But if you’re the lucky winner – overcoming the astronomical odds of 1 in 292 million – and managing to not split the pot with other lucky individuals who also managed to overcome the same astronomical odds….you’ll never see that much thanks to your long lost friends in the Internal Revenue Service and state departments of revenue.
That’s right, not only will you have to fight off droves of never before seen “cousins,” long lost friends, acquaintances, that guy who held the door open for you that one time when you went to buy a lottery ticket…you’ll have to fight off scores of government bureaucrats looking to feast on your winnings in exchange for all the value the government provides to you for the roads they haven’t been building or maintaining.
First, the cash option drops “Billion” from the figure – presently standing at $930 million.
The federal government stands to collect 39.6% in federal income taxes: $368.2 Million
Next, most Americans will face a state tax bite – which varies by state (0% in some states all the way up to a top rate of 12.3% in California. Really California?! No wonder people are packing up and leaving you…), but we’ll estimate state taxes at 5% : $46.5 million
Some will also face city or local income taxes – but we’ll disregard those for now.
Your net winnings will be approximately $515 million.
Federal spending in 2015 was $3.687 trillion (about $421 million per hour).
Meaning the amount of money you’d expect to see from winning the largest lottery jackpot recorded in US history will net you…..73 minutes worth of federal spending.
May the odds be ever in your favor…
“Money” by Pictures of Money