I think the final answer on this tax topic is something better than 39% or so.
http://finance.zacks.com/tax-lotto-w...rnia-9294.html
They will keep 25% instantly and the rest is when you file properly. If you are not a citizen or not declare your status they keep instantly 30%. If you are citizen but you do not give social security number its 28% and then later the filing etc must happen. If you have social security number/legal resident etc and are not a citizen yet,probably 39% total as you file anyway eventually same as a citizen. Imagine if one claims to be a tourist or any foreigner temporarily located in US lol and then they get taxed also in their own country lol beyond that 30%. I dont know then (good problem to have anyway but you know what i mean, it might be very brutal). What happens to eg foreign poker winners of the big prizes in WSOP for example? Do you know?
Bottom line it appears that you cant avoid a 30-39% cut that is a horrible blow for sure on something that has already been taxed at the creation of the prize because they are not going to put for example more than 15% of what they will receive in tickets this next drawing in the less than jackpot category of prizes or more than 60 % in the jackpot.
You see the jackpot was 950 yesterday at the end with 405 mil tickets bought at 2 each. It was 528 mil the previous drawing and 334 the one before.
Using the number of people that scored 1+1 or just the power-ball number 0+1 one can use combinatorics to find the number of tickets sold that they tend to avoid to give in their official links for some reason (wonder why lol i cant find it directly there and you see it only occasionally on TV reports etc).
So on the move from 528 to 950 yesterday they took 405*2 minus expenses for vendors and process/ equipment that i doubt its that big and that is say 810 mil minus the expenses. But the prices they gave back were 117 million in the non jackpot part. The jackpot increase was 422 mil. So where is that other 810-117-422=271 mil going? Like hell this is all expenses. I doubt its even 25% of that which is expenses. The other 75% is of course kept for other legitimate functions that the lottery always ought to support or other tasks related to its operation/sustainability etc (i think state education programs etc, correct me if i am wrong and i miss something, i doubt it though).
So they keep this 271 mil from what goes back to people. But its not only that. They also never pay the jackpot in full, although they have allocated the money for it in there (the way they claim it). They would only pay say 6/9 or 5.5/9 i think in full cash award (the rest only in annual payments but of course imagine giving someone 950 mil to pay you in 30 years what they can do with it until then to generate so much more. They can put it in the safest possible instrument all over the best countries of the planet and earn at least what 2%/year which is easily 50% more money by then if one chose that option?).
So you only get 60% of the jackpot paid in one sum. What happens to the other 40%???? Who takes that??? Seriously 40%, where is this going??? Do they keep for education etc in the end 55% of all sales? That is fine with me if so (it is supposed to be the main reason to have a lottery anyway) but damn it, declare it somewhere and be proud of it, dont play with numbers in my opinion in evasive and confusing ways as if trying to hide the truth.
Are you kidding me then to want to also tax it after that? So not only you only get a fraction of the total ticket sales to go there (explain the 271 missing at first level) but you also never pay another 40% of it (ie money they already have in their pocket supposedly allocated for the jackpot). And then the taxation takes another 39% or at best 30% depending on various details.
So basically my question is this?
WTF is this scheme? Why is taxation even taking place after all this prior shaving?
Last edited by masque de Z; 01-10-2016 at 07:22 PM.