and so is how it's distributed...tax records included.
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Publishing names has nothing to do with tax records.
I have a good idea where you're headed though.
IF you are running for public office....and are going to be making financial decisions that affect how taxpayers money is spent....I want to know where your financial interests are...AND I don't believe in 'Blind Trusts", I'd have to be "blind".
Is that where you were headed?
and asked me to respond to that portion of it. I did so. Responding to your specific question doesn't make you right about anything as to where I was "headed". I'm of the opinion that a person's financial status is their own business. If a lottery winner has no contractual obligation to release his/her identification upon winning, they should be allowed privacy if desired. The media will also press them to say what they'll do with the money. They will probably spend and invest some of that. Some will be taxed. How those winnings are to be distributed is also, IMO, a private matter. That's my expansion of the answer to your original question. If you feel you've uncovered some other message from my response, feel free to have your thoughts. I won't waste further time commenting regarding your dissection of it.
about how one's wealth is derived and distributed. Charitable giving, investments, etc., need to be itemized on the many and varied forms that may need to be attached to one's 1040. Another tax record generated in the US is the 1099. It comes in many species but is a tax record of income derived from a variety of sources. It's part of a person's personal financial picture. It is relevant to my statement that one's financial doings are not public business. End of discussion. I'm done.
Whether they put a picture of me holding a symbolic cheque and publish my name in the news has NO affect on tax records IF I was American and won a lottery.
Up here they don't tax us on winnings...only taxed on the income we make "from the winnings". They do publish names and pics of big winners.
I've never been photographed holding a large symbolic cheque :(...BUT I'm quite content.
that when you buy a ticket, you are agreeing to appear in promotionl ads if you win to promote the lottery. So if you live in those states, you enter a contract to appear in an ad in return for your winnings. A huge pay scale for a 30 sec ad maybe, but there you are. If you don't want to appear, don't claim you winnings.
I rather be anonymous as possible myself. Huge prize winners even have to worry about the safety of their kids and family after their names and pictures are shown so widely.
I read some past stories of the lottery winners. I like the one that hired a lawyer to establish a investment trust, then the lawyer was hired by the trust to claim the prize in the name of the trust, which then paid out monthly income to those chosen by the original winner.
all they have to do is let the regulators see their bank accounts and where the money went, they don't have to take pictures handing out a 6 foot check.
Only regulators and the IRS needs to know the winners legally, not everyone.
That said, I understand they want to advertise the winners. It does keep conspiracy lovers from claiming the scenario you just expounded. But more importantly showing "ordinary" people getting millions helps sell the idea that you could win and encourages everyone to go buy a ticket.
I play myself, but sadly there has been evidence that those who can afford it least are the most likely to spend the most on lotteries, hoping to drastically change their desperation to celebration.
It's been said lotteries are a tax on those that can do math. It's more of tax on those that have the least. Their choice, their responsibility, but it does cast a shadow over playing for fun and even over the winners.
I've worked charitable gambling events when our church had them in the past. The personality of many gamblers is quite a bit different from that of other people. If a progressive jackpot had been hit on another night than the current one, the players would want to know the name of the winner.
Someone has to win and then become "public knowledge", otherwise, the lottery people can say, Mr. Smith has won and just keep the money. Public disclosure is meant to say that winning were distributed and all fell into the rules, etc.. Otherwise, when it comes to money good intentions become mucked-up all too fast. Which is why gambling even under illegal circumstances, pays off because once the gambling public(or private) find a crooked house, bets/sales are to be lacking.
Of course, winners have to use what ever God given talents they have to protect themselves. What they can't do, then allow someone else to provide it. ------Willy
I find it amazing and even down right crooked when it comes to pay outs. Where was the govt. or anyone else when I put "my money" to buy a ticket, 100% my dollar. yet, when you win, EVERYONE gets a cut of the winnings. Yeah, i know this and that, but where was their money mixed with mine, I didn't see a govt. official, shop keeper, or what have you place their bets with mine. Some local govt's also passed hesitation in order to get a share as well that weren't on the books before, usually city govt. or township.
Plus, if you asked for the X-amount that was to be the winning payout, you don't get the full amount. Excluding the tax side but immediate payout rather than annuity payout, its much less. So, it seems they protect themselves rather well. -----Willy
you if you take the long term payout.
Some argue that you can take the lower cash payout, pay the taxes, and invest it yourself and make as much. Maybe, who knows who will win with different investment stragedies.
But don't forget, they get to invest the entire amount, income tax is only incurred when they pay it to the winner.
So if the advertise pot is 100 million, the cash is 60 million, after tax it's 40 million. That's a generous estimate. So they get to invest 60 million, you only get to invest 40M. Actually your cash will probably be closer to 35 than 40, maybe even less, down to 30M.
As far as everyone getting a cut without putting into the ticket price, the government doesn't go to work with you every day either but they take that cut, they don't put the money in savings but they take that cut, etc. Why would we expect a lottery to be any different.
Are lottery winning subject to or exempt from the so call windfall taxes? I don't know.
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