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Thread: How does lottery work?

  1. #31

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    Quote Originally Posted by onlyrp View Post
    Ok, I know it's a gambling and guessing game, where the lucky man wins a jackpot of millions.

    My question is this, if the goal is for the government to collect taxes, why not just tax on the ticket purchase, and reduce the allocated prize amount? In which case, you can report the "net" amount, and make it tax free to the winner?

    For example, if the jackpot is $100M, does that mean they sold 100M tickets for $1 each? If so, why not just tax the prize in advance, and declare that, if the effective tax rate is 30%, there's only $70M as prize money claimable, and the winner does not need to report any additional taxes?

    Would that just make too much sense and put too many people out of business?
    States run the lotttery. The Federal government collects income tax.
    .[QUOTE]"Every great new thought was opposed. Every great new invention was denounced. The first motor was considered foolish. The airplane was considered impossible. The power loom was considered vicious. Anesthesia was considered sinful. But the men of unborrowed vision went ahead. They fought, they suffered and they paid. But they won." - Ayn Rand, The Fountainhead[/QUOTE]
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  3. #32

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    Quote Originally Posted by FindLiberty View Post
    Try, "Voluntary tax for mathematically challenged optimists."
    i'm have a math degree and i still bought a lottery ticket. It sure beats putting money into BTC :P

    side note, with your logic and reasoning I should vote for Romney because Ron has no chance of winning.
    Rand Benedict Paul.
    Not only did he sell us out, this douche bag did it to his own father! I'm more upset him selling his father out. I don't care who i think is going to win i would never sell my father out. If his willing to sell his father out what else is for sale?

  4. #33

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    let's hope one of us wins and Ron gets a few million into his campaign's coffers =p

  5. #34
    Member fr33's Avatar
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    Quote Originally Posted by alucard13mmfmj View Post
    let's hope one of us wins and Ron gets a few million into his campaign's coffers =p
    First thing I'd do is finish maxing out my donations :P

  6. #35

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    Oops! Double post.
    Last edited by Carson; 03-30-2012 at 08:41 PM.

  7. #36

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    Quote Originally Posted by FindLiberty View Post
    Try, "Voluntary tax for mathematically challenged optimists."
    Quote Originally Posted by psi2941 View Post
    i'm have a math degree and i still bought a lottery ticket. It sure beats putting money into BTC :P

    side note, with your logic and reasoning I should vote for Romney because Ron has no chance of winning.
    Ron Paul is everyone's only chance of winning!

  8. #37

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    Quote Originally Posted by Carson View Post

    Annnddd.... knowing all this.....I'm in for the big one tonight! A record-breaking $640 million prize.

    That's the way it works in my neck of the woods.
    If you win, you'll probably need a ball washer.
    Quiz: Test Your "Income" Tax IQ!

    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of apportionment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  9. #38

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    Quote Originally Posted by angelatc View Post
    States run the lotttery. The Federal government collects income tax.
    States collect taxes on it too, whether they call it income tax or lottery tax.

  10. #39

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    Quote Originally Posted by The Free Hornet View Post
    A few houses can easily incur real estate taxes of $20,000 annually. A "few cars that you'll never worry about repairing" implies at least 3 leased vehicles at an ongoing cost of $12,000 annually. So before gassing up or turning on the heat at these three houses, $32,000 of a $50,000 budget is already blown. Add $5000 for individual health insurance and $15,000 if you are a family (in good health). If you live off the land and spend nothing else, the government will still borrow $5000 or more annually in your name and create an even greater amount of unfunded liabilities.

    At $50,000/year, people still have to make hard choices about where they live, what they drive, who they support (family). It won't be a Rolls Royce that you park in Manhatten at the four-bedroom penthouse supporting a brood of six kids.

    Considering the taxes, lottery winners are better described as "set up" than "set".

    Lottery is a bad investment: http://www.taxfoundation.org/news/show/1302.htm
    You have a good point. But would you rather have 3 houses and pay $20,000 in property taxes per year? Or have 1 house, and save that $600,000 in your hands? Then you can save another $10-15K a year. And no, I wasn't saying leasing cars forever, although that's an option too. I was thinking replacing a car whenever you like. Not necessarily owning more than one at a time.

    You are not required to have health insurance until it's mandated, and with the money you have, whether it's $600,000 or $300,000 saved and doing nothing, wouldn't you rather take the risks? What do you need to drive if you don't work? Where do you "have to live" if you are not working?

    If $50,000 without having to work is not enough, how much do you need if you are not working? Or, how much do you need if you ARE working? I almost forgot, if you have more than one house, how can renting it out, even after maintainence costs, not pay off your property taxes (I am assuming you paid your house off and no mortgage).

    How much are you currently living on? I wonder.
    Last edited by onlyrp; 03-30-2012 at 11:33 PM.

  11. #40

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    Quote Originally Posted by fr33 View Post
    With 2 million I wouldn't quite be set for life but I'd be comfortable. 20 million I'd be set for life. 200 million my extended family would be set for life. In all cases I'd keep working, just not as hard.
    That's fair.

  12. #41
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    Quote Originally Posted by onlyrp View Post
    You have a good point. But would you rather have 3 houses and pay $20,000 in property taxes per year? Or have 1 house, and save that $600,000 in your hands? Then you can save another $10-15K a year. And no, I wasn't saying leasing cars forever, although that's an option too. I was thinking replacing a car whenever you like. Not necessarily owning more than one at a time.

    You are not required to have health insurance until it's mandated, and with the money you have, whether it's $600,000 or $300,000 saved and doing nothing, wouldn't you rather take the risks?

    What do you need to drive if you don't work? Where do you "have to live" if you are not working?

    If $50,000 without having to work is not enough, how much do you need if you are not working? Or, how much do you need if you ARE working?
    Well some of us are self employed and own some land and have employees. I think you're expressing some tunnel vision in how income is earned. There are so many expenses and debts involved that 2 million really isn't that much money at all.
    Last edited by fr33; 03-30-2012 at 11:39 PM.

  13. #42
    Member donnay's Avatar
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    I got two numbers with the mega ball. LOL!
    *Legal Disclaimer: While I am a keen researcher and want nothing more than to help people, I am not a doctor and more importantly, I am not your doctor. Any article I post that contains general information about medical conditions, treatments and remedies is to bring awareness. The information is not advice, and should not be treated as such. You should never delay seeking medical advice, or discontinue any medical treatment because of information in an article I have posted. The only advice I would give is to continue to research further and use discernment with all advice.

  14. #43

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    Quote Originally Posted by fr33 View Post
    Well some of us are self employed and own some land and have employees. I think you're expressing some tunnel vision in how income is earned. There are so many expenses and debts involved that 2 million really isn't that much money at all.
    How much debt are you in and how much would be enough for you?

    I was speaking specifically, IF you had to work to make money, how much net profit would be worth your time? How much would it take for you to not have to work? If land and employees are such a hassle, don't have them.

  15. #44

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    MEGA MILLIONS - Let the gov't pick you pocket 1 dollar at a time, hey you never know!?

    I'm sick of these long odds scams run by the government, so little time, so many suckers!

  16. #45

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    Quote Originally Posted by Carson View Post
    Ron Paul is everyone's only chance of winning!
    clear thinking wins the day again
    “If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”

    - SAMUEL ADAMS

  17. #46
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    Quote Originally Posted by alsis8xmy View Post
    MEGA MILLIONS - Let the gov't pick you pocket 1 dollar at a time, hey you never know!?

    I'm sick of these long odds scams run by the government, so little time, so many suckers!
    The government is just like the organized crime syndicates they went after in the last century--especially when they realized how much money was in the numbers racket!

    Just like DeNiro says in the movie Casino, "In the casino, the cardinal rule is to keep them playing and keep them coming back. The longer they play, the more they lose. In the end, we get it all."
    *Legal Disclaimer: While I am a keen researcher and want nothing more than to help people, I am not a doctor and more importantly, I am not your doctor. Any article I post that contains general information about medical conditions, treatments and remedies is to bring awareness. The information is not advice, and should not be treated as such. You should never delay seeking medical advice, or discontinue any medical treatment because of information in an article I have posted. The only advice I would give is to continue to research further and use discernment with all advice.

  18. #47

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    Quote Originally Posted by psi2941 View Post
    i'm have a math degree and i still bought a lottery ticket.


    You is? Well good.

    Quote Originally Posted by FindLiberty View Post
    Try, "Voluntary tax for mathematically challenged optimists."
    Nah. Tax on the stupid is better.

    I won't play the lottery unless it's gotten over 300 million. Still dumb to do it. More likely to be struck by lighting twice.
    I just like waving goodbye to money I suppose. It's good to dream.

  19. #48

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    For half a billion dollars I would have gladly thrown a dollar in the wind for a ticket. With inflation that dollar wouldn't be worth much in a few years anyway.
    My 2016 prediction: Hillary Clinton will NOT run for president.

    Rand Paul 2016

  20. #49
    Member Son of Detroit's Avatar
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    The $5 I spent on 5 lines was worth the afternoon of daydreaming and excitement for the drawing that night, even though I knew I wasn't winning.

  21. #50

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    Quote Originally Posted by Victor Grey View Post


    You is? Well good.

    with the same argument you have for the lottery i can say donating to the Ron Paul Campaign is the same thing.
    Rand Benedict Paul.
    Not only did he sell us out, this douche bag did it to his own father! I'm more upset him selling his father out. I don't care who i think is going to win i would never sell my father out. If his willing to sell his father out what else is for sale?

  22. #51

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    Quote Originally Posted by alsis8xmy View Post
    MEGA MILLIONS - Let the gov't pick you pocket 1 dollar at a time, hey you never know!?

    I'm sick of these long odds scams run by the government, so little time, so many suckers!
    why aren't you sick of the suckers instead?

  23. #52

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    Quote Originally Posted by fr33 View Post
    I call the lottery "the tax on stupid".
    State-run lotteries are indeed a tax on stupidity -- which is in general a good thing to tax. However, as the stupid tend not to have very much money, its revenue potential is extremely limited.

  24. #53

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    Quote Originally Posted by psi2941 View Post
    i'm have a math degree and i still bought a lottery ticket.
    LOL! That reminds me of a friend who actually has a PhD in math, but couldn't afford a down payment on a house until he won a medium-sized lottery prize! True story.
    side note, with your logic and reasoning I should vote for Romney because Ron has no chance of winning.
    Nah. The supply of your vote is fixed. Think about what that implies.

  25. #54

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    Quote Originally Posted by Roy L View Post
    LOL! That reminds me of a friend who actually has a PhD in math, but couldn't afford a down payment on a house until he won a medium-sized lottery prize! True story.

    Nah. The supply of your vote is fixed. Think about what that implies.
    Haha, funny story.

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