Lottery Winning Taxes per country - Top 10 Best Online Lotto
Lottery Winning Taxes per country - Top 10 Best Online Lotto
Topic No. 419 Gambling Income and Losses | Internal
Instructions for Forms W-2G and 5754 (2020) | Internal
$1.6 Billion Lottery Winner Will Face Huge Taxes, Possible
What Are the Taxes on Lottery Winnings in the US?
Lottery Winnings And Gift Taxes
What Percentage of Lottery Winnings Would - Tax Foundation
Lottery Tax Calculator - How Lottery Winnings Are Taxed
Taxes On Lottery Winnings by State 2021
Do You Pay Taxes on Lottery Winnings Every Year? | Lotto
irs lottery winnings tax rate
irs lottery winnings tax rate - win
Yotta Savings FAQ
This FAQ is going to be a work in progress. As common questions come up, I will try to keep this updated to help people understand how Yotta Savings works to the best of my ability. Here are some of the most commonly asked questions: Is Yotta Savings free to use? Opening and maintaining a Yotta Savings account is 100% free. There are no hidden charges or costs that you will need to deal with. Are the funds FDIC insured? Yes, Yotta Savings works with a partner bank to fully cover deposits with FDIC insurance up to the regular $250,000 limit. The partner bank is Evolve Bank & Trust. What is the interest rate? Yotta Savings currently offers a guaranteed 0.20% APY savings bonus on deposits. However, with the prizes and current odds of winning those prizes, the value of the expected APY is hovering around 1.62%. These numbers are always subject to change and odds/prizes are changed, and if Yotta adjusts their base APY based on current market conditions. What are "tickets" and how do drawings work? For every $25 deposited into the account up to $25,000 and after that every $150 you will receive one ticket. With each ticket, you have the ability to choose what numbers you want on it, or have them randomized. A number is drawn every day starting on Monday at 9:00PM ET with the final number being drawn on Sunday at 9:00PM ET. It is after this final number, the Yotta ball, is drawn that the prizes for the week are disbursed. Regardless of the results for the week, your number of tickets resets and you get to begin again the following Monday. An example of this is that I deposit $1,000 into my Yotta account and receive 40 tickets. The numbers are drawn throughout the week and I receive any prize money that I won directly into my balance. Once Monday comes around again, I am once again given 40 brand new tickets to start the week off again. What is the difference between Yotta Savings and a regular bank? A Yotta Savings account functions a lot like a regular bank savings account with a few differences. There is still the standard 6 withdrawal limit per month, and Yotta Savings has a daily deposit/withdrawal limit of $10,000 per day, and $40,000 per month. You get a monthly 0.20% APY savings bonus applied monthly, and any winnings from your tickets are automatically added to your balance. How is Yotta Savings able to offer these prizes? They are able to take advantage of much smaller advertising and operating expenses so they are able to pass much more onto their users. They make use of other banks high yield interest rates, and utilize the spread to offer prizes to Yotta Savings users. Are the numbers drawn truly random? Yes, Yotta Savings works with a 3rd party insurance carrier that draws the numbers for the prize winnings with a state-of-the-art random number generator. This functions as a double blind to ensure fairness. They are not affiliated with Yotta and have no way of seeing the numbers that users have drawn. How does the grand prize work? The grand prize functions much like the regular lottery does. The posted $10,000,000 grand prize is the future value of a 40-year annuity. If you would win the grand prize, you have the option of either taking that 40-year annuity, or a lump sum of $5,800,000. Of that total, you will end up needing to pay taxes on the amount which will depend on your current place of residence. What are the tax implications with these winnings? The interest isn't technically "interest" - it is a "savings bonus" coming from Yotta. As long as you earn less than $600 in a year, Yotta will not report anything. It is up to the user to report the income to the IRS. If you do earn more than $600, Yotta is going to be required to submit a report of the income you earned to the IRS. What are the current prizes and odds of winning those prizes? Current Reward List:
Matching Numbers
Prizes
Current Odds
6 matching numbers + Yotta ball match
$10,000,000 grand prize
1:8,260,307,055
6 matching numbers
One Telsa Model 3 or $37,990 cash
1:133,230,759
5 matching numbers + Yotta ball match
$5,000
1:21,511,216
5 matching numbers
$1,500
1:346,955
4 matching numbers + Yotta ball match
$1,000
1:273,158
4 matching numbers
$10 per ticket
1:4,406
3 matching numbers + Yotta ball match
$7 per ticket
1:9,913
2 matching numbers + Yotta ball match
$0.60 per ticket
1:867
3 matching numbers
$0.25 per ticket
1:160
1 matching number + Yotta ball match
$0.15 per ticket
1:181
Yotta ball match
$0.10 per ticket
1:110
Note the rewards from $1,000 and up are not "per ticket" and will be split if there are multiple winners. Please refer to their website for the Official Rules and additional FAQ. If there are any questions you would like to see added, please let me know and I will update our FAQ here to reflect that.
Do You Have to Pay Taxes on Slot Machine Winnings?
We all love to read stories about big wins and imagine ourselves in the shoes of those winners. But, have you ever thought about what happens at that very moment after successfully beating the slot machine? Usually, the slot machine locks up and, in most cases, you hear the music and see the flashing lights on top of the machine. But one of the first questions every player asks is whether they have to pay taxes on casino winnings? Well, you’re about to find out!
Taxes on Slot Machine Winnings in USA
In the USA, when a lucky player hits a jackpot, there’s the option of receiving the winnings in cash or check. In case it’s a large sum, it’s usually paid by check. However, the IRS only obliges the casinos to report winnings that are larger than $1,200. Of course, all winners are obliged to show a proper identification— a valid ID or passport. When the casino checks for your identification they also look at your age to make sure you are officially and legally old enough to play. As the minimum legal age for gambling varies from state to state, be sure to check it out before you decide to play.
Do I Have to Report All Winnings?
All gambling winnings received from slot machines are subject to federal taxes, and both cash and non-cash winnings (like a car or a vacation) are fully taxable. Apart from slot machines, the same applies to winnings from lottery, bingo, keno, poker or other games of chance. So, if the amount won on a slot machine is higher than $1200, the casino is required to report it. In other words, all your gambling winnings have to be reported on your tax return as "other income" on Schedule 1 (Form 1040), line 8.
Slot Machine Winnings in W-2G Form
In case it happens to you and you snag that big win (which we hope one day you will), it’s useful to know that casino or other payer must give you a W-2G Form, listing your name, address and Social Security number. So, if the winnings are reported through a W-2G Form, federal taxes will be withheld at a rate of 25%. If, however, you didn’t provide your Social Security number (or your Tax Identification Number), in that case the withholding will be 28%. Either way, a copy of your Form W-2G should be issued, showing the amount you won alongside the amount of tax withheld. One copy needs to go to the IRS, as well. Aside from slot winnings, Form W-2G is issued to winners of the following types of gambling activities like:
bingo (for players who win $1,200 or more),
keno (for at least $1,500 worth wins)
poker tournament players (for the $5,000 win or more).
a horse track (if the winnings are 300x your bet)
However, not all gambling winnings are subject to IRS Form W2-G. For instance, W2-G forms are not required for winnings from table games like blackjack, baccarat, and roulette, whatever the amount. You’d still have to report your winnings to the IRS, it’s just you won’t need to do it through W-2G Form.
Are My Slot Losses Deductible?
The good news is that you can deduct your slot losses (line 28 of Schedule A, Form 1040), while the bad news is gambling losses are deductible only up to the amount of your wins. In other words, you can use your losses to compensate for your winnings. So, let’s say you won $200 on one bet, but you lost $400 on one or a few others, you can only deduct the first $200 of losses. Meaning if you didn’t win anything for a year, you won’t be able to deduct any of your gambling losses. In order to prove your losses, you need to keep good records and have suitable documents. So, whenever you lose, keep those losing tickets, cancelled checks and credit slips. Your documentation must include the amount you won or lost, a date and time, type of wager, type of your gambling activity, name of each casino/address of each casino you visited and the location of their gambling business. You may as well list the people who were with you.
Do State and Local Taxes Apply Separately?
Yes, you are required to pay your state or local taxes on your gambling winnings. In case you travel to another state, and snag some huge winning combo there, that other state would want to tax your winnings too. But don’t worry, you won't be taxed twice, as the state where you reside needs to give you a tax credit for the taxes you pay to that other state. Keep in mind though that some states like Connecticut, Massachusetts, and Ohio don't allow gambling losses.
Online Slot Taxes
Whether you usually spin the reels of your favourite casino games in land-based casinos in the US, overseas casinos, or online casinos, all income for the citizens of the US is taxable. As a US citizen, you are required to send Form W2G for all winnings from a slot machine (not reduced by the wager) that equals to or is more than $1,200.
Taxes on Slot Machine Winnings in UK
As a resident of the United Kingdom, your gambling winnings won’t be taxed. Unlike the USA mentioned above, you’ll be allowed to keep whatever it is that you have won and earned in Britain, even in case you are a poker pro. Then again, you won’t be able to deduct any losses you might collect. It doesn’t really matter if you win £5 or £5 million playing online slots, your winnings will be tax-free as long as you reside anywhere in the UK, be that in England, Wales, Northern Ireland or Scotland.
Taxes on Slot Machine Winnings in Canada
If you are a recreational player who lives in Canada, we have good news for you. When it comes to gambling, you don't have to pay taxes as your winnings are totally tax free. According to laws in Canada, gambling activities don’t fall under the category of constant source of income, therefore your winnings will not be taxed. Canadians don't even pay taxes on their lottery winnings. The only exception here are professional gamblers who make a living from betting and are, therefore, obliged to pay taxes. Keep in mind though, this is the current situation - laws in Canada change frequently, which may also include tax laws.
Taxes on Slot Machine Winnings in Australia
In case you reside in Australia and like to visit casinos from time to time, you’ll be happy to find out that your winnings in Australia will not taxed and here are 3 core reasons for that:
Gambling is not treated a profession (it's treated as a hobby)
The government doesn’t see profits from gambling activities as income, but as a result of good luck
The Australian government taxes casino operators and lottery organisers instead.
Of course, taxation varies from state to state.
Taxes on Slot Machine Winnings in New Zealand
Unlike in Australia, where even professional players can claim they are recreational, in New Zealand slot machine winnings (and any other winnings from casino games) are considered taxable income, in case the player has little income from other resources. But, apart from professional gambling, it is very unusual for winnings to be taxed in New Zealand. Most often, gambling is considered recreational and not income, so players can enjoy their gameplay as they do not have to pay taxes on their winnings.
My [20M] girlfriends [18F] parents are using her info to accept $1000s in scratcher winnings.
Exactly what the title says, my girlfriends parents are using her information including social security number to accept thousands of dollars in winnings, close to $10,000, from scratcher tickets and has been getting letters from the IRS about W-2Gs. The letters have been coming in for some time and she was never told about them until she found a stack of them in her parents room. She confronted her parents but they basically didn't tell her anything about them and said they had the right to use her information to accept the winnings because they're her parents. I have no experience with anything like this and wanted to know if this will backlash on her in anyway and if so how do we handle this. [USA] EDIT Some more info, She is in college and works 2 jobs and has worked one since last summer right after she turned 18. Her mother was very clear on her not filing her taxes this year.
Top 10 Libertarian Lies For a short time -; it seemed like the libertarian cancer in American politics was finally dead. Rand Paul -; the supposedly electable and hip son of Ron Paul -; ended his train wreck of a campaign after a pathetic showing at the polls. The Republicans instead chose Donald Trump -; the least libertarian candidate in the race. On the Democratic side -; democratic socialist Bernie Sanders built a massive movement around his decidedly anti-libertarian ideas. But I should have known better than to discount the corporate class. Led by the Koch brothers -; the 1% did not give up on their agenda. As their traditional Republican venues disappeared -; they headed to their last resort: the Libertarian Party. Lie #10: The founding fathers were libertarian More than anything else -; libertarians love to call themselves “classical liberals -;” beckoning us back to the early days of this nation. For a group that despises our government -; they have a strange admiration for those who created it. It is unlikely that many of the founders would have admired them back. In the late 1700s -; governments across the world were almost universally undemocratic. Within that context -; some of the founders were wary of government overreach. However -; they did not focus their disapproval on regulations and services designed to protect the poor. In fact -; “classical liberal” Thomas Jefferson vocally supported progressive taxation -; adding that “whenever there are in any country uncultivated lands and unemployed poor -; it is clear that the laws of property have been so far extended as to violate natural right.” Similarly -; John Jay said that “nothing is more certain than the indispensable necessity of government [and the idea that] the people must cede to it some of their natural rights.” While I’m no great fan of the founding fathers -; they were no libertarians. Lie #9: The problem is crony capitalism -; not capitalism When we point out the injustices within the capitalist system -; libertarians will often claim that the real problem is “crony capitalism.” While it is sadly true that the rich often do get favors -; blaming “crony capitalism” reflects a disturbing naivete. The poor both pay less to and receive more from the US government than the rich -; yet our system is still grotesquely unfair and tilted against the disadvantaged. It’s not crony capitalism that’s behind this unfair tax system - it is capitalism. It’s also not crony capitalism that allows employers to pay their workers starvation wages - it is capitalism. Nor is it crony capitalism that incentivizes collusion -; fraud -; and the creation of barriers to entry - it is capitalism. Finally -; it’s not crony capitalism that rewards class privilege -; -; and intellectual privilege- it is capitalism. The reality is that the neoliberal destruction of the middle class did not come about through crony capitalist giveaways -; which are barely reflected in the government budget. It came about through the tax cuts -; spending cuts -; and deregulation championed by libertarians. Lie #8: Tax cuts trickle down Incidentally -; this lie is more often associated with conservatives than libertarians. Many libertarians are dogmatic radicals who oppose all taxation -; and for them -; it doesn’t matter whether tax cuts hurt the poor and the middle class. However -; there are a number of libertarians who -; like conservatives -; point at the Laffer curve -; and say that cutting taxes can actually increase our tax revenue through economic growth. Obviously -; cutting taxes to 0% (or 5%) will not increase tax revenues. There is a revenue-maximizing rate…and economists estimate that it is between 68% and 80%. Tax cuts won’t increase tax revenue -; since our highest tax rates aren’t even remotely close to those numbers. And while tax cuts for the rich do stimulate the economy to some extent -; in the end they are usually paid for through devastating cuts to social programs. Plus -; wealth transfers to the needy offer a far greater stimulus. Lie #7: The rich deserve to be rich -; and the poor deserve to be poor This is perhaps the most revolting libertarian lie -; that the rich “earned” their wealth -; and that the poor are just lazy. Libertarians use this lie to justify everything from their hatred of taxation to their shameful neglect of the poor. It is also ridiculously easy to disprove. Adult children make -; on average -; 33 additional cents for every dollar that their parents make. Of those born in the bottom 20% in the income distribution -; 43% remain in the bottom 20% -; and 70% remain in the bottom 40%. Of those born in the top 20% -; 40% remain there. That’s not because they are getting government favors. It’s because in a capitalist society -; those who win the birth lottery have countless advantages. Furthermore -; for every dollar that a white man makes -; a white woman makes 78 cents -; a black woman makes 64 cents -; and a Hispanic woman makes 54 cents. The income of those with IQ scores in the top 10% is more than double the income of those with an average IQ. Those with certain personality attributes -; like extroversion -; also have higher incomes. 65 people own as much as 3 -;500 -;000 -;000. None of this has anything to do with hard work. In fact -; the productivity of the bottom 90% has increased as their wages remain stagnant. The truth is that our distribution of wealth is wholly based on the lottery of birth -; the injustice of capitalism. Progressives reject that injustice. Their solution is not to have everyone make the same -; but to help those who fell through the cracks through no fault of their own. They support welfare policies that not only don’t discourage the poor from working -; but actually cause them to work harder. Lie #6: Government is tyrannical This is perhaps the most successful libertarian lie; the notion that representative government is inherently tyrannical. When they frame the debate as us (the people) vs. them (the government) -; they ignore that we collectively are -; in fact -; our democratically elected government. When this challenge is brought up -; libertarians tend to counter that they didn’t vote for the government -; so it’s a “tyranny of the majority.” This -; once again -; exposes the libertarians’ hopeless naivete. Conflict will always exist in some form -; in which no resolution will ultimately satisfy either person. Therefore -; the just resolution of a conflict will be one of these two options: 1. The resolution which satisfies the most people. 2. The resolution which leads to the most overall satisfaction. Libertarians think this woman is participating in a system of tyranny https://miro.medium.com/max/1335/1*dwhrcvz3aJVwMdm_rFcgzA.jpeg The first resolution is satisfied by a direct democracy. The second (seemingly better) resolution is satisfied with a representative democracy. When voting for a representative -; voters are forced to prioritize their concerns -; thus making those who are more passionate about an issue also more influential. Libertarianism -; on the other hand -; is a tyranny of the minority. The libertarian minority wishes to impose their unpopular system of dogmatic property rights onto others. Moreover -; “votes” in their system are dollars -; distributed through the privileges and disadvantages of the unjust birth lottery. Lie #5: Libertarians are against big government Lie #6 is even more egregious when you realize that libertarians are not -; in fact -; opposed to big government at all. That’s because the foundation of libertarianism is property rights. What are property rights? They are restrictions on who can and cannot use property. Who enforces property rights? Most libertarians agree that the government should -; in fact -; enforce property rights. It doesn’t take a genius to understand that a government that gives to the poor is no bigger than a government that protects the property of the rich. In fact -; the government that protects the rich is the real “big brother.” Because the capitalist distribution of wealth does not reflect the will of the people -; a government which protects that distribution of wealth will need to be larger so as to fight against a democratic uprising. Lie #4: Libertarians are against aggression -; violence -; and force All of this inevitably points to an uncomfortable truth for libertarians: that they are just as aggressive -; violent -; and forceful as the rest of us. Their property rights are not peaceful. Imagine -; for a moment -; a scenario in which the IRS walks into your house and collects your taxes from a pile of cash on your table. When you find out -; libertarians say that you can turn a gun on the IRS -; then physically wrench the money from their hands. In this scenario -; how in the world are you not the one initiating aggressive force? The IRS never touched you or threatened you. Yes -; they took what you consider your property. But if the action was aggressive simply because they took what you personally consider to be your property -; then you’re essentially redefining aggression simply as “anything that I personally dislike.” Lie #3: Libertarians are moderates This is a Johnson favorite. He loves to point out that he sides with Sanders on 73% of the issues. He and the libertarians like to say that they are “fiscally conservative and socially liberal.” This calls to mind an illusion of moderation -; of taking the best elements of both parties. Many libertarians want to get rid of public schools And of course it’s completely false. First of all -; “fiscal conservatism” implies careful spending -; not slashing spending because of your dogmatic beliefs. Libertarian fiscal policies are more than just fiscal conservatism -; they are downright lunacy. Most libertarians support the virtual elimination of taxes -; Social Security -; Medicare -; Medicaid -; food stamps -; minimum wages -; and public schools. Second of all -; libertarians inevitably prioritize their fiscal conservatism ahead of social liberalism. Every influential libertarian - Hayek -; Rand -; Friedman -; Mises -; Paul - is known for their economics. Finally -; it is impossible to separate fiscal and social issues. There is nothing socially liberal about screwing over the poor. There is nothing socially liberal about private prisons or feeding a glut of gun murders. There is nothing socially liberal about standing by expressions of hatred and discrimination. Lie #2: A deregulated market helps the poor and the middle class Libertarians like to say that the “free” market is a “tide that raises all boats.” Sometimes I wonder whether any libertarian has ever cracked open a history book. History offers a number of examples of deregulated markets and many examples of strong representative governments. That history lesson is clear. The most notable example of a libertarian society was the US during the Gilded Age -; a time with virtually no taxes or regulations. Libertarians would be correct to point that aggregate production increased significantly during this period. That is a key characteristic of capitalism; endless production on the backs of the many -; serving the few. The average industrial worker at the time worked 60 hours a week -; making an inflation-adjusted $2 an hour. Children worked in horrific and life-threatening conditions to support their impoverished families. 40% of the population had no wealth at all. Instead -; the wealth all accumulated to a handful of robber barons and their engorged monopolies. Moreover -; the business cycle and financial industry were also completely unregulated. This led to a series of depressions -; including the longest recession in our history. Since the onset of New Deal regulations -; the US has not once experienced a depression. Much like welfare programs in other countries -; the Great Society slashed poverty in the United States. The post-war period -; when we had 91% marginal tax rates -; contained possibly the greatest and most equitable economic boom in US history. Unfortunately -; this would end with the onset of deregulation and Reagan’s tax cuts. Meanwhile -; a different group of nations took the place of the US. The Nordic countries have the highest taxes in the world. Incidentally -; they beat the US in happiness rankings -; median income -; median wealth -; every measurement of quality of life -; as well as life expectancy. Lie #1: Libertarians love freedom . Libertarians talk about freedom -; then cheer on the right to discriminate This may come as a shock for some libertarians -; who built their entire ideology on the notion of freedom: no -; you do not believe in freedom at all. Freedom means “the power or right to act -; speak -; or think as one wants without hindrance or restraint.” That involves positive freedom -; i.e. the freedom that we need to create for others. If someone working a full-time job can’t pay for her groceries -; she does not have freedom. If a sick child is not provided healthcare because her parents cannot afford it -; she does not have freedom. If a young black man cannot attend a private college because of racist administrators -; he does not have freedom. Libertarians oppose mandated help for all of these people -; instead championing the freedom of those who refuse to help. Ardent libertarians will contort and embarrass themselves to avoid this inescapable truth. Negative rights can be consistent -; they’ll argue -; while positive rights contradict each other. Do you know what doesn’t contradict itself? Always looking to help others as much as possible. When you can have such a noble goal -; why follow the arbitrary and destructive goal of dogmatic negative freedom? In fact -; libertarians do not pursue negative freedom -; as evidenced by the IRS example noted in Lie #4. The reason that libertarians tie themselves up in knots is as simple as it is breathtaking: they are simply pawns in the game of their corporate masters. In their quest for power -; the 1% will do anything -; even invade our discourse with their sorry and pathetic talking points. But as this election has shown -; the people will only take it so long. Like it or not -; the revolution is coming.
For a short time -; it seemed like the libertarian cancer in American politics was finally dead. Rand Paul -; the supposedly electableson of Ron Paul -; ended his train wreck of a campaign after a pathetic showing at the polls. The Republicans instead chose Donald Trump -; the least libertarian candidate in the race. On the Democratic side -; democratic socialist Bernie Sanders built a massive movement around his decidedly anti-libertarian ideas. But I should have known better than to discount the corporate class. Led by the Koch brothers -; the 1% did not give up on their agenda. As their traditional Republican venues disappeared -; they headed to their last resort: the Libertarian Party. Lie #10: The founding fathers were libertarian More than anything else -; libertarians love to call themselves “classical liberals -;” beckoning us back to the early days of this nation. For a group that despises our government -; they have a strange admiration for those who created itt It is unlikely that many of the founders would have admired them back. In the late 1700s -; governments across the world were almost universally undemocratic. Within that context -; some of the founders were wary of government overreach. However -; they did not focus their disapproval on regulations and services designed to protect the poor. In fact -; “classical liberal” Thomas Jefferson vocally supported progressive taxation -; adding that “whenever there are in any country uncultivated lands and unemployed poor -; it is clear that the laws of property have been so far extended as to violate natural right.” Similarly -; John Jay said that “nothing is more certain than the indispensable necessity of government [and the idea that] the people must cede to it some of their natural rights.” While I’m no great fan of the founding fathers -; they were no libertarians. Lie #9: The problem is crony capitalism -; not capitalism When we point out the injustices within the capitalist system -; libertarians will often claim that the real problem is “crony capitalism.” While it is sadly true that the rich often do get favors -; blaming “crony capitalism” reflects a disturbing naivete. The poor both pay less to and receive more from the US government than the rich -; yet our system is still grotesquely unfair and tilted against the disadvantaged. It’s not crony capitalism that’s behind this unfair tax system - it is capitalism. It’s also not crony capitalism that allows employers to pay their workers starvation wages - it is capitalism. Nor is it crony capitalism that incentivizes collusion -; fraud -; and the creation of barriers to entry - it is capitalism. Finally -; it’s not crony capitalism that rewards class privilege -; -; and intellectual privilege- it is capitalism. The reality is that the neoliberal destruction of the middle class did not come about through crony capitalist giveaways -; which are barely reflected in the government budget. It came about through the tax cuts -; spending cuts -; and deregulation championed by libertarians. Lie #8: Tax cuts trickle down Incidentally -; this lie is more often associated with conservatives than libertarians. Many libertarians are dogmatic radicals who oppose all taxation -; and for them -; it doesn’t matter whether tax cuts hurt the poor and the middle class. However -; there are a number of libertarians who -; like conservatives -; point at the Laffer curve -; and say that cutting taxes can actually increase our tax revenue through economic growth. Obviously -; cutting taxes to 0% (or 5%) will not increase tax revenues. There is a revenue-maximizing rate…and economists estimate that it is between 68% and 80%. Tax cuts won’t increase tax revenue -; since our highest tax rates aren’t even remotely close to those numbers. And while tax cuts for the rich do stimulate the economy to some extent -; in the end they are usually paid for through devastating cuts to social programs. Plus -; wealth transfers to the needy offer a far greater stimulus. Lie #7: The rich deserve to be rich -; and the poor deserve to be poor This is perhaps the most revolting libertarian lie -; that the rich “earned” their wealth -; and that the poor are just lazy. Libertarians use this lie to justify everything from their hatred of taxation to their shameful neglect of the poor. It is also ridiculously easy to disprove. Adult children make -; on average -; 33 additional cents for every dollar that their parents make. Of those born in the bottom 20% in the income distribution -; 43% remain in the bottom 20% -; and 70% remain in the bottom 40%. Of those born in the top 20% -; 40% remain there. That’s not because they are getting government favors. It’s because in a capitalist society -; those who win the birth lottery have countless advantages. Furthermore -; for every dollar that a white man makes -; a white woman makes 78 cents -; a black woman makes 64 cents -; and a Hispanic woman makes 54 cents. The income of those with IQ scores in the top 10% is more than double the income of those with an average IQ. Those with certain personality attributes -; like extroversion -; also have higher incomes. 65 people own as much as 3 -;500 -;000 -;000. None of this has anything to do with hard work. In fact -; the productivity of the bottom 90% has increased as their wages remain stagnant. The truth is that our distribution of wealth is wholly based on the lottery of birth -; the injustice of capitalism. Progressives reject that injustice. Their solution is not to have everyone make the same -; but to help those who fell through the cracks through no fault of their own. They support welfare policies that not only don’t discourage the poor from working -; but actually cause them to work harder. Lie #6: Government is tyrannical This is perhaps the most successful libertarian lie; the notion that representative government is inherently tyrannical. When they frame the debate as us (the people) vs. them (the government) -; they ignore that we collectively are -; in fact -; our democratically elected government. When this challenge is brought up -; libertarians tend to counter that they didn’t vote for the government -; so it’s a “tyranny of the majority.” This -; once again -; exposes the libertarians’ hopeless naivete. Conflict will always exist in some form -; in which no resolution will ultimately satisfy either person. Therefore -; the just resolution of a conflict will be one of these two options: 1. The resolution which satisfies the most people. 2. The resolution which leads to the most overall satisfaction. Libertarians think this woman is participating in a system of tyranny https://miro.medium.com/max/1335/1*dwhrcvz3aJVwMdm_rFcgzA.jpeg The first resolution is satisfied by a direct democracy. The second (seemingly better) resolution is satisfied with a representative democracy. When voting for a representative -; voters are forced to prioritize their concerns -; thus making those who are more passionate about an issue also more influential. Libertarianism -; on the other hand -; is a tyranny of the minority. The libertarian minority wishes to impose their unpopular system of dogmatic property rights onto others. Moreover -; “votes” in their system are dollars -; distributed through the privileges and disadvantages of the unjust birth lottery. Lie #5: Libertarians are against big government Lie #6 is even more egregious when you realize that libertarians are not -; in fact -; opposed to big government at all. That’s because the foundation of libertarianism is property rights. What are property rights? They are restrictions on who can and cannot use property. Who enforces property rights? Most libertarians agree that the government should -; in fact -; enforce property rights. It doesn’t take a genius to understand that a government that gives to the poor is no bigger than a government that protects the property of the rich. In fact -; the government that protects the rich is the real “big brother.” Because the capitalist distribution of wealth does not reflect the will of the people -; a government which protects that distribution of wealth will need to be larger so as to fight against a democratic uprising. Lie #4: Libertarians are against aggression -; violence -; and force All of this inevitably points to an uncomfortable truth for libertarians: that they are just as aggressive -; violent -; and forceful as the rest of us. Their property rights are not peaceful. Imagine -; for a moment -; a scenario in which the IRS walks into your house and collects your taxes from a pile of cash on your table. When you find out -; libertarians say that you can turn a gun on the IRS -; then physically wrench the money from their hands. In this scenario -; how in the world are you not the one initiating aggressive force? The IRS never touched you or threatened you. Yes -; they took what you consider your property. But if the action was aggressive simply because they took what you personally consider to be your property -; then you’re essentially redefining aggression simply as “anything that I personally dislike.” Lie #3: Libertarians are moderates This is a Johnson favorite. He loves to point out that he sides with Sanders on 73% of the issues. He and the libertarians like to say that they are “fiscally conservative and socially liberal.” This calls to mind an illusion of moderation -; of taking the best elements of both parties. Many libertarians want to get rid of public schools And of course it’s completely false. First of all -; “fiscal conservatism” implies careful spending -; not slashing spending because of your dogmatic beliefs. Libertarian fiscal policies are more than just fiscal conservatism -; they are downright lunacy. Most libertarians support the virtual elimination of taxes -; Social Security -; Medicare -; Medicaid -; food stamps -; minimum wages -; and public schools. Second of all -; libertarians inevitably prioritize their fiscal conservatism ahead of social liberalism. Every influential libertarian - Hayek -; Rand -; Friedman -; Mises -; Paul - is known for their economics. Finally -; it is impossible to separate fiscal and social issues. There is nothing socially liberal about screwing over the poor. There is nothing socially liberal about private prisons or feeding a glut of gun murders. There is nothing socially liberal about standing by expressions of hatred and discrimination. Lie #2: A deregulated market helps the poor and the middle class Libertarians like to say that the “free” market is a “tide that raises all boats.” Sometimes I wonder whether any libertarian has ever cracked open a history book. History offers a number of examples of deregulated markets and many examples of strong representative governments. That history lesson is clear. The most notable example of a libertarian society was the US during the Gilded Age -; a time with virtually no taxes or regulations. Libertarians would be correct to point that aggregate production increased significantly during this period. That is a key characteristic of capitalism; endless production on the backs of the many -; serving the few. The average industrial worker at the time worked 60 hours a week -; making an inflation-adjusted $2 an hour. Children worked in horrific and life-threatening conditions to support their impoverished families. 40% of the population had no wealth at all. Instead -; the wealth all accumulated to a handful of robber barons and their engorged monopolies. Moreover -; the business cycle and financial industry were also completely unregulated. This led to a series of depressions -; including the longest recession in our history. Since the onset of New Deal regulations -; the US has not once experienced a depression. Much like welfare programs in other countries -; the Great Society slashed poverty in the United States. The post-war period -; when we had 91% marginal tax rates -; contained possibly the greatest and most equitable economic boom in US history. Unfortunately -; this would end with the onset of deregulation and Reagan’s tax cuts. Meanwhile -; a different group of nations took the place of the US. The Nordic countries have the highest taxes in the world. Incidentally -; they beat the US in happiness rankings -; median income -; median wealth -; every measurement of quality of life -; as well as life expectancy. Lie #1: Libertarians love freedom . Libertarians talk about freedom -; then cheer on the right to discriminate This may come as a shock for some libertarians -; who built their entire ideology on the notion of freedom: no -; you do not believe in freedom at all. Freedom means “the power or right to act -; speak -; or think as one wants without hindrance or restraint.” That involves positive freedom -; i.e. the freedom that we need to create for others. If someone working a full-time job can’t pay for her groceries -; she does not have freedom. If a sick child is not provided healthcare because her parents cannot afford it -; she does not have freedom. If a young black man cannot attend a private college because of racist administrators -; he does not have freedom. Libertarians oppose mandated help for all of these people -; instead championing the freedom of those who refuse to help. Ardent libertarians will contort and embarrass themselves to avoid this inescapable truth. Negative rights can be consistent -; they’ll argue -; while positive rights contradict each other. Do you know what doesn’t contradict itself? Always looking to help others as much as possible. When you can have such a noble goal -; why follow the arbitrary and destructive goal of dogmatic negative freedom? In fact -; libertarians do not pursue negative freedom -; as evidenced by the IRS example noted in Lie #4. The reason that libertarians tie themselves up in knots is as simple as it is breathtaking: they are simply pawns in the game of their corporate masters. In their quest for power -; the 1% will do anything -; even invade our discourse with their sorry and pathetic talking points. But as this election has shown -; the people will only take it so long. Like it or not -; the revolution is coming.
For a short time -; it seemed like the libertarian cancer in American politics was finally dead. Rand Paul -; the supposedly electableson of Ron Paul -; ended his train wreck of a campaign after a pathetic showing at the polls. The Republicans instead chose Donald Trump -; the least libertarian candidate in the race. On the Democratic side -; democratic socialist Bernie Sanders built a massive movement around his decidedly anti-libertarian ideas. But I should have known better than to discount the corporate class. Led by the Koch brothers -; the 1% did not give up on their agenda. As their traditional Republican venues disappeared -; they headed to their last resort: the Libertarian Party. Lie #10: The founding fathers were libertarian More than anything else -; libertarians love to call themselves “classical liberals -;” beckoning us back to the early days of this nation. For a group that despises our government -; they have a strange admiration for those who created itt It is unlikely that many of the founders would have admired them back. In the late 1700s -; governments across the world were almost universally undemocratic. Within that context -; some of the founders were wary of government overreach. However -; they did not focus their disapproval on regulations and services designed to protect the poor. In fact -; “classical liberal” Thomas Jefferson vocally supported progressive taxation -; adding that “whenever there are in any country uncultivated lands and unemployed poor -; it is clear that the laws of property have been so far extended as to violate natural right.” Similarly -; John Jay said that “nothing is more certain than the indispensable necessity of government [and the idea that] the people must cede to it some of their natural rights.” While I’m no great fan of the founding fathers -; they were no libertarians. Lie #9: The problem is crony capitalism -; not capitalism When we point out the injustices within the capitalist system -; libertarians will often claim that the real problem is “crony capitalism.” While it is sadly true that the rich often do get favors -; blaming “crony capitalism” reflects a disturbing naivete. The poor both pay less to and receive more from the US government than the rich -; yet our system is still grotesquely unfair and tilted against the disadvantaged. It’s not crony capitalism that’s behind this unfair tax system - it is capitalism. It’s also not crony capitalism that allows employers to pay their workers starvation wages - it is capitalism. Nor is it crony capitalism that incentivizes collusion -; fraud -; and the creation of barriers to entry - it is capitalism. Finally -; it’s not crony capitalism that rewards class privilege -; -; and intellectual privilege- it is capitalism. The reality is that the neoliberal destruction of the middle class did not come about through crony capitalist giveaways -; which are barely reflected in the government budget. It came about through the tax cuts -; spending cuts -; and deregulation championed by libertarians. Lie #8: Tax cuts trickle down Incidentally -; this lie is more often associated with conservatives than libertarians. Many libertarians are dogmatic radicals who oppose all taxation -; and for them -; it doesn’t matter whether tax cuts hurt the poor and the middle class. However -; there are a number of libertarians who -; like conservatives -; point at the Laffer curve -; and say that cutting taxes can actually increase our tax revenue through economic growth. Obviously -; cutting taxes to 0% (or 5%) will not increase tax revenues. There is a revenue-maximizing rate…and economists estimate that it is between 68% and 80%. Tax cuts won’t increase tax revenue -; since our highest tax rates aren’t even remotely close to those numbers. And while tax cuts for the rich do stimulate the economy to some extent -; in the end they are usually paid for through devastating cuts to social programs. Plus -; wealth transfers to the needy offer a far greater stimulus. Lie #7: The rich deserve to be rich -; and the poor deserve to be poor This is perhaps the most revolting libertarian lie -; that the rich “earned” their wealth -; and that the poor are just lazy. Libertarians use this lie to justify everything from their hatred of taxation to their shameful neglect of the poor. It is also ridiculously easy to disprove. Adult children make -; on average -; 33 additional cents for every dollar that their parents make. Of those born in the bottom 20% in the income distribution -; 43% remain in the bottom 20% -; and 70% remain in the bottom 40%. Of those born in the top 20% -; 40% remain there. That’s not because they are getting government favors. It’s because in a capitalist society -; those who win the birth lottery have countless advantages. Furthermore -; for every dollar that a white man makes -; a white woman makes 78 cents -; a black woman makes 64 cents -; and a Hispanic woman makes 54 cents. The income of those with IQ scores in the top 10% is more than double the income of those with an average IQ. Those with certain personality attributes -; like extroversion -; also have higher incomes. 65 people own as much as 3 -;500 -;000 -;000. None of this has anything to do with hard work. In fact -; the productivity of the bottom 90% has increased as their wages remain stagnant. The truth is that our distribution of wealth is wholly based on the lottery of birth -; the injustice of capitalism. Progressives reject that injustice. Their solution is not to have everyone make the same -; but to help those who fell through the cracks through no fault of their own. They support welfare policies that not only don’t discourage the poor from working -; but actually cause them to work harder. Lie #6: Government is tyrannical This is perhaps the most successful libertarian lie; the notion that representative government is inherently tyrannical. When they frame the debate as us (the people) vs. them (the government) -; they ignore that we collectively are -; in fact -; our democratically elected government. When this challenge is brought up -; libertarians tend to counter that they didn’t vote for the government -; so it’s a “tyranny of the majority.” This -; once again -; exposes the libertarians’ hopeless naivete. Conflict will always exist in some form -; in which no resolution will ultimately satisfy either person. Therefore -; the just resolution of a conflict will be one of these two options: 1. The resolution which satisfies the most people. 2. The resolution which leads to the most overall satisfaction. Libertarians think this woman is participating in a system of tyranny https://miro.medium.com/max/1335/1*dwhrcvz3aJVwMdm_rFcgzA.jpeg The first resolution is satisfied by a direct democracy. The second (seemingly better) resolution is satisfied with a representative democracy. When voting for a representative -; voters are forced to prioritize their concerns -; thus making those who are more passionate about an issue also more influential. Libertarianism -; on the other hand -; is a tyranny of the minority. The libertarian minority wishes to impose their unpopular system of dogmatic property rights onto others. Moreover -; “votes” in their system are dollars -; distributed through the privileges and disadvantages of the unjust birth lottery. Lie #5: Libertarians are against big government Lie #6 is even more egregious when you realize that libertarians are not -; in fact -; opposed to big government at all. That’s because the foundation of libertarianism is property rights. What are property rights? They are restrictions on who can and cannot use property. Who enforces property rights? Most libertarians agree that the government should -; in fact -; enforce property rights. It doesn’t take a genius to understand that a government that gives to the poor is no bigger than a government that protects the property of the rich. In fact -; the government that protects the rich is the real “big brother.” Because the capitalist distribution of wealth does not reflect the will of the people -; a government which protects that distribution of wealth will need to be larger so as to fight against a democratic uprising. Lie #4: Libertarians are against aggression -; violence -; and force All of this inevitably points to an uncomfortable truth for libertarians: that they are just as aggressive -; violent -; and forceful as the rest of us. Their property rights are not peaceful. Imagine -; for a moment -; a scenario in which the IRS walks into your house and collects your taxes from a pile of cash on your table. When you find out -; libertarians say that you can turn a gun on the IRS -; then physically wrench the money from their hands. In this scenario -; how in the world are you not the one initiating aggressive force? The IRS never touched you or threatened you. Yes -; they took what you consider your property. But if the action was aggressive simply because they took what you personally consider to be your property -; then you’re essentially redefining aggression simply as “anything that I personally dislike.” Lie #3: Libertarians are moderates This is a Johnson favorite. He loves to point out that he sides with Sanders on 73% of the issues. He and the libertarians like to say that they are “fiscally conservative and socially liberal.” This calls to mind an illusion of moderation -; of taking the best elements of both parties. Many libertarians want to get rid of public schools And of course it’s completely false. First of all -; “fiscal conservatism” implies careful spending -; not slashing spending because of your dogmatic beliefs. Libertarian fiscal policies are more than just fiscal conservatism -; they are downright lunacy. Most libertarians support the virtual elimination of taxes -; Social Security -; Medicare -; Medicaid -; food stamps -; minimum wages -; and public schools. Second of all -; libertarians inevitably prioritize their fiscal conservatism ahead of social liberalism. Every influential libertarian - Hayek -; Rand -; Friedman -; Mises -; Paul - is known for their economics. Finally -; it is impossible to separate fiscal and social issues. There is nothing socially liberal about screwing over the poor. There is nothing socially liberal about private prisons or feeding a glut of gun murders. There is nothing socially liberal about standing by expressions of hatred and discrimination. Lie #2: A deregulated market helps the poor and the middle class Libertarians like to say that the “free” market is a “tide that raises all boats.” Sometimes I wonder whether any libertarian has ever cracked open a history book. History offers a number of examples of deregulated markets and many examples of strong representative governments. That history lesson is clear. The most notable example of a libertarian society was the US during the Gilded Age -; a time with virtually no taxes or regulations. Libertarians would be correct to point that aggregate production increased significantly during this period. That is a key characteristic of capitalism; endless production on the backs of the many -; serving the few. The average industrial worker at the time worked 60 hours a week -; making an inflation-adjusted $2 an hour. Children worked in horrific and life-threatening conditions to support their impoverished families. 40% of the population had no wealth at all. Instead -; the wealth all accumulated to a handful of robber barons and their engorged monopolies. Moreover -; the business cycle and financial industry were also completely unregulated. This led to a series of depressions -; including the longest recession in our history. Since the onset of New Deal regulations -; the US has not once experienced a depression. Much like welfare programs in other countries -; the Great Society slashed poverty in the United States. The post-war period -; when we had 91% marginal tax rates -; contained possibly the greatest and most equitable economic boom in US history. Unfortunately -; this would end with the onset of deregulation and Reagan’s tax cuts. Meanwhile -; a different group of nations took the place of the US. The Nordic countries have the highest taxes in the world. Incidentally -; they beat the US in happiness rankings -; median income -; median wealth -; every measurement of quality of life -; as well as life expectancy. Lie #1: Libertarians love freedom . Libertarians talk about freedom -; then cheer on the right to discriminate This may come as a shock for some libertarians -; who built their entire ideology on the notion of freedom: no -; you do not believe in freedom at all. Freedom means “the power or right to act -; speak -; or think as one wants without hindrance or restraint.” That involves positive freedom -; i.e. the freedom that we need to create for others. If someone working a full-time job can’t pay for her groceries -; she does not have freedom. If a sick child is not provided healthcare because her parents cannot afford it -; she does not have freedom. If a young black man cannot attend a private college because of racist administrators -; he does not have freedom. Libertarians oppose mandated help for all of these people -; instead championing the freedom of those who refuse to help. Ardent libertarians will contort and embarrass themselves to avoid this inescapable truth. Negative rights can be consistent -; they’ll argue -; while positive rights contradict each other. Do you know what doesn’t contradict itself? Always looking to help others as much as possible. When you can have such a noble goal -; why follow the arbitrary and destructive goal of dogmatic negative freedom? In fact -; libertarians do not pursue negative freedom -; as evidenced by the IRS example noted in Lie #4. The reason that libertarians tie themselves up in knots is as simple as it is breathtaking: they are simply pawns in the game of their corporate masters. In their quest for power -; the 1% will do anything -; even invade our discourse with their sorry and pathetic talking points. But as this election has shown -; the people will only take it so long. Like it or not -; the revolution is coming.
Some math regarding the hypernet raffles (Profit from buyer's and seller's perspective)
I haven't seen this done yet (but I don't check the official forums and might have missed this so I apologise in advance if someone has already done the calculations) and I did some calculations for the hypernet raffles.
Notation: I - Actual worth of the item M - Markup for the item N - Total number of hypernodes available A - Number of hypernodes bought R - Tax rate p - probability that all hypernodes are bought
Buyer's perspective:
In the buyer's perspective, you can buy A out of the N possible hypernodes, where A = 1, 2, ..., N. This means that the probability of winning the item is A/N and the probability that you do not win is (N-A)/N. The cost of a single ticket is (I+M)/N, where I+M represents the total cost of all of the tickets.
Supposing that we buy A tickets, the profit if we win is: I - (I+M)*A/N with probability A/N And if we lose, then the profit is (I+M)*A/N with probability (N-A)/N Since the (I+M)*A/N is in both expressions, the expected profit becomes I * A/N - (I+M)*A/N = -MA/N which approaches -M as we buy more hypernodes.
So the expected profit from the buyer's perspective will always be negative (assuming that the seller isn't underpricing the item and the markup is positive). This is for a single raffle, but since the expected profit is always negative, the expected profit for any number of raffles entered will still be negative.
So in the long run, the optimal strategy for a buyer is to not play.
Seller's perspective:
Now for the seller's point of view, we should consider the amount of profit that the seller makes and how to price the markup appropriately. In this case, we are assuming that the seller does not originally own the item, so the seller must first buy the item for a price I.
Assuming that all the hypernodes are bought, then the seller will expect to make (I + M)(1 - R), i.e., the total cost of the tickets minus the tax rate The amount of profit is equal to (I+M)(1 - R) - I. In order for this to be positive, then we must have M > I(1 - R). For example, if the tax rate is 5%, then (1-R) = 5.26%, and the markup should be at least 5.26% for a profit to be made.
Now what happens if we factor in the probability that not all of the hypernodes are bought?
Using p as defined above, the expected profit (and let the tax rates be represented by R_B and R_S for the broker's fee and sales tax respectively) becomes (M - (I+M) * (R_B + R_S )) * p + (1 - p) * - (I+M) * R_B), which is the same as (M- (I + M) * R_S) * p - (I+M) * R_B, since the taxes (I+M) * R_B are paid regardless of whether or not the nodes are fulfilled. Then, accounting for the probability that the nodes do not all sell, the seller must then choose M such that M > (I * (R_B + R_S * p)/(p * (1 - R_S) - R_B), where R_B /(1 - R_S) < p <= 1 and we should not sell at all if we expect the probability p to be less than or equal to R_B / (1 - R_S).
Should the seller attempt to buy back the item?
In this case, the seller also acts as a buyer, and the expected value of the transaction is simply the summation of the expected value from the buyer's persective and the expected value from the seller's perspective. So, the expected value becomes (M- (I + M) * R_S) * p - (I+M) * R_B - MA/N < (M- (I + M) * R_S) * p - (I+M) * R_B. In this case, the optimal strategy is to not attempt to buy back the item.
Our calculations are simplified since we do not need to account for multiple winners like in the actual lottery where winnings are shared.
Edit
Actually, in the scenario where the seller already owns the item, the expected profit is always greater than 0 if p > R_B/(1 - R_S).
Second edit
Added in the difference between broker's fee and sales tax
tl;dr: buyer's optimal strategy is to not play, seller's markup pricing outlined above
"These 16 money wasters are why so many Americans can’t save for retirement"
I subscribe to marketwatch for investment news and came across a lovely opinion piece on why we can't save for retirement. Do these categories apply to things you "waste" money on? By Richard Quinn Published: June 15, 2019 "Here are 16 things that this 75-year-old considers big money wasters:
Tattoos. They’re an admitted obsession of mine. What will they look like when you’re my age? From what I’ve heard, a good tattoo artist charges $200 an hour.
Vacations. Hey, everyone needs a break. But you don’t need to go into tuition-level debt to have a good time. Your kids will survive if they never visit the Magic Kingdom.
College. Picking a college involves many factors. Affordability is one that’s often overlooked. If the cost of the school you choose will land you in debt, you’d better have a plan for paying it off. Don’t mortgage your future, just so you can have a prestigious decal on your car window.
Restaurants. Eating out, or buying $4 designer coffee, is expensive and—wait for it—it’s also a luxury. Skip that daily $4 coffee and after 30 years you’ll have more than $121,000, assuming a 0.5% monthly return.
Opportunities lost. We do it every day by failing to grab the employer match on our 401(k) plan, not investing in a tax-free Roth IRA, failing to fund a flexible spending account to pay medical costs with pretax dollars, and withholding too much from our paycheck, so we’re essentially making an interest-free loan to the IRS.
Transportation. You don’t “need” an SUV or $40,000-plus pickup truck to get from A to B. My four kids grew up riding in our 1972 Duster. Now they, too, all have trucks or SUVs.
Credit cards. When people say they live paycheck to paycheck, does that include purchases put on credit cards that aren’t paid off that month? In that case, they’re spending more than their paycheck—and what they buy will cost them the purchase price, plus a hefty interest rate.
Lottery. The lowest-income groups spend the most on lottery tickets, wasting hundreds of dollars a year—about the same as that $400 emergency fund they don’t have. Not to worry: 60% of millennials think winning the lottery is part of a wise retirement strategy.
Clothing. My new condo has two bedrooms and three walk-in closets, two of them larger than the bathroom in my old 1929 house. The average adult spends $161 a month on clothing. We are obsessed with keeping up with the latest fashions and ensuring nobody sees us in the same clothes twice."
The contempt this man writes with is laughable to me. I do not have tattoos. I have never even had vacation time offered to me, so never been on vacation. I can say that the jobs I've worked have given me a headache for taking off to go to the doctor. College is college. I do not make enough to start a 401k. My car was bought as an A to B car. Fuel efficiency was the number one factor for me but I pay a f*** ton in insurance because I do not have the option to bundle with older relatives. I do not have a family relationship at all. Credit cards prevent people from starving. Most people I know do not go buy ridiculous things they can't pay off. They buy gas and groceries. I don't play the lottery. I haven't bought clothes in a year and it's usually no more than 100 for the year so less than $10 a month. I rarely eat out and make coffee at home but I'm not all of sudden well off. 0x0 does not equal 1. You have to make enough money to save money. https://www.marketwatch.com/story/these-16-money-wasters-are-why-so-many-americans-cant-save-for-retirement-2019-05-08?siteid=yhoof2&yptr=yahoo
My friend offered me $1000 winning lottery ticket for $600, is it worth it?
My friend just won $1000 dollars on a scratch off in New Jersey. He wants to stay off the books, plus he needs the cash now, so he offered me the winning ticket for $600. After taxes and everything, is this worth doing? This is not a scam and he is trustworthy, but i dont know if i will end up losing money after taxes or make some money. He says after all is said and done, i will have to pay about $125 in taxes at the end of the year, is this accurate?
17 Great Ways to Save Money When You Are Broke Saving money is essential in order for you to turn your financial situation around because it builds a safety net to help you cover random expenses whenever life throws them your way. Life can be very unexpected, so having a decent amount of savings can help you feel more financially secure,
1. Go through every meal kit subscription in the universe.
Seriously, try them all. Just remember to cancel your subscription after those $60 off, first-five-meals-are-free coupons have stopped kicking in.
2. Make a list of your luxury items and see what can stay and what can go.
Do you really need a paid Spotify account when the free one also works extremely well? How about your Hulu, Netflix, Mubi, and HBOGo accounts? You can cut back on two and get a library card—most libraries let you rent DVDs and stream movies and TV shows now too. And ask yourself if some of your other monthly expenses are really that necessary. Is the super-fancy gym membership necessary, or would a more basic gym be Just Fine? (It would. And you can bring your own expensive shower products—worth it).
3. Family plan it up.
And when you decide that yes, yes, you really do need Hulu, Netflix, Mubi, HBOGo, and a paid Spotify account, start up a share system with friends and family. It takes a few minutes of planning, but if everyone in your group subscribes to one service, you’ll all save big bucks.
4. Be the host when you hang out with friends.
If your house becomes the hangout spot, you can avoid spending wildly overpriced bar prices for a glass of wine (and bonus, you don’t have to worry about finding your way home if you party too hard). Or create invites for BYO drinks-and-snacks picnics in the park—everyone shares, and you don’t even have to clean your place after.
5. You can find really, really good stuff used.
If you check out garage sales and secondhand shops, you’ll find plenty of clothes (not to mention furniture and a seemingly endless supply of charmingly mismatched, shabby-chic glassware) for cheap. Try searching your town’s name plus the word “garage sale” in the Facebook search bar to find a ton of local postings. For furniture, sites like Craigslist and online community boards like Nextdoor are fantastic. You can get practically brand-new, high-quality items by just throwing the name of a brand you’re interested in (“Crate & Barrel”) into the search tool. And check out sites like Thredup that are basically gigantic online thrift stores. You can get really well-made, designer clothes for 1/16 of the retail price, and it’s a far more environmentally friendly way to live.
6. Get your cash right.
While lots of different savings accounts offer interest, credit unions typically have better rates and higher limits. You can also try the Mint app—it can help you figure out what you’re spending where and how to do better—use the discount-code-whiz Honey app whenever you shop online (it’s kind of amazing), and give the cash-back Ibotta app a go, because why not.
7. Check out discounted services.
Groupon hasn’t been as popular in the past few years as it used to be, but redownload it—it’s not just for restaurants. You can find everything from haircuts and spa services to dental and eye exams.
8. Do odd jobs.
This one kinda goes without saying, but if your paychecks aren’t stretching and you have some free time, a side gig is always helpful. You can always opt for Lyft and Taskrabbit, but don’t forget the classics like babysitting gigs (which you can find on Care), dog-walking (Wag!), or using sites like Upwork to make a few extra dollars doing creative tasks. Plus, having a fun side-gig like dog walking to occupy some of your free hours will keep you from overspending (… and the bonus cash doesn’t hurt).
9. Revamp your dining style.
Meal prepping can help you with eating healthy while saving money (and avoiding waste). Also, check out food co-ops to save money on fresh produce, always buy dry goods like paper towels in bulk, and don’t overlook the cheap (and delicious) benefit of starting your own garden. You can also create budget-friendly rules for yourself, like prepping food for meals you’ll be eating alone, which can create a little room for a dining-out budget with friends. And pro tip: If you start meeting friends for breakfasts instead of dinner and drinks, it’s way, way cheaper—and a really lovely way to start the morning. If you’re someone who just hates meal planning and is always going to eat lunch out every day, try a service like Mealpal. You can buy a bundle of lunches from local spots for less than $6 a meal, and the company has great intro packages (like we’re talking 40 percent off) too.
10. Think before you spend.
It’s really easy to see something you want and drop a stack right then and there. But what if you just… didn’t? Adopt a two-week to 30-day policy before spending money on non-emergencies. Corporations spend a lot of time and money researching the absolute best ways to get you to spend before you have the chance to think, but you can avoid their Jedi mind tricks if you spend some time thinking first, do price comparisons, and assess value. Think first; spend later. It’s less fun in the moment but more fun when you realize you totally have the cash to go on vacation later this year.
11. Dust off your bike.
You can save so much money on transportation (plus give yourself a good cardio workout and avoid using fossil fuels) by opting for a bike ride over taking a train or a car. Don’t want to make the investment in a bike of your own? Check to see if your city has a bike-share program and hop on one of those bad boys—your wallet will feel the relief as much as your feet.
12. Put a personal trainer in your pocket.
These days, there are so, so many different options for in-app fitness, and they’re all super customizable for your workout needs. So even though having the one-on-one attention of a personal trainer is the bomb.com, we guarantee there’s a muuuuuch cheaper way for you to get that workout and still have it be, well… personal. At least until you win the lottery, that is.
13. Two words: Trader Joe’s.
This—and every other brand shoutout in this article—is not an #ad. But the entire Greatist office is obsessed with TJ’s, and we don’t care who knows it. We’ll shout it from the top of a tower of Trader Joe’s almond milk because it’s only $1.99 so we can afford it! Seriously—not only do we love their products (have you had this?! Or this?!), but you can’t beat the prices on typically expensive items like quinoa or blueberries. Trust us when we say that the amount of food you can get for your money will practically double what you’d scrounge together at another grocery store. Long live the Hawaiian shirt!
14. Get scrappy with your movie/festival/concert candy.
Should you break the rules at the movie theater? Of course not! Great, now that we’ve gotten that out of the way: Who hasn’t snuck candy into a movie theater? You’ve gotta get crafty sometimes (jackets with pockets on the inside) because bag checks are (rightfully) common at theaters, but hey—drugstore candy is just cheaper and every bit helps. This also applies to festivals, concerts, and plays, so if you need to BYOC… we won’t judge.
15. And it’s OK to fool your friends into thinking you’re fancier than you are too.
Yeah, we’re not above refilling an old Aesop soap bottle with cheaper Mrs. Meyers so the bathroom seems nicer than it is. See also: upcycling the glass containers from nice candles into bud vases and mini planters for succulents (which you’ll kill, but oh well), and serving your friends from carafes of sangria, which you made with a few bottles of TJ’s “Two-Buck-Chuck” cab sauv, an apple, and a couple of oranges (no one ever needs to see the label).
16. Be your own ATM.
You know the saying “out of sight, out of mind,” right? We’re pretty sure that phrase originated when debit cards became a thing. Try taking out cash on Sunday night or Monday morning and let that be your allowance for the rest week—those Jacksons will feel infinitely more real in your hands than they do in your bank account.
17. Go for free.
Take advantage of the free cultural events in your area. You can get into some interesting things this way and, worst case scenario, it’s not the most amazing time you’ve ever had but at least you didn’t get spendy for it. We’re into free museum days, outdoor concerts, improv shows, cemetery walking tours… whatever’s happening, we’re game to try anything twice. 5 Tips to save money every month from your salary Most of us want to save money so we can build wealth and plan for the future. We have goals we want to reach (like traveling) or things we want to buy (like a dream home). However, this can seem impossible when you’re surviving on low income. According to CNN, 25 million American households are living paycheck to paycheck. When money is tight, saving any amount can be the last priority on your list. You’re just trying to get by. So how do you save more money when you’re making minimum wage? How can you reach your financial goals on a low income? When it comes to finances, it’s important to not only think about the now but also the future. Even if you’re earning a minimum wage, you can still save little by little. Here’s how:
1. Tackle High-Interest Debt First
In order to start saving more, you have to tackle your debt head-on. Specifically high-interest rate from personal loans, or credit cards, because they force you to pay outrageous fees and interest charges. When paying off debt, you need an attainable, yet challenging plan to pay it off. Start by prioritizing your debt so you’re paying off the ones with highest interest first. Then, as you go forward, avoid accumulating any more high interest debt, especially credit cards.
2. Cut Down Your Biggest Expenses
Trying to save money when you have low income can be very difficult. Sometimes it feels impossible to cut down even a dollar or two every month. Aside from the usual money-saving ideas, like cooking meals at home and canceling your cable bill, what more you can do? Instead of trying to cut back your small expenses, focus on the larger ones so you can make more of a significant impact. For most people, housing costs tend to be biggest part of their expenses. If you’re renting, consider downsizing to a smaller home or living with roommates. If you own your home, take at look at whether or not refinancing your mortgage for a lower rate would be beneficial. You can also rent out a room or parking spot for additional income. David’s Note: Make sure to understand the terms of a refinance though. What generally happens is that along with a reduced monthly payment, a refinance also extends the loan term. Be comfortable with the fact that it will take you longer to pay the loan off if this is the option you choose. Also remember to shop around for the best deal, because there are a ton of people willing to help you get a refinance and some will charge less than others for their services. And I know Connie just said to work on the big stuff, but I argue that you need to cut out the small stuff too, especially if the costs are recurring like a cable TV bill. Do you absolutely need to pay for it? There are many ways to reduce the TV subscription costs, and it only takes minimal effort for a sizable benefit.
3. Take Advantage of Free Money
Take advantage of “free money” when you can. As a family with low income, you may qualify for the earned income tax credit (EITC). According to the IRS website, the EITC, can be a large refund on your taxes, helping you keep more of what you earned. Sometimes even as much as a few thousand dollars. You should also look into a 401K at work and see if your company matches up to a certain percentage of your contribution. If they do, you should take advantage of it and start saving as much as possible. The company match is basically free money that will help you save towards retirement.
4. Keep Your Budget Lean
To save more, you have to take control of how much you spend. Choose the categories you want to indulge in, and keep the rest of your budget as lean as possible. You’ll have to make sacrifices but it’s not impossible. Just learn to spend in moderation. For instance; cut back on how often you dine out. You can still enjoy a nice meal at a restaurant, just not multiple times a week.
5. Start a Side Hustle
If you can’t cut costs anymore than you already have, consider diversifying your income by starting a side hustle to earn extra money. Aside from your full-time job, you can get a job on the side to provide another income source. Many side hustles can be done right from your own home in your spare time. Think about what you’re good at doing, what kind of hobbies can earn money, or what you already enjoy that can be turned into a side job. Popular side hustles include freelance writing, data entry, and graphic design. ——— Saving money when you make minimum wage is certainly hard but can be done. It’s important to understand what your priorities are, and create a values-based spending and saving plan. Once you do, you’ll be smarter and savvier with how you spend money and ultimately, be able to save more. What’s another way to save more money while earning minimum wage? What are some tactics you’ve tried in the past when your income was low?
Want more tips? Start a budget.
Budgets, money tracking, and careful thought about your spending are most important when you have very little money. Thinking you’re too poor for a budget is a way of avoiding tough decisions. But making those difficult choices will actually help you feel more in control and happier about your finances. If you’re living on the financial edge, try these budgeting strategies to make sure that you control your money, rather than vice versa: 1. Make friends with your calendar. It doesn’t matter whether you use the kitten-themed wall calendar you got for Christmas, a web-based calendar, or the calendar on your phone—but you must begin to organize your money according to time. Record when you receive your paycheck, when bills are due and when automatic payments are made. This can help you to find the thin spots in your finances during the month. From there, you can often request changes to due dates in order to make certain that you have the money when you need it. For example, if you know that having “extra” cash in your checking account will be too much of a temptation, move your bill due dates to coincide with your paychecks, so that any money leftover after bills are paid isn’t needed for the next round of expenses. 2. Track your spending for a month. Your next step is ridiculously simple, and yet it can be very difficult to do. For an entire month, record every single cent that you spend. Whether you go low-tech with pen and notebook in hand, or high-tech by using a free money-tracking program on the internet or your smartphone, a month of tracking will give you a much better idea of where your money goes. Another positive side effect of tracking your spending is that it gives you a moment to think about your purchases before you make them. You might just walk on by the coffee shop when you realize you don’t really want to write down the cost of $4 coffee on your tracking sheet. 3. Cut judiciously. Once you know why there’s too much month left at the end of your money, you’ll know what to cut out of your monthly expenditures to get back to living within your means. Some cuts will be easy. Restaurant meals and snacks can be cut out in favor of cooking at home. Insurance costs can be made more manageable by raising your deductibles. Services you don’t use—like that gym membership or the extra data plan on your phone—should also be on the chopping block. But don’t forget about cutting costs in basic areas, as well. You can often lower your utility payments by making sure you turn off lights and unplugging power vampires, for example. 4. Start planning for saving now. Having an emergency fund is an essential part of being financially healthy, so start to plot a path to save for it even if you can’t spare the change right now. That way, you can start adding to savings as soon as you don’t run out of paycheck. 5. Increase your income. If you have cut your spending to the bone and are still having trouble making ends meet, then it’s time to consider other sources of income. That could mean asking for overtime at work, starting a side hustle, selling off some of your possessions, or looking for more lucrative work. If you want to live within your means, you need to be mindful of your income and spending. Otherwise, it’s impossible to get off the cycle of living from one paycheck to the next. Source: http://www.hiwamag.com/lifestyle/save-money-when-you-are-broke/
[WP] You won a lottery that gives you $365,000 on the first day of the year, and $1,000 less than that every day until the year ends. Today is the last day. That $1,000 you received won't save you. You wish you never won the lottery in the first place.
You won a lottery that gives you $365,000 on the first day of the year, and $1,000 less than that every day until the year ends. Today is the last day. That $1,000 you received won't save you. You wish you never won the lottery in the first place. And the rest of the year, your money will be eaten up by the bills you owe. But it's not the money you get that matters. It's the principle behind the lottery prize. You've already paid taxes on it, so it's technically a gift from the government to you. The IRS considers it a gift from the government because of your income tax rate. That's why "gift" is a better word than "bonus" when describing the amount you win. It means you didn't actually win anything. The government just gave you money without actually paying you. The question is: How much should you give to charity? The tax code doesn't specify a dollar limit for giving to charity. Some people think that's a waste of money. You can give your tax return to the charity of your choice if you don't like its recommendations. But most people consider it a gift, especially if you choose to give to a charity that isn't part of a religious group. If you want to give to a religious organization, you're probably giving a gift to that institution. You can't give it money. But there are other ways to give to religious groups. You can give to the religious organization's religious charity. Or you can give to your local church. Some people say that the IRS has no business collecting the money you give to your favorite charity. The IRS is supposed to be just that, the tax agency. It's supposed to be looking out for your best interests, not your favorite charity's. The IRS collects money from the people whose money it collects. Some people say that the IRS is supposed to take the money and use it for the benefit of other people, not yourself. Those people could be entitled to a refund if the IRS didn't take the money. If you want to give money to a nonprofit organization, the IRS can't require you to donate it to your favorite charity. You can't give money to an organization simply because the IRS says it's your favorite charity. And if you want to give to a religious organization, you can't give to the religious organization just because the IRS says it's your favorite charity. If you think the IRS should collect money from the people whose money it collects, just remember that the people whose money it collects are the ones who pay taxes. So by giving money to an organization, you're actually contributing to the government. For more on giving to charity, read: How
KABOOOOOOM!!!!!!!!DUE TO POTUS policies Kim Jong Un wants a face-to-face before MAY 2018 and Trump agreed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You Mr. President are the BEST President this country has ever seen!!!!!!!!!! (13640 points, 918 comments)
2817 points: jbtrilogy's comment in OH SHIT! — “To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!”
KABOOOOOOM!!!!!!!!DUE TO POTUS policies Kim Jong Un wants a face-to-face before MAY 2018 and Trump agreed!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! You Mr. President are the BEST President this country has ever seen!!!!!!!!!! (13646 points, 918 comments)
2819 points: jbtrilogy's comment in OH SHIT! — “To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS!”
California and Delaware do not tax state lottery winnings. Arizona and Maryland have separate resident and nonresident withholding rates. In New York, residents of New York City and Yonkers face additional withholdings of 3.876 percent and 1.323 percent, respectively. And of course, withholding rates sometimes differ from the top marginal rate, because states account for lottery winners being Effective for taxable years beginning after December 31, 2017, the withholding rate under Section 3402 (q) applicable to winnings of $5,000 or more from sweepstakes, wagering pools, certain parimutuel pools, jai alai, and lotteries (formerly 25%) is 24%. Lottery winnings are taxed, with the IRS taking taxes up to 37%. Yet the tax withholding rate on lottery winnings is only 24%. Given that big spread, some lottery winners do not plan ahead, and can... All lottery winnings valued at over $600 need to be reported to the IRS through the completion of a W-2G form when the tax filing season arrives. In addition, lottery prizes over $5,000 will have federal taxes withheld when you claim your winnings. This federal tax withholding on lottery winnings is 24%. But what you actually end up owing to the government on your winnings when you file your Depending on the number of your winnings, your federal tax rate could be as high as 37 percent as per the lottery tax calculation. State and local tax rates vary by location. Some states don’t impose an income tax while others withhold over 15 percent. If you want to share your winnings with your family or friends, then they will have to pay Gift Tax on the amount they receive. The same goes if you leave your money to somebody they will be imposed upon Inheritance Tax. Lottery Winning Taxes for Russia. The tax rate in Russia goes as high as 13%. This tax rates applies to people who live most Lottery Winnings And Gift Taxes. If records were kept about such things, Tonda Lynn, a waitress at a pancake house, may have received the largest tip in history when a customer gave her a lottery ticket that turned out to be worth $10 million. As the U.S. Tax Court put it in a heading in its opinion resolving gift tax issues arising from subsequent events, suddenly "She's Got a Ticket to Ride The following rules apply to casual gamblers who aren't in the trade or business of gambling. Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. Lottery winnings are considered ordinary taxable income for both federal and state tax purposes. Winnings are taxed the same as wages or salaries are, and the total amount the winner receives must be reported on their tax return each year. Before the winner receives any of the money, however, the IRS automatically takes 24% of the winnings. Next in line is the federal tax bill. Your lottery winnings are taxed just as if they were an ordinary income bonus. This means your income will be pushed into the highest federal tax rate, which is 37%. There is no way you can work around this—the U.S. government does not give tax breaks to even the luckiest people in the country. With this in mind, the government will immediately and
Lottery Taxes - How Much Tax Is If You Win The Lottery ...
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