I recently watched a portion of an interview by prospective Democrat presidential candidate Bill de Blasio. Mr. de Blasio stated he would impose a 70 percent federal tax on all earnings of more than $2 million. I have read that Bernie Sanders would impose a 50 percent federal tax on all earnings over that threshold.
So how would huge taxes affect Powerball players?
I think most Powerball players hope to win big dollars, probably enough money to never work again. If Mr. de Blasio were president, a person winning a $2 million jackpot would receive $600,000 after taxes (no retirement). The government would receive $1.4 million. The big winner?
If a Powerball winner won a $20 million jackpot, he or she would receive $6 million after taxes. The U.S. government would receive $14 million. And if the Powerball winner was from California, the winner would receive $3.4 million after state and federal taxes.
Seems as if only governments would live the dream.