[geeks] Lottery (was informal survey)

[Ken Hansen]

Sambo,

Does your 10 year number account for the taxes you paid on your $5.3K
winning?

BTW, you are paying back your good fortune, $1 at a time back into the
gov't. Consider this: You gave them a dollar, they kept $.50 (aprox) for
themselves, and put $.50 (again, aprox.) into the pool for winning.

So before the drawing occurred, you had given them $.50, or 50% of your
investment.

Then, lady luck shone on you, and awarded you $5,300 in winnings, for which
you probably paid about 40% total in taxes on your winnings, or $2,120.

Now the Gov't. has $2,120.50 of your money.

Then you embarked on a 10 year refund program, totalling $5,300 (aprox) in
total pay-back - this will yield the Gov't. another $2,650 (again, the
Gov't. keeps about 50% of every dollar for administration and other
purposes, the other 50% goes toward the winnigs pool).

So, now the Gov't. has $4,770.50 thanks to you.(90% for them, 10% to you!)

(Oh, and if your $5,300 was post-tax winnings, the principles apply, but the
numbers get even bigger...)

And it is left to you to calculate any additional trivial winnings and their
ultimate impact on your states, and your, bottom line.

Who is the winner here?

Oh, in most states they say the Lottery helps fund programs for senior
citizens and/or children - but the dirty little secrets is that the monies
go to *existing* programs, and lessen the burden on the average taxpayer
(that doesn't play the lottery). So the real beneficiary of the lottery, as
their tax burden is lessened (ideally), offset by the lottery proceeds.

So, please, keep playing the lottery, but don't think you are going to be
the winner -  by playing you lose, and I, as a non-player, win.

Remember, it is not how much you win, it is how much you keep...

That said, I considered getting a ticket in the recent Powerball lottery as
it approached $200 Million... Hey, all you need is a $1 and a dream. ;^)

Ken
(BTW, you *did* claim a deduction of you total investment in non-winning
tickets against your winnings right?)


----- Original Message -----
From: <s at avoidant.org>
To: <geeks at sunhelp.org>
Sent: Monday, September 10, 2001 7:33 AM
Subject: Re: [geeks] informal survey


> > * - I don't do the lottery.  Because I am numerate.
>
> I do. I am also numerate, but I bought a ticket once on a whim, and won.
> It was only 5 numbers out of 6, but it was worth $5300. I decided I'd
> buy a ticket a week 'till I'd spent the winnings. I'm now 7 years
> through the 12. I occassionaly win a dollar or two, and twice slightly
> larger (less than $100 each).



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