This really grabbed my attention the other day when I was watching the news. A person had won the powerball drawing which was, I think, $330 million. Anyway, the news reporter said after taxes, if this person chose the lump sum payment, would be roughly $146 million.
My question is, after paying over a million dollars in taxes, should that person ever have to pay taxes again?
How can they justify taking over $100 million in taxes from someone and still demand them to keep paying taxes after that?
I personally think it's insane to take that much from someone and still demand more after the fact.
2007-08-29 20:08:50 · 3 answers · asked by Anonymous in Politics & Government ➔ Government
i agree with you that the taxes he had to pay are unjust , ron paul is the only one with the right answer , abolish the irs and go to a flat tax
2007-08-29 20:17:40 · answer #1 · answered by Anonymous · 1⤊ 1⤋
First, they did not pay over $100M in taxes. The jackpot was $330M, by taking a lump sum payment instead of the annuity. The winner gets approx 55-60% of the jackpot amount. About 183M.
Then they pay federal income tax on that amount at the highest income bracket.
They would not continue to pay any more taxes on that amount, but would pay additional taxes on any interest that that money accrues while sitting in a bank or invested.
So they acctually only paid about $40M in federal taxes. Depending on the state they would also owe state income tax.
2007-08-30 06:23:55 · answer #2 · answered by Dennis F 7 · 0⤊ 0⤋
Move to Sweden or the Grand Bahamas and you'll not have to pay taxes on that money to the US.
2007-08-29 20:20:01 · answer #3 · answered by AO099 2 · 0⤊ 2⤋