The Biggest Powerball Winner and 97 Other Sources of His Income

The hype over the National Powerball Lottery is unescapable. Everyone is dreaming of being the fortunate winner that overcame statistical odds to win the National Lottery.

Regardless of who wins the Powerball, there will be an even bigger winner than the Powerball winner. This is guaranteed.

If you thought that Uncle Sam would be the biggest Powerball lottery winner, you guessed correctly.

Marketwatch breaks it down below:

“But let’s not focus on the “winner” here because the real winner of the lottery system is not the person who buys the winning ticket. The real winner is the government, which taxes the winner. The government automatically withholds 25%, but the winner will be bumped into the highest marginal tax bracket in the case of the lump sum. In addition, the player will very likely pay a state tax (usually 4% to 9%) and perhaps even local taxes. While the Powerball will be marketed as a $900 million prize, the actual payout to a winner in, say, Washington D.C., will be only $289.6 million — a full 68% less than advertised.”

25% of the revenue raised through selling lottery tickets goes to fund state programs, 15% to the finance the marketing of the lottery. That is correct, 15% of the money raised through ticket sales is used to market and advertise to get more people to buy lottery tickets. Is it any wonder that the poor in the United States spend 9% of their income on lottery tickets?

There are also 97 taxes in the US tax code that are sources of income for the government in addition to the National Lottery:

  1. Air Transportation Taxes
  2. Biodiesel Fuel Taxes
  3. Building Permit Taxes
  4. Business Registration Fees
  5. Capital Gains Taxes
  6. Cigarette Taxes
  7. Court Fines
  8. Disposal Fees
  9. Dog License Taxes
  10. Drivers License Fees
  11. Employer Health Insurance Mandate Tax
  12. Employer Medicare Taxes
  13. Employer Social Security Taxes
  14. Environmental Fees
  15. Estate Taxes
  16. Excise Taxes on Comprehensive Health Insurance Plans
  17. Federal Corporate Taxes
  18. Federal Income Taxes
  19. Federal Unemployment Taxes
  20. Fishing License Taxes
  21. Flush Taxes
  22. Food and Beverage License Fees
  23. Franchise Business Taxes
  24. Garbage Taxes
  25. Gasoline Taxes
  26. Gift Taxes
  27. Gun Ownership Permits
  28. Hazardous Material Disposal Fees
  29. Highway Access Fees
  30. Hotel Taxes (these are becoming quite large in some areas)
  31. Hunting License Taxes
  32. Import Taxes
  33. Individual Health Insurance Mandate Taxes
  34. Inheritance Taxes
  35. Insect Control Hazardous Materials Licenses
  36. Inspection Fees
  37. Insurance Premium Taxes
  38. Interstate User Diesel Fuel Taxes
  39. Inventory Taxes
  40. IRA Early Withdrawal Taxes
  41. IRS Interest Charges
  42. IRS Penalties
  43. Library Taxes
  44. License Plate Fees
  45. Liquor Taxes
  46. Local Corporate Taxes
  47. Local Income Taxes
  48. Local School Taxes
  49. Local Unemployment Taxes
  50. Luxury Taxes
  51. Marriage License Taxes
  52. Medicare Taxes
  53. Medicare Tax Surcharge On High Earning Americans Under Obamacare
  54. Obamacare Individual Mandate Excise Tax
  55. Obamacare Surtax On Investment Income
  56. Parking Meters
  57. Passport Fees
  58. Professional Licenses and Fees (another form of taxation)
  59. Property Taxes
  60. Real Estate Taxes
  61. Recreational Vehicle Taxes
  62. Registration Fees For New Businesses
  63. Toll Booth Taxes
  64. Sales Taxes
  65. Self-Employment Taxes
  66. Sewer and Water Taxes
  67. School Taxes
  68. Septic Permit Taxes
  69. Service Charge Taxes
  70. Social Security Taxes
  71. Special Assessments for Road Repairs or Construction
  72. Sports Stadium Taxes
  73. State Corporate Taxes
  74. State Income Taxes
  75. State Park Entrance Fees
  76. State Unemployment Taxes (SUTA)
  77. Tanning Taxes
  78. Telephone 911 Service Taxes
  79. Telephone Federal Excise Taxes
  80. Telephone Federal Universal Service Fee Taxes
  81. Telephone Minimum Usage Surcharge Taxes
  82. Telephone State and Local Taxes
  83. Telephone Universal Access Taxes
  84. The Alternative Minimum Tax
  85. Tire Recycling Fees
  86. Tire Taxes
  87. Tolls
  88. Traffic Fines
  89. Use Taxes
  90. Utility Taxes
  91. Vehicle Registration Taxes
  92. Waste Management Taxes
  93. Water Rights Fees
  94. Watercraft Registration and Licensing Fees
  95. Well Permit Fees
  96. Workers Compensation Taxes
  97. Zoning Permit Fees

Taxes are one of the biggest wealth destroyers out there. In order to have any opportunity or realistic chance at building lasting wealth, we have to have economic efficient strategies when it comes tax planning.

We do not advocate not paying taxes. Please pay the legal amount you owe in taxes every year. There is, however, no legal obligation to leave Uncle Sam a tip.

Everyone can take proactive steps in their wealth strategies to limit and reduce their taxes legally, as well as grow their wealth.

Yours in purpose and prosperity,

M.C Laubscher