Do You Think Winnings Should Be Taxes As Highly As They Are?

Discussion in Contests & Sweepstakes started by Diane Lane • May 28, 2016.

  1. Diane Lane

    Diane LaneWell-Known Member

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    I know that revenue from official lotteries is often used for schools and other community or state projects, but do you think the state or other government agency should be reliant on such funds for those types of products? Here in the United States, the taxes on lottery winnings are quite high, in my opinion.

    The federal government collects up to 39.6%, depending on other factors, such as your income bracket, and on top of that, you will most likely also pay state taxes on those same winnings. Sweepstakes winnings are taxes as cash, whether they are actual cash, goods, or services. Those winnings are taxes as ordinary income by the Internal Revenue Service, and could push you into a higher tax bracket, thus increasing the amount you will have to pay.

    How are winnings taxes where you live? Have you ever won a prize large enough to affect your tax situation?
     
  2. Destiny

    DestinyActive Member

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    I don't gamble or play the lottery so this doesn't really affect me much. But, I don't mind the taxes but I probably would if I did actually win and had a very large portion deducted... but, I feel that way when I get my paycheck... Haha!
     
  3. Diane Lane

    Diane LaneWell-Known Member

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    Ah, apparently I had some sort of glitch with my D key, as I see from re-reading my post from yesterday.

    @Destiny@Destiny Yes, I understand about a large portion of the paychecks being deducted. It's not so bad if you agree with where the government is spending the money, but when you don't, it's particularly irritating. I do occasionally play the lottery, and I have no issue with some money being taken out, the same with sweepstakes and contest winnings, but I don't think the governments should rely on such a large share of those prizes, and I think too much is taken out of the winnings. It seems many times, about half of the winnings are taken by the government.

    I'm somewhat fortunate to live in a state without an income tax, but of course they collect their pound of blood in other ways, such as sales taxes, higher property taxes, etc. They will get 'their money' one way or another, but 50%, in my opinion, is excessive. I'd personally prefer that the taxes be assumed off the top of the pot, and I only hear about the post-tax amount. Hearing I'd be losing half of my winnings would definitely put a damper on the situation.
     
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