LETTER: Governments make out big on Powerball jackpot
So a lucky Californian bought the $1.2 billion Powerball ticket. But who really won? The U.S. government and the state of California.
The IRS gets 25 percent upfront (and more later when the ticket holder files his annual taxes) and tax-crazy California gets another 10 percent (again with more on annual tax day). So what did the governments risk to achieve this windfall? Nothing.
Even more exasperating is that the governments don’t have to account for this unearned windfall. While the ticket holders have to file taxes indicating where they spent the money, the governments just do whatever they want with it, such as fund unpopular programs. Equally unfair is the fact that the money used to buy the lottery tickets has already been taxed at least once. And remember, this legal theft occurs every time there is a winner. So congratulations to the real lottery winner: the government.