Question of the Day - 12 September 2023

Maybe that was long enough ago, before the age of (BLAUUUGH) social media, that he has been left alone, but I doubt it. He has almost certainly had to conceal his address, phone number, maybe even change his name. And the aunts and uncles and cousins drop by WAY more often than he wants.
Consider that so far, Uncle Sam has won almost $12 million (based on a 38% top tax bracket)...and he didn't even have to stick in that initial hundy.
I wonder how much he toked the slot attendant(s)...

Leave it someone to find all the negatives in what should have been a joyous occasion! There's always one in the crowd.

A couple of comments.

1)I don't usually play slots so I don't pay attention to the "jackpot", I thought that the jackpot money was paid all at once.  After all, IGT should already have that amount "in the bank" since they take the money from the player instantly when they lose.

2) Only good thing about extended payments that I can see is that if you win while you live in a high tax state, with your first year's payment, you can establish residency in a low tax state, (or in the Caymen Islands) for the next 24 payments.  

A short book or an article on his life experiences following the win would be interesting.  I suspect the whole thing has been quite an adventure for him.  A friend-of-a-friend of mine is worth more than a billion.  He  lives in a small town and is generally left alone.  He did, apparently hire one person to handle all local charities ;requests and he supports them.  In person he is a regular nice fellow and has all of the usual life problems.  But, he can worry about them on his personal Yacht!  Back to the slot winner, maybe LVA can do a little investigation and give a report.  

Since there is no way in hell Ex had anything close to qualifying as a "VIP Room" I'm curious what hotel they took him to? LOL

In response to tgabrielli's snide and others' interesting comments, first of all, the payments being spread out over X number of years doesn't lower your eventual federal tax bill, since you're in the top bracket either way, but it can indeed lower your state taxes.
I've read several books about lottery winners and the lives they led after the big hit. It was far from a bowl of cherries for many of them. The unwanted attention, the necessity of handling taxes and investments, struggling with decisions on how much to give to charity, etc.--it can be highly stressful. And as I said, you have to barf up half of your winnings to the various taxing entities. 
I recommend "Money for Nothing" by Edward Ugal for an eye-opener. 

At least 20 years ago a lottery winner in Florida got a big win. The news said this person was related to someone in my city with my name. I got several calls within 4-5 hours. One call was from the local tv news reporter who had been in Playboy a couple years before, but she didn't want to talk about that. Some people value their privacy. She wouldn't even give me her phone number. 

'Leave it someone to find all the negatives in what should have been a joyous occasion!'

Lewis is an eternal negative Nellie whiner on just about everything here, standard stuff. 

You'd actually think he'd see the positive in giving the gubermint all that money in taxes from the slot win as Lewis is king of the wealth distribution 'social justice' club which is code phrase for take money from one tax paying group and give to someone deemed to deserve it more. 

'I've read several books about lottery winners and the lives they led after the big hit'

It's called remain anonymous and keep your head low after. And it's an option in such wins-circumstances. Apparently this guy wanted everyone to know he won and freely gave permission to use his name, job title, and age. And I'm guessing the smiley win photo by the slot machine. 

Choices. 

After showing his derriere with his initial snide comment, Kevin Lewis pulls a twofer.

Paying out the jackpot over 25 years actually does lower the total tax bill. Federal income taxes are calculated on a graduated schedule. So being in the top tax bracket doesn't mean you pay the top tax rate on your entire income, only that you pay the top rate on the portion of your income that exceeds the threshold for that rate.

So, all things being equal, paying taxes on 25 $1.5 million payments actually does incur significantly less federal taxes than paying on a one time $39.7 payment.

Further, in the past 21 years, there have been at least a couple of stretches when the top rate was less than the current top rate (and the top rate in 2022). So there was a tax advantage to the payout.

The difference in REAL DOLLARS, however, more than wiped out any tax savings.

If you're in the top bracket no matter what, the only tax savings in taking payments is that you get 25 standard deductions instead of one---which is trivial. Of course, that assumes that the lump sum would be the same, which it generally isn't. Taking a smaller lump sum would result in a smaller aggregated tax liability.

Just ran some quick calculations. The federal tax savings from having the jackpot paid out over 25 years instead of a lump sum is probably over $1 million.

But the present value of the $39 million jackpot paid over 25 years is just over $9 million at the time of the win. But if he had gotten the full payout in 2002 and then invested the after tax amount at a modest 6% return, he would have almost $100 million today.

 Seemingly in almost any post in the forums that there is one person who is the common denominator with negative postings? He obviously hates Vegas, never posts anything positive and denigrates any one who disagrees with his postings. Year after year he has done this with impunity. Just like with this question, he has turned it into another disruptive diatribe - why is this person allowed to do this?

It is now clear to me that Kevin Lewis was never an "Advantage Player" as he claims. Being an advantage player requires some basic math skills. And knowing some basic taxation doesn't hurt either.

Here's the deal, Kevin. The issue isn't about deductions, its about tax rates. The U.S. doesn't have a flat tax system. It has a progressive tax system.

Currently, a single filer (I assume you are single because...) pays pay 10% on income up to $11,000, 12% between $11,001 and $44,725, 22% on $44,726 to $95,375, 24% on $95,376 and $182,100, 32% on $182,101 to $232,250, 35% on $232,251 to $578,125, and 37% on all income over $578,126.

For 25 annual payments of $1.6 million that equates to an effective tax annual tax rate of 34.39%. On a lump sum payment of $39 million, the effective tax rate is 37%.

That 2.61% effective rate difference, in today's tax rates, would equate to a tax savings over over $1.6 million dollars for the 25 year payout over a lump sum.

And David Miller, and the other name-calling nasty posters here, don't think there's anything wrong with THEIR postings. Did I insult anyone? Did I denigrate anyone? No.

I would lay 1000-1 that all the nastyholes are Trumpers. I know for certain that Miller is. It certainly explains their lack of civility 

'I would lay 1000-1 that all the nastyholes are Trumpers. I know for certain that Miller is. It certainly explains their lack of civility'

oh good gawd. Pot and kettle time, the great projector, always the victim yet for years has been spewing some of the most nasty vile language and hatred on this forum at others that is completely unwarranted to the topic at hand. And once again, we get a revisit from his unhealthy Trump obsession when all else fails, spin it all far off topic. Give the anger a rest.