Neal Boortz has claimed over and over again that the lottery is nothing more than a tax on the stupid. Here is a look at why he says this:
Powerball lottery officials say one winning ticket was sold for Saturday night’s $314 million jackpot.
It was purchased in Indiana.
The jackpot is $314 million. According to USA Mega.com, 25% of that goes directly to the federal government for taxes. That is $78.5 million dollars, gone before you even had it. So now you are down to $235,000,000.
With the FairTax, there is no loss of $78.5 million dollars. You get the whole thing. The government will get its cut when you buy the crap that is going to finally make your life happy. Go crazy!
Indiana has a 3.4% state tax on Powerball winnings, so subtract another $8 million. Now you are down to $227, 000,000.
Now add in all the local taxes. It is estimated that each Powerball winner pays about 50% of the winnings in taxes. The estimated payout for $314 million was $140 million.
That is a tax on the stupid.
But I bought six tickets anyway. Won thirty-eight cents. BOO-YAH!
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