Talk of The Villages Florida - View Single Post - Taxes
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Old 06-06-2009, 01:14 PM
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If the young man invested the $89 million in a safe (what's "safe" these days?) investment yielding, say 5%, his reported income would be $4.45 million per year, more in future years if he doesn't spend it all. With no deductions, he'd be in the maximum tax bracket, 35%.

There'd be some personal deductions and exemptions and whatever magic a sharp accountant could pull off, but let's say he actually paid the taxes at the maximum rate. He'd still have after-tax income of almost $2.9 million per year. That's $242,000 a month, $56,000 a week, over $8,000 a day.

Sounds like a sweet deal to me. Other than buying a lottery ticket and getting lucky, did the winner contribute anything to society or his community by winning the lottery? I guess I might query, why shouldn't he pay taxes at the maximum rate?

I might even go so far as to propose that a "special" maximum tax rate of 75% be enacted to apply to gambling winnings. Not only would it help balance the federal budget, but it might serve as a deterrent to those that can't afford to house, feed and educate their families from gambling away the rent money.