67 year old Cleaning Lady hits the Jackpot...

Discussion in 'Current Events' started by insein, Jul 9, 2004.

  1. insein
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    insein Senior Member

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    http://apnews.myway.com/article/20040710/D83NJVP0I.html

    My question, what do all those taxes go for? Otherwise a great story.
     
  2. freeandfun1
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    freeandfun1 VIP Member

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    when you take the lump sum you get half. so of the $294 million, she decided to take half, or $147 million. If she took the entire amount, it is paid out over 20 years at $14.7 million per year. It is better to take the lump sum and invest it. She then paid 20% (or $29.4 million) tax on the $147 million payout for federal taxes. I am sure whe will also have to pay state taxes as well. Plus, 20% is not enough to cover what she will end up owing just in interest eared. Then, once she gets into the top tax bracket, she will have to pay even more. So see, in the end, it is like that cadence we used to sing in the Army....."they give ya a hundred dollars, and take back 99 - hey!"
     
  3. insein
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    insein Senior Member

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    Sounds about right, lol.
     

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