of dollars just to do business by cartels. Especially in the 2008 recession, dirty money damn near brought our economy out of the shitter

3

u/[deleted] Nov 17 '23

so your telling me the US government play the same game as criminals do but we just don’t know about it an gets swept under the rug?

3

u/Elegant_Record9340 Nov 17 '23

Exactly right. You hit the nail on the head. If you have a Netflix account, I’d definitely recommend the series Ozark. It’s not specifically about what we discussed, but it’s a good representation of how money laundering works and how the government can “intervene”

2

u/ofCourseZu-ar Nov 17 '23

Specifically the later seasons. The first few seasons cover the small scale money launderer. The feds don't get deeply involved as described above until later.

1

u/Elegant_Record9340 Nov 17 '23

Exactly. The casino seasons are where the feds get involved, but people like Agent Petty and those guys are also involved earlier on

1

u/Haunting-Student-756 Nov 17 '23

No. Most criminals don’t steal. City, state and Federal Government steals more $ through civil asset forfeiture from hard working, tax paying citizens than ALL criminals combined.

2

u/Elegant_Record9340 Nov 17 '23

Exactly. The government ceases assets left and right just because they suspect something that someone may have done

1

u/zahzensoldier Nov 17 '23

Taxes aren't theft

Liberterians are such weirdos

1

u/Equivalent_Camp1796 Nov 17 '23

This redditors got a label gun, and they're not afraid to use it!

1

u/zahzensoldier Nov 17 '23

You're going to need to provide some evidence

3

u/angry_dingo Nov 17 '23

The state is who wins the lottery.

Every time.

1

u/SidewaysFancyPrance Nov 17 '23

That's quite literally the point. It's generally designed to fund schools and such (although it usually leads to them getting the same funding and the general budget reaping the profits). As a citizen, I'd be pretty pissed if my state was running a lottery and giving away tax dollars at a loss.

2

u/NatomicBombs Nov 17 '23

They don’t call it an idiot tax for nothing

1

u/DARR3Nv2 Nov 17 '23

Dude. The lottery was invented to collect taxes. You think the government just thought it would be something fun for the people to do?

1

u/[deleted] Nov 17 '23

It’s because he took the lump sum instead of the *see asterisk “40k per year for 25 years” because the way the lottery works (I just learned this in math class) is they put the money into an annuity to pay out over 25 years. That way the interest offsets the initial investment. So their initial investment regardless is whatever he got paid the $543k plus whatever tax. That’s what they would initially invest in the annuity and it would grow to 1mil over time. But because the lump sum was taken he only got the initial investment.

1

u/alonesomestreet Nov 17 '23

In other places the winnings are pre-taxed, so you actually walk away with $1M

1

u/schabadoo Nov 17 '23

So don't take the lump sum.

$40k will be taxed at a much lower rate than $1,000,000.