• foggy@lemmy.world
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    1 year ago

    Kinda has a stench of “the wealthy get taxed too much 😢”

    The IRS doesn’t get that money. The IRS processes that money and prevents your lottery-ticket-buying-ass from hoarding it all, and redistributes some of that unnecessary wealth to the utilities and services were all invested in together as a society.

      • runner_g@lemmy.blahaj.zone
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        1 year ago

        This is what happens if you take it out as a lump sum. If you choose to take your winnings over an extended period of time (20 years or something), it is taxes more like income.

        That said, I totally agree with you!

      • scifu@lemm.ee
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        1 year ago

        The poor smuck probably claimed the lottery as an individual. He should have opened a company and claimed the ticket so that he can expense out a lot of his taxable income

        /s

        I am 99% sure this is not how it will work in this specific scenario but does otherwise when it’s business as usual.

    • CAPSLOCKFTW@lemmy.ml
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      1 year ago

      The IRS is chronically underfunded. They can’t keep the money, it goes to Aunt Sam.

      And btw the IRS has not enough staff to investigatevif rich people pay their fair share, therefore they go mostly for normal people.

      • Snipe_AT@lemmy.atay.dev
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        1 year ago

        Just wanted to point out that the IRS audit rates for the rich are higher than normal people.

        [Jay McTigue:] Well, as I said, higher-income taxpayers are indeed being audited at a higher rate than lower-income taxpayers. In fact, the highest-income taxpayers, those making $5 million or more a year, right now are being audited at about 2.3%. Whereas on average the audit rate is less than 1% So there is still a focus on the higher-earning individuals.

        source: https://www.gao.gov/assets/730/720478.txt

        edit: pulled another GAO report bolstering my argument:

        From a report on 2019 data:

        “Although audit rates decreased more for higher-income taxpayers, IRS generally audited them at higher rates compared to lower-income taxpayers, as shown in the figure. However, the audit rate for lower-income taxpayers claiming the Earned Income Tax Credit (EITC) was higher than average. IRS officials explained that EITC audits require relatively few resources and prevent ineligible taxpayers from receiving the EITC.”

        source: https://www.gao.gov/products/gao-22-104960


        Please ignore my negative initial vote score, as I have the privilege of being bot-downvoted by CCP sympathizers because of comments on this post https://lemmy.world/post/2338419, there is also the possibility that I’m just an asshole.

        • BeegYoshi@lemm.ee
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          1 year ago

          the misleading thing about that statistic is that there are far, far fewer wealthy people than there are normal. even with the rate of audits technically being lower, the number of audits of normal people is still far, far greater, and is where the IRS’s focus truly is

  • Got_Bent@lemmy.world
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    1 year ago

    So we do all realize that advertised jackpots are annuitized amounts and that the vast majority take the net present value lump sum, which is usually about half the advertised amount, right?

    Winner probably got about six hundred million, of which roughly forty percent was taken for taxes give or take state income tax rates.

    • JokeDeity@lemm.ee
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      1 year ago

      I was with you till the last paragraph. The numbers are already there for you, so I don’t know where 6 hundred million came from.