What that $1.4 Billion Lottery Means to the Federal Government
If you take the Immediate Cash of $868 Million
Without Financial Planning the 2015 tax is 39.6%
Leaving you with $524.3 Million
The Government wants all $ to eventually come back to the Feds, thus
Without Financial Planning the Feds take another 40% or $209.7 Million when you die.
Leaving your family with $314.6 Million
And the Feds take a total of $553 Million of the $868 pay out.
This is before your State takes it's bite.
But wait, there's more!
Remember the Government already takes 40% from all Ticket Sales before the prizes are given
Thus the Government already took $579 Million* from Ticket Sales before winners were paid.
Thus the Government gets $1.13 Billion and your family gets $314.6 Million.
In the end, the total Government take is 78.3%* of ticket sales.
The Lottery is a Poor Tax. Have you Paid your Poor Tax this week?
*Total ticket Sales: $868 is 60% of $1447. $1447-$868 =$579
*$1,447 Million total ticket Sales, Family $314.6 is 21.7%
* Yes this is simplified. But, it is the Governments ultimate goal.