Update to yesterday’s Powerball Lottery post.
Unfortunately (or fortunately as it’s still a heck of a prize!), our Powerball winner will split the jackpot with two other lucky winners.
Meaning the cash option is reduced to approximately $310 million.
Deduct Federal Taxes (39.6%): $122.7 million
Deduct CA Income Taxes for the CA winner (12.3%): $38.1 million (Perhaps even more lucky for the other winners reported from Florida, no state income tax, and Tennessee, income taxes on dividends and interest only!) Sorry California, you should have picked a different state to win in. 😉
Net winnings: $149.1 million on a jackpot that was supposed to be headlined at $1.6 BILLION. Representing about 21 minutes worth of spending by the federal government.
The federal government of course, gets to tax all three winners – collecting a total of approximately $368 million.
Once again, the government won the lottery…particularly when you consider that an estimated 1 billion tickets were sold – at a price of at least $2 each, which lines the coffers of state government-run lottery commissions.
No wonder many states have passed laws prohibiting gambling. They don’t want competition.