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Re: Why are lottery winnings taxed
Old 01-17-2007, 12:05 PM   #21
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Re: Why are lottery winnings taxed

They're taxed because they can be, and nobody will feel at all sympathetic to someone who won $200M and had to pay a lot of taxes.
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Re: Why are lottery winnings taxed
Old 01-17-2007, 12:31 PM   #22
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Re: Why are lottery winnings taxed

Quote:
Originally Posted by Cute 'n Fuzzy Bunny
They're taxed because they can be, and nobody will feel at all sympathetic to someone who won $200M and had to pay a lot of taxes.
Quote:
Originally Posted by Ed_The_Gypsy
The Canadians do not tax their lottery winnings. But, if I win, I still have to pay in the US.
Ed, would our American patriotism really survive winning $113M?

I'd seriously consider dropping my passport in the return mail on my way to the nearest Thai massage parlor...
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Re: Why are lottery winnings taxed
Old 01-17-2007, 06:27 PM   #23
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Re: Why are lottery winnings taxed

Lotteries are a huge revenue generator for the state making up about 2% of all state revenue and as much as 8% for some states. When viewed appropriately as a regressive tax scheme, it makes perfect sense that the government minimizes its losses by taxing distributions.

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Re: Why are lottery winnings taxed
Old 01-17-2007, 10:31 PM   #24
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Re: Why are lottery winnings taxed

Quote:
I'd seriously consider dropping my passport in the return mail on my way to the nearest Thai massage parlor...
No joy, Nords. Even if one renounces one's US citizenship, one owes taxes to Uncle for the next ten years. Ask Mark Mobius.

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Re: Why are lottery winnings taxed
Old 01-17-2007, 11:05 PM   #25
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Re: Why are lottery winnings taxed

Quote:
Originally Posted by macdaddy
Couldn't you make the argument that US lottery winnings should be taxed as a capital gain?

Also if I can write off gambling losses... if I win 300m in the powerball and owe 100m in tax... couldn't I just go put 100m on red in vegas, and if I lose, write it off, coming out even?
No... it is not a capital asset...

No... you can write off the $100m from the$300m and pay taxes on the remaining $200m... the write off is not a credit..
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Re: Why are lottery winnings taxed
Old 01-19-2007, 01:09 AM   #26
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Re: Why are lottery winnings taxed

Because the dummies who buy lotto tickets don't vote. They are too busy smoking, drinking and eating trans fat??
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Re: Why are lottery winnings taxed
Old 01-20-2007, 07:04 AM   #27
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Re: Why are lottery winnings taxed

Why? That is simple. The purchase of the ticket is a tax. The winnings are a tax refund which is income.
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