They all get $250k. That's part of why not all of the sales proceeds go into the jackpot.
That's cool. So that's 16.75mil in payouts right there.
They all get $250k. That's part of why not all of the sales proceeds go into the jackpot.
One thing you're forgetting about is all the non-jackpot payments they have to make each time. For example the non-jackpot winnings yesterday totaled $45M. The one before that was $20M.MB, so lemme get this strait.
For a jackpot that people have paid in $753,400,000, you will be "awarded" $355M, you need to pay a "penalty" for taking it out all at once (Say, 80% of full value?) and then pay 50% in taxes.
So $355M -> $134M in pocket.
$619M goes away. Nice.
I know that half of the value of the original is directly slated for things like education, but being taxed on something like this is just horrible.
Every dollar that went in there was taxed to start with AND half of it was taken in the first place!
The $$ the government gets from this is so small compared to what is needed, but yet no politician has taken this up as a possible winning strategy for election. The net effect for making these municipal lotteries tax-free would be minimal, but people would think the guy was God (even though most would never see a penny from it).
I hate the Lottery system...![]()
I don't think you understand how the lottery works. The jackpot doesn't reset every time. If no one hits the jackpot it keeps going higher. And #s are only valid 1 time only.
But yes there were 229,421,186 picks sold for the $355M drawing.
Here's the progression:
Date...............Sales................Jackpot (millions)
1/4/2011........$229,421,186.........$355
12/31/2010.....$121,535,218.........$242
12/28/2010.....$57,470,434..........$200
12/24/2010.....$55,640,233..........$168
12/21/2010.....$42,033,969.......... $145
12/17/2010.....$37,827,825.......... $123
12/14/2010.....$31,269,168........... $104
12/10/2010.....$26,710,064 .......... $88
12/7/2010.......$23,220,936........... $74
12/3/2010.......$23,046,641........... $62
11/30/2010.... $19,803,778............. $52
11/26/2010.....$17,471,759............ $42
11/23/2010.....$18,086,478 .............$34
11/19/2010.....$18,590,582 ............ $25
11/16/2010.....$16,597,993............ $16
11/12/2010.....$17,689,735 ........... $12
Yeah it's actually the largest (unadjusted) ticket sale for the history of MM, although for the last couple years they've been in a lot more states than when it started.HUGE spike when the jackpot is near $250M.
and SUPER huge when $300M+
HUGE spike when the jackpot is near $250M.
and SUPER huge when $300M+
I don't think you know how to read - I never said the jackpot resets every drawing, nor did I say the tickets are valid for more than one drawing.I don't think you understand how the lottery works. The jackpot doesn't reset every time. If no one hits the jackpot it keeps going higher. And #s are only valid 1 time only.
Nobody pays any penalty. The jackpot that is advertised is based on a 26-year annuity. The actual cash jackpot was ~$220M-whatever (too lazy to check). You're thinking of it the wrong way - ~$220M isn't penalized down from $355M, but rather $355 is calculated based on interest and the ACTUAL jackpot - ~$220M.MB, so lemme get this strait.
For a jackpot that people have paid in $753,400,000, you will be "awarded" $335M, you need to pay a "penalty" for taking it out all at once (Say, 80% of full value?) and then pay 50% in taxes.
So $335M -> $134M in pocket.
$619M goes away. Nice.
I know that half of the value of the original is directly slated for things like education, but being taxed on something like this is just horrible.
Every dollar that went in there was taxed to start with AND half of it was taken in the first place!
The $$ the government gets from this is so small compared to what is needed, but yet no politician has taken this up as a possible winning strategy for election. The net effect for making these municipal lotteries tax-free would be minimal, but people would think the guy was God (even though most would never see a penny from it).
I hate the Lottery system...![]()
No need to be an asshole about a misunderstanding when I'm trying to helpI don't think you know how to read - I never said the jackpot resets every drawing, nor did I say the tickets are valid for more than one drawing.
Meh, when you talk down to me you get the asshole.No need to be an asshole about a misunderstanding when I'm trying to help![]()
Meh, when you talk down to me you get the asshole.
Wow, that sounded gay.
um yeah.. nevermindMeh, when you talk down to me you get the asshole.
Wow, that sounded gay.
You may want to double check your math. There's a federal tax of 25% on the jackpot, the expected value was probably under $1.30.If there was some way to be sure the plot isn't split, the expected value of $1 is about $1.60 (after taxes in my state), not bad at all. Except that it then goes below $1 if the pot is split, and with this many people playing, it seems highly likely.
One thing you're forgetting about is all the non-jackpot payments they have to make each time. For example the non-jackpot winnings yesterday totaled $45M. The one before that was $20M.
I don't know all of the details though. I know if you really want to learn how it works all of the information is publicly available.
Also there is no sales tax on lotto tickets.. I'm not sure if that's what you were getting at when you said "Every dollar that went in there was taxed to start with"
But my point was not that. What I was saying is that if every dollar that is spent on this has already had a chunk taken out for Federal, State and other taxes, SS, and things, why do they tax the winnings as well? Isn't that double dipping?
Nobody pays any penalty. The jackpot that is advertised is based on a 26-year annuity. The actual cash jackpot was ~$220M-whatever (too lazy to check). You're thinking of it the wrong way - ~$220M isn't penalized down from $355M, but rather $355 is calculated based on interest and the ACTUAL jackpot - ~$220M.
And yes, the point of the jackpot is to make money mostly education. And not for the people that buy the tickets, mostly education. Obviously.
Even worse, if you invest your winnings, don't you have to pay taxes on capital gains? I may be wrong, don't know much about the subject.
The triple-dip!
Even worse, if you invest your winnings, don't you have to pay taxes on capital gains? I may be wrong, don't know much about the subject.
The triple-dip!
You would, but only when you sell the asset (stock/bond).
