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Letters To The Editor

Lottery Winnings Are Deceiving Posted 2009-11-05


I do not want to rain on anyone’s corn flakes, but the article about the $200 million lottery winner was a bit misleading (“Town Resident Hits Mega Jackpot,” Oct. 19).

According to rules disclosed by the lottery commission in fine print somewhere, the winner can opt for a 26-year payout with annual payments that add up to $200 million, or can take a lump sum payment of about $116 million.

Not knowing the financial situation of the winner, I assume this windfall will put them into the highest tax bracket for the year. That means federal and state income taxes of about 40 percent, leaving about $70 million. Now $70 million is no small chunk of change, so congratulations and high fives all around.

But $70 million is not $200 million. It is less. A lot less. A whole lot less. About $130 million less. So, the winner is not $200 million richer as stated in the article. No big deal. Just the facts.

 

Robert M Petrick
Keezletown
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