The other problem is the present value of money versus the value of the pay out over time. In other words if you take the lump sum and invest it wisely you can avoid losing value to inflation and perhaps increase the value. Whereas if you take the payments they will be less valuable as time goes on and inflation keeps up.
oh well. sometimes you win and….. depending on things…. sometimes you win..Thanks @ cowcat Its nice to win and take it all without the tax. Now – just to win it!
Yet another reason why it is good to be Canadian – lottery winnings, game show prizes, gambling winnings (including winning at poker) – is considered a “windfall” and non-taxable. That’s the good news. The bad news is that our lottery payments tend to be smaller than in the US. I don’t think we’ve ever had one larger than about $75 million.
Another problem with lotteries: the payout is usually on the order of 60-65%, which makes it really, really hard to make a profit, even before taxes.
I once heard of a mafia boss who said that their numbers rackets were much more honest than the governments’: They paid out about 80%, and didn’t tax the winnings.
The Nihilist almost 12 years ago
Conveniently, I found that out after I won…
Let’s see thats a one million dollar payout at one dollar a year for a million years. Yep, back to work tomorrow…
TiffWHO almost 12 years ago
This strip might strike a lot of people’s nerve. I like it.
cowcat almost 12 years ago
This is a Canadian strip. In Canada lottery winnings are not taxed, and the big ones pay out the whole prize in one lump sum. Nice, eh?
Steveh16 almost 12 years ago
The other problem is the present value of money versus the value of the pay out over time. In other words if you take the lump sum and invest it wisely you can avoid losing value to inflation and perhaps increase the value. Whereas if you take the payments they will be less valuable as time goes on and inflation keeps up.
sleeepy2 almost 12 years ago
Lump sum or payments, the lottery is still just a tax on the stupid.
hippogriff almost 12 years ago
sleepy2: No, on the desperate. It is part of the Reaganhood rob the poor to give to the rich.
Hunter7 almost 12 years ago
oh well. sometimes you win and….. depending on things…. sometimes you win..Thanks @ cowcat Its nice to win and take it all without the tax. Now – just to win it!
bmckee almost 12 years ago
Yet another reason why it is good to be Canadian – lottery winnings, game show prizes, gambling winnings (including winning at poker) – is considered a “windfall” and non-taxable. That’s the good news. The bad news is that our lottery payments tend to be smaller than in the US. I don’t think we’ve ever had one larger than about $75 million.
bmonk almost 12 years ago
Another problem with lotteries: the payout is usually on the order of 60-65%, which makes it really, really hard to make a profit, even before taxes.
I once heard of a mafia boss who said that their numbers rackets were much more honest than the governments’: They paid out about 80%, and didn’t tax the winnings.