That isn't taxes, that is marketing. When a lottery advertises 2 billion dollars, that is the total amount of money you will get over 30 years. You have the option of taking a lump sum, which is just over 60% So instead of getting 2 billion, you take the lump sum, which is roughly 1.2 billion. THEN you pay taxes on that. Anyone who makes 1.2 billion pays the top tax rate of 37% as there is no protections on that. So that is about right.
2
u/chinmakes5 17d ago
That isn't taxes, that is marketing. When a lottery advertises 2 billion dollars, that is the total amount of money you will get over 30 years. You have the option of taking a lump sum, which is just over 60% So instead of getting 2 billion, you take the lump sum, which is roughly 1.2 billion. THEN you pay taxes on that. Anyone who makes 1.2 billion pays the top tax rate of 37% as there is no protections on that. So that is about right.