Powerball mania is sweeping the nation (and even Canada) as the jackpot has grown to an estimated $1.4 billion payout.
Winners who choose the lump sum payout will only receive $806 million with $594 million staying within the government lottery system.
But who will make the most money?
Thanks to a Magic 8 Ball and an understanding of tax brackets, we can accurately predict that federal and local governments will be the ones laughing to the bank with a guaranteed win.
While 25% is taken of the top from winners automatically, they will still be thrown into the highest tax bracket of 39.6%.
The feds will walk away with $319.9 million.
States will also get their cut. In Virginia, that would be 5.75% or $46 million.
And thanks to President Obama’s fiddling with the tax code, individuals who earn over $381,900 and couples who earn over $433,800 lose personal exemptions . . . that means even more taxes to pay.
In the end, a Powerball winner in Virginia who hits the $1.4 billion jackpot, in the end, takes home about a billion less after taxes with the lump sum payout . . . $439.7 million.
It’s easy to predict the Powerball winner which walks away with nearly a BILLION bucks. It’s not the lucky soul who hit the winning numbers . . . it’s the governments that control that poor soul.
The lottery tax scheme which is supposed to support low-income programs in states is another government ponzi scheme that takes from the vulnerable to give to the government behemoth.
