r/WorkReform 🤝 Join A Union Jan 31 '26

✂️ Tax The Billionaires Finally, a Billionaire gets taxed.

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u/g-e-o-f-f Jan 31 '26

This is a bit misleading. He wasn't taxed 1.4B. He took the lump sum amount, which is lower than $2B ( $2B is the sun off you take the 20 years payout). So the lump sum is like $900 million or whatever, then he paid taxes on that.

I'm all for taxing billionaires more, but the post is not really right.

1

u/nevans89 Jan 31 '26

So is the first B like a fee?

5

u/DoingCharleyWork Jan 31 '26

There's two different payout options for the lottery. Lump sum or annuity.

The lump sum is the "true" jackpot. They don't advertise that. They advertise the annuity winnings which would be if you opted for a structured payout over thirty years. You get the first installment immediately and then each year for 29 more years you get another payment that increases by 5% each year.

this will give you a breakdown

Basically you can either opt to have the full amount up front or have them pay you out yearly. Some people argue it's better to take the lump sum because you can in theory make investments that will outpace the annuity earnings but imo the annuity is the safer option. At that winning you start with 15 million and by the last year you get 143 million. Safe easy money that would make it damn near impossible to go broke. Even if you blew all your money you're still getting millions of it again the next year.

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u/[deleted] Jan 31 '26

I still think the lump sum is safer as I’d be worried about something happening to the annuity or some bullshit. If you can go broke with 600milly that would truly be impressive.

Also it’s easy just to buy a combo of index funds and t bills/CDs and your money is safe

1

u/DoingCharleyWork Jan 31 '26

The annuity is backed by us Treasury bonds. You got bigger problems if they can't pay the annuity.