$340 Million Powerball

"Jay Honeck" writes:

From my perspective, the lottery is just a "stupid tax" that I am
not required to pay. However, many others do...

That's my perspective, too.

Yet, today, for some reason, Mary and I blew a $5 bill on FIVE (count 'em --
FIVE!) Powerball tickets!

That's five more than we've ever bought before! (We actually had to ask
the clerk how to play the lottery. The people in line were incredulous...)

I feel so, so, I don't know....*stupid*...

:-)

I've called it "paying my stupidity tax" quite often myself.

Let me offer for your possible use my rationalizaton: While, in
strictly *financial* terms it's a bad bet, that's not what actually
matters. In some arbitrary measure of personal "utility", an
occasional dollar spent on a lottery ticket is a complete triviality,
it doesn't constrain any other portion of my life at all. However,
winning 340 million dollars would completely transform some segments
of my life (in ways I think would be for the better), a great increase
in utility. Hence buying a lotter ticket is risking "nothing" to
potentially (very low probability) gain a great deal -- clearly a
rational decision.

Hope that helps!
--
David Dyer-Bennet, , http://www.dd-b.net/dd-b/
RKBA: http://noguns-nomoney.com/ http://www.dd-b.net/carry/
Pics: http://dd-b.lighthunters.net/ http://www.dd-b.net/dd-b/SnapshotAlbum/
Dragaera/Steven Brust: http://dragaera.info/

I feel so, so, I don't know....*stupid*...

Hence buying a lotter ticket is risking "nothing" to
potentially (very low probability) gain a great deal -- clearly a
rational decision.

Hope that helps!

I like the way you think, David. It probably hurts your head, but I
like it, nonetheless...

;-)
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

"David Dyer-Bennet" wrote in message
...
"Jay Honeck" writes:

From my perspective, the lottery is just a "stupid tax" that I am
not required to pay. However, many others do...

That's my perspective, too.

Yet, today, for some reason, Mary and I blew a $5 bill on FIVE (count
'em --
FIVE!) Powerball tickets!

That's five more than we've ever bought before! (We actually had to ask
the clerk how to play the lottery. The people in line were
incredulous...)

I feel so, so, I don't know....*stupid*...

:-)

I've called it "paying my stupidity tax" quite often myself.

Let me offer for your possible use my rationalizaton: While, in
strictly *financial* terms it's a bad bet, that's not what actually
matters. In some arbitrary measure of personal "utility", an
occasional dollar spent on a lottery ticket is a complete triviality,
it doesn't constrain any other portion of my life at all. However,
winning 340 million dollars would completely transform some segments
of my life (in ways I think would be for the better), a great increase
in utility. Hence buying a lotter ticket is risking "nothing" to
potentially (very low probability) gain a great deal -- clearly a
rational decision.

Except that you wont win $340m by the time the deductions are made.

David Dyer-Bennet wrote:

"Jay Honeck" writes:

From my perspective, the lottery is just a "stupid tax" that I am
not required to pay. However, many others do...

That's my perspective, too.

Yet, today, for some reason, Mary and I blew a $5 bill on FIVE (count 'em
-- FIVE!) Powerball tickets!

That's five more than we've ever bought before! (We actually had to ask
the clerk how to play the lottery. The people in line were
incredulous...)

I feel so, so, I don't know....*stupid*...

:-)

I've called it "paying my stupidity tax" quite often myself.


Here in Massachusetts, only a fraction of the lottery ticket proceeds goes
to the winning pot. More than 50% (I believe) goes to the education
department. Might be wrong on the percentage - I'll have to check.

So buying a lottery ticket helps the State Education department. And,
eventually, SOMEONE wins the pot.

Gregg

Replicas of 15th-19th century nautical navigational instruments,
Restoration of my 1919 Herreshoff S-Boat sailboat, and
Steambending FAQ with photos:
http://home.comcast.net/~saville/index.html

"gregg" wrote

Here in Massachusetts, only a fraction of the lottery ticket proceeds goes
to the winning pot. More than 50% (I believe) goes to the education
department. Might be wrong on the percentage - I'll have to check.

So buying a lottery ticket helps the State Education department. And,
eventually, SOMEONE wins the pot.

I would have to ask, what was the education budget from the general funds,
and what is the budget after the lotto came to being? My guess is that the
general fund expenditures that go to education now are less than what they
were before.

Another telling stat, is what was the was the per pupil expenditure before,
and what it is at present? If the lotto is doing what it is supposed to do,
the per pupil expenditure should be greater now, than before.
--
Jim in NC

Chris wrote:


"David Dyer-Bennet" wrote in message
potentially (very low probability) gain a great deal -- clearly a
rational decision.

Except that you wont win $340m by the time the deductions are made.

Yes Chris but in my state if the lottery hit $340 million your take if done
on installments would be about 8.8 million after taxes and yes the
government is getting a huge part of it especially since basically they're
paying you the interest off of it. But hey I think I can find something
constructive (and yes blow some)to do with 8.8 million.
Our lottery works out to you get about $26K per million jackpot and is
currently at $108 million (at least before last nights drawing).
John

UltraJohn wrote
Yes Chris but in my state if the lottery hit $340 million your take if
done on installments would be about 8.8 million after taxes and yes
the government is getting a huge part of it especially since basically
they're paying you the interest off of it. But hey I think I can find
something constructive (and yes blow some)to do with 8.8 million.
Our lottery works out to you get about $26K per million jackpot and is
currently at $108 million (at least before last nights drawing).
John

I don't know where your figures came from, but had I won the $340 million,
taking the lump sum would have reduced it to about $190 million and then
paying federal tax on the lump sum would have cut it to around $115
million. A rough calculation for the lump sum payout is to take home about
one third of the published ammount. Taking the 30 years worth of
installments, would net one about $6 million per year.

Bob Moore...In sunny, state-tax-free Florida.

UltraJohn wrote:

Yes Chris but in my state if the lottery hit $340 million your take if done
on installments would be about 8.8 million after taxes and yes the
government is getting a huge part of it especially since basically they're
paying you the interest off of it. But hey I think I can find something
constructive (and yes blow some)to do with 8.8 million.
Our lottery works out to you get about $26K per million jackpot and is
currently at $108 million (at least before last nights drawing).

Let's hope that if you win, your life will turn out better than the many
who won in the past. Apparently, these large lottery payouts have ruined
many lives.


--
Peter
























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Bob Moore wrote:

UltraJohn wrote
Yes Chris but in my state if the lottery hit $340 million your take if
done on installments would be about 8.8 million after taxes and yes
the government is getting a huge part of it especially since basically
they're paying you the interest off of it. But hey I think I can find
something constructive (and yes blow some)to do with 8.8 million.
Our lottery works out to you get about $26K per million jackpot and is
currently at $108 million (at least before last nights drawing).
John

I don't know where your figures came from, but had I won the $340 million,
taking the lump sum would have reduced it to about $190 million and then
paying federal tax on the lump sum would have cut it to around $115
million. A rough calculation for the lump sum payout is to take home about
one third of the published ammount. Taking the 30 years worth of
installments, would net one about $6 million per year.

Bob Moore...In sunny, state-tax-free Florida.


Possibly differences in state taxes. This was just a rough estimate that
"they" passed around for rough planning purposes for when 'I' win the
lottery. ;-)
john

"Chris" writes:

"David Dyer-Bennet" wrote in message
...
"Jay Honeck" writes:

From my perspective, the lottery is just a "stupid tax" that I am
not required to pay. However, many others do...

That's my perspective, too.

Yet, today, for some reason, Mary and I blew a $5 bill on FIVE (count
'em --
FIVE!) Powerball tickets!

That's five more than we've ever bought before! (We actually had to ask
the clerk how to play the lottery. The people in line were
incredulous...)

I feel so, so, I don't know....*stupid*...

:-)

I've called it "paying my stupidity tax" quite often myself.

Let me offer for your possible use my rationalizaton: While, in
strictly *financial* terms it's a bad bet, that's not what actually
matters. In some arbitrary measure of personal "utility", an
occasional dollar spent on a lottery ticket is a complete triviality,
it doesn't constrain any other portion of my life at all. However,
winning 340 million dollars would completely transform some segments
of my life (in ways I think would be for the better), a great increase
in utility. Hence buying a lotter ticket is risking "nothing" to
potentially (very low probability) gain a great deal -- clearly a
rational decision.

Except that you wont win $340m by the time the deductions are made.

So what? The argument doesn't depend on the exact amount. If I
netted *50 million* after taxes and all it'd *still* completely
transform some segments of my life. Heck, if I netted *10* million
after taxes it would.
--
David Dyer-Bennet, , http://www.dd-b.net/dd-b/
RKBA: http://noguns-nomoney.com/ http://www.dd-b.net/carry/
Pics: http://dd-b.lighthunters.net/ http://www.dd-b.net/dd-b/SnapshotAlbum/
Dragaera/Steven Brust: http://dragaera.info/