That takes something from being completely unreasonable to be understandable.
Why would taxing a gross income of above a billion US$ by ~66% be “completely unreasonable”? Imo taxes for such incomes should generally be higher if anything.
Yeah, obviously that should go for everyone. I realize it’s currently not very realistic in most countries, but I maintain that it would be reasonable. It’s also not without precedent, even the extremely capitalist US had top income taxes of above 90% from the mid-40s to the early 60s.
When you win the lottery you have two options:lump sum or annuity. If you take the lump sum you basically get half the advertised amount and then pay taxes on that. If you take the annuity, you are paid out over 30 years and you pay taxes on each payment. It’s also setup where they pay you more each year over the pay period.
If you go to USA Mega, you can see jackpot analysis for PowerBall and Mega Millions where you can see the complete breakdown on the payments.
Not being from the US I didn’t know that. That takes something from being completely unreasonable to be understandable.
I can’t believe some fake rich guy on the internet lied to us!
Still, if they’re not idiots the winner doesn’t have to work again so they’re still good.
Why would taxing a gross income of above a billion US$ by ~66% be “completely unreasonable”? Imo taxes for such incomes should generally be higher if anything.
Because that’s not how it works. It would be great if that was how it worked for all billionaires but it isn’t.
Taxing 66% of the winnings of someone who was previously not wealthy is unreasonable if you don’t also tax other rich people at the same rate.
Yeah, obviously that should go for everyone. I realize it’s currently not very realistic in most countries, but I maintain that it would be reasonable. It’s also not without precedent, even the extremely capitalist US had top income taxes of above 90% from the mid-40s to the early 60s.
When you win the lottery you have two options:lump sum or annuity. If you take the lump sum you basically get half the advertised amount and then pay taxes on that. If you take the annuity, you are paid out over 30 years and you pay taxes on each payment. It’s also setup where they pay you more each year over the pay period.
If you go to USA Mega, you can see jackpot analysis for PowerBall and Mega Millions where you can see the complete breakdown on the payments.
You can take a lump sum payout or get it paid to you over 20 years. The lump sum is usually around 60% as the other poster said.
If you live in Canada as well lottery winnings aren’t taxed so you get the whole lump sum. Other countries probably vary too
I don’t think that you are taxed on lottery winnings in the UK either.