The lottery and social despair in America

[Chomsky]

Could be the differences in the way winnings are taxed and how and when those taxes are levied. You win a multimillion dollar jackpot in the US and most folks are going to take the "give it to me now" option. That immediately reduces what you get to half the prize money. Then the state and federal government wants their piece. That reduces the already reduced prize by half to three quarters. Then the family, exes, friends and con artists show up to the party and that million dollar home you just signed onto now puts you in debt.

Yep, which is why I'd take the lump sum anonymously.

The problem with the payments is you will firstly lose value of the future payments to inflation.

Secondly, you lose the future value and opportunity cost over the 20 years of the lump sum. A lump sum invested wisely over 20 years can show quite a profit! Just look at the generic S & P value over 20 years! But of course if you lack discipline, then it would seem the payments will at least keep you alive and partially solvent for two decades. But I wouldn't do it.

 

[Hari Seldon]

No, it says precisely what you were arguing against.

Top federal rate is 39.6%, top state rate is 8.8% which is under 50%. In addition 10 states as well as Puerto Rico have a zero tax on lottery winnings. I think you need to work on your reading comprehension.

 

[vesper]

There was a joke in the Bandera Times (now defunct) where a local rancher had won the Texas state lottery grand prize. When asked what he would do with all of that money he replied that he would "just keep right on ranching until it was all gone".

The way ranchers have been treated here of late, there's a lot of truth in that.

Gosh I was just sitting here daydreaming what I would do with such a huge pot. Man what a responsibility! I have a list of charities for starters and family would be a second priority but when it came to the grandkids, I sure wouldn't be passing large amounts of cash to them until they completed their college and working at a career. And then only in allotments a little at a time for fear it would ruin them. Oh well it was fun to daydream for a moment.

 

[clownboy]

Yep, which is why I'd take the lump sum anonymously.

The problem with the payments is you will firstly lose value of the future payments to inflation.

Secondly, you lose the future value and opportunity cost over the 20 years of the lump sum. A lump sum invested wisely over 20 years can show quite a profit! Just look at the generic S & P value over 20 years! But of course if you lack discipline, then it would seem the payments will at least keep you alive and partially solvent for two decades. But I wouldn't do it.

Once again, that option is not on the table.

 

[Chomsky]

That's actually a good idea, the incorporation that is.

I tell people if I won I would buy a cabin in Kettle Falls (a town in the remote northeast corner of Washington state) and live as a hermit. a hermit who can buy the modest things he wants without suffering.

of course I never buy lottery tickets, and apparently I'm wierd because I can cover thousands of dollars in emergency expenses.

Probably because you never wasted your money on lotto tickets! :mrgreen:

And besides anonymity, corps provide a huge number of tax advantages as well as insulation from liability.

 

[akrunner88]

This is the second post in which you've insulted all those who play the lottery, but yet you admitted to buying tickets! Time to knock off the ridiculous superior, elitist insults, your behavior shows that you're the same as everyone else. Move on to posting what you're going to buy if you win.

I've spent roughly $0 dollars on lottery tickets the last five years with the exception of today when I spent $4 on two Powerball tickets.

I'm not talking about casual players like yourself. I'm talking about poor people who don't have much income to begin with spending all their discretionary spending money on lottery tickets as their backup plan.

 

[clownboy]

Top federal rate is 39.6%, top state rate is 8.8% which is under 50%. In addition 10 states as well as Puerto Rico have a zero tax on lottery winnings. I think you need to work on your reading comprehension.

Read the damn article. I posted a quote for you, but you should read the whole thing.

 

[vesper]

Did not buy a ticket.

It is a shame that so many people who should not be wasting money...are.

A ticket with all the bells and whistles added to it cost 3.00. A cup of Starbucks cost more. Someone who needs it could very well be a big winner tonight. But we know that winner won't be you.

 

[clownboy]

I've spent roughly $0 dollars on lottery tickets the last five years with the exception of today when I spent $4 on two Powerball tickets.

I'm not talking about casual players like yourself. I'm talking about poor people who don't have much income to begin with spending all their discretionary spending money on lottery tickets as their backup plan.

It's not just the poor. Old folks, they play in hopes of leaving a huge nest egg behind for their families.

 

[Hari Seldon]

Read the damn article. I posted a quote for you, but you should read the whole thing.

Just for clarification, what was "I arguing against"?

 

[akrunner88]

It's not just the poor. Old folks, they play in hopes of leaving a huge nest egg behind for their families.

I think that's a little bit different when you're older and have been through life and are gonna be calling it quits soon anyway. If I was so poor that I had trouble filling my gas tank every week (that's if I even owned a car) the LAST thing I would be spending my cash on is lottery tickets.

 

[nota bene]

I can't imagine winning millions and millions and would be very happy to be a "hundred thousandaire." But you will know soon enough if I win because suddenly there will be medical buildings all over the country named after me: B. Anonymous.

:lamo

Most of what I desire most can't be bought, unfortunately. But what a gift to have "enough"--enough not to worry ever again, enough to provide wisely for family, and enough to make a difference in this world.

What would I buy for myself? Truthfully? Dirt. I lust for dirt. Heaping mountains of dirt because I live in a flood plain.

 

[ttwtt78640]

I think that's a little bit different when you're older and have been through life and are gonna be calling it quits soon anyway. If I was so poor that I had trouble filling my gas tank every week (that's if I even owned a car) the LAST thing I would be spending my cash on is lottery tickets.

Which is likley why you are not poor.

 

[Mycroft]

I haven't bought any lottery tickets, but if nobody wins this time around, I might buy a couple.

The thing is, the winnings cannot buy me what I really need...which is for my heart to become as healthy as it used to be.

 

[Ray410]

I've spent roughly $0 dollars on lottery tickets the last five years with the exception of today when I spent $4 on two Powerball tickets.

I'm not talking about casual players like yourself. I'm talking about poor people who don't have much income to begin with spending all their discretionary spending money on lottery tickets as their backup plan.

So what are you going to buy if you win?

 

[Chomsky]

Not me - I am going to play lottery professionally from then on. When (**** if!) I win I am going to buy more lottery tickets than anyone else ever did, get in the record books and win me some more!

Funny story about this.

A long time ago, maybe 25-30 years ago when lottos were relatively new, someone started a mutual fund in Australia dedicated to waiting until the jackpot became large enough, and the fund was funded well enough, that they could guarantee a win!

After some time, everything aligned and the pulled the trigger!

... only to find there was a multi-winner split with more winners than they anticipated, and they lost money! :mrgreen:

I believe they folded not too long after that. :2razz:

 

[clownboy]

I think that's a little bit different when you're older and have been through life and are gonna be calling it quits soon anyway. If I was so poor that I had trouble filling my gas tank every week (that's if I even owned a car) the LAST thing I would be spending my cash on is lottery tickets.

True, but you're not a gambler, obviously. Should folks be free to choose that risk? Or should we tell folks, I'm sorry, you're too poor, we won't allow you to take risks, you can't join the other reindeer games.

 

[vesper]

I can't imagine winning millions and millions and would be very happy to be a "hundred thousandaire." But you will know soon enough if I win because suddenly there will be medical buildings all over the country named after me: B. Anonymous.

:lamo

Most of what I desire most can't be bought, unfortunately. But what a gift to have "enough"--enough not to worry ever again, enough to provide wisely for family, and enough to make a difference in this world.

What would I buy for myself? Truthfully? Dirt. I lust for dirt. Heaping mountains of dirt because I live in a flood plain.

:lol: That was sweet! Tell you what Nota if I win big I'll buy you a mountaintop!

 

[radcen]

The lottery is up to a record breaking jackpot did you buy a ticket?

The lottery and social despair in America - World Socialist Web Site

When it gets to $400-ish million and above I play $10. I don't play otherwise. I don't see that as a big deal.

 

[radcen]

Btw, it's the same with casino jackpots. A close friend won one of those million dollar slot pulls. He said he was over the moon - until he went to collect. They pay it over 30 years and reps from the IRS were right there at the casino with their hands out. Then he got a call from the state two days later.

Why does anyone think they get to keep 100% to begin with? Where did that non-tax fantasy come from?

 

[Chomsky]

Sorry, not an option. Your identity, by lottery rules, is public knowledge. They won't keep it secret.

Yes, they need a representative, but that rep may not necessarily be the individual who purchased the ticket.

Identity requirements vary state by state for individuals, but I believe they all accept incorporation.

Where I live someone must show-up, but they allow the corporate representative (i.e. lawyer or other) to be that person if the ticket is held via a corp or other entities. I could see a trust working, too. Best part is, you can create the legal entity AFTER you've ascertained you have a winning ticket!

It might be the one time I'd be happy to see corporate personhood.

Check it out:

Chicago Tribune: The secret millionaires next door

 

[Crosscheck]

Good grief, the tickets are $2. Some of you are acting like we are dumping $500 on this. Sure there are the individuals who go hog wild but most people I know only buy a couple tickets.

For those so fiscally conservative I hope you never go to a sporting event and buy a beer or buy a latte.

 

[Chomsky]

Meh, I'm not worried. I know a pretty good accountant.:lol:

Just don't pay too much for that carpet! :mrgreen:

 

[Lutherf]

Just don't pay too much for that carpet! :mrgreen:

Oh it'll be nice carpet but what will really cost will be the yacht it goes in.:lol:

 

[Chomsky]

There was a joke in the Bandera Times (now defunct) where a local rancher had won the Texas state lottery grand prize. When asked what he would do with all of that money he replied that he would "just keep right on ranching until it was all gone".

:lamo