380 million dollars.
I’ve never met anyone with 380 million dollars. In fact, most of us never will.
Interest rates are low so the “annuitized” cash value was $240 Million. A ticket sold in Idaho and in Washington both won the jackpot and will split the prize. If they take the cash (the smart choice), each receives $120 million.
The IRS requires a minimum 25% withholding on gambling wins in excess of $5000. Except the real rate is 35% on the income over $372,950 plus $108,216. And state and local taxes grab another chunk (although the Washington state winner lives in a state with no income tax).
So our 380 million dollar winner is actually two 190 million dollar winners who each get half of 240 million dollars and take home less than 80 million.
That’s still a lot of money and nothing to be peeved about.
Except it turns out corporate dividends are not the only kind of income twice taxed or triple or even quintuple taxed. Every dollar that went into that jackpot was already “after tax” income. Taxpayers (even the very poor who have no tax liability) bought every one of the 300-ish million tickets sold.
So the governments got income tax on the money coming in, then they took a cut off the top of the lottery prize (for the education fund, doncha know). And now they take another tax on the “winnings.”
A tax on peope who can’t do math.
That’s a lot of money and it is something to be peeved about.