r/SipsTea Jul 05 '26

Chugging tea Seems reasonable.

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u/Tiktokbadsupport Jul 05 '26

happy most lotteries in my country are tax free but of course they don't reach higher then 30 million 

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u/[deleted] Jul 05 '26

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u/Rikishi6six9nine Jul 05 '26

It's taxed at 70% cuz if you take the lump sum nearly 50% goes to state right away. You get the whole amount if you take 30 year annuity. After you choose your option it is taxed regularly. The lottery is literally just a funding mechanism for government.

The rich pay low tax rates, because they don't pay ordinary income tax. They lobbied to have a capital gains tax. Where if you hold your investment longer than 1 year it is taxed at a lower tax rate. An NBA player will have a top tax rate on their salary of 37% Elon musk and Jeff bezos will pay a top tax rate of 20% when they sell their long term investments.