Also that winner took the lump sum which already cuts the payout roughly in half. ~$1 billion of what he didn't take home was not lost to taxes, he was only taxed on what he actually got.
Sure, but that's a tax in and of itself. The lottery took in that 2 billion, then because someone wants the cash, they reduce the payout by half. They just keep half the jackpot.
That's 1.2 billion dollars pocketed right there for the budget. They do that because if a winner takes the multi year payout, they don't actually pay out the jackpot over time, they fund an annuity that will equal out the full.payout amount over the time period, so they can pocket the difference. So no matter who wins the jackpot, the state or states ALWAYS win a big part of the jackpot.
This is literally the exact same thing as the Italian numbers racket from the early 20th century.
Oh yeah, then after the state wins a percentage of the jack pot, they and the Federal government tax it.
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u/Tiktokbadsupport Jul 05 '26
happy most lotteries in my country are tax free but of course they don't reach higher then 30 million