2006-10-05 11:02:46 · 9 answers · asked by bigsexy 1 in Business & Finance ➔ Taxes ➔ United States
Because the IRS needs their money to help keep the rich........rich.
I don't know if all states are alike, but CA doesn't tax you on CA lottery winnings. They will tax you if you won another state's lottery though
2006-10-05 19:32:54 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Because the tax code (passed by Congress and signed by the President) defines these winnings as taxable income. If you don't like it, write your congressperson. Also, you should include a suggestion for replacing the tax revenue lost if that provision is repealed.
2006-10-05 11:51:02 · answer #2 · answered by Jim H 3 · 3⤊ 1⤋
We don't in the UK. We only pay tax on the interest the money earns in the bank.
2006-10-05 11:12:22 · answer #3 · answered by sarch_uk 7 · 0⤊ 1⤋
16th amendment: The congress shall have the power to lay and collect taxes on incomes, from whatever source derived
They exercised that right.
2006-10-05 11:56:50 · answer #4 · answered by STEVEN F 7 · 0⤊ 1⤋
The good news is that you are allowed to deduct any loses that you can prove you had up to the amount of your winnings if you itemize your deductions.
2006-10-05 18:00:22 · answer #5 · answered by ? 6 · 0⤊ 0⤋
Because the government taxes us to death. If they could figure out how to put a meter on the sun, we would be paying for daylight too. lol
2006-10-05 11:10:09 · answer #6 · answered by Island Queen 6 · 1⤊ 4⤋
You can deduct your winnings up to your losses. but its a red flag.
2006-10-08 14:58:26 · answer #7 · answered by linluv2001 2 · 0⤊ 0⤋
Because it's considered part of your income.
2006-10-05 11:07:19 · answer #8 · answered by bipolargandolf 2 · 1⤊ 0⤋
Why do you think you should have it tax free?
2006-10-05 14:15:12 · answer #9 · answered by misslabeled 7 · 0⤊ 3⤋