so she won 183, took payout of 112 and ended up with after tax of 76. what happened to the other 71million?
Probably used to by tanks and sue wedding cake bakers.
Quick answer: 36 million went to the government. 61 million didn't exist: the 183 million would have been paid out over 30 years, during which time (in theory) the 112 million would be making investment interest, plus the dollar value would be shrinking, so the payouts would be worth less then paid out 10, 20, up to 30 years later. Now, a person with half a brain and reasonable risk aversion should be able to take 76 million and grow it to more than 183 million over 30 years, so it would be better to take the upfront money and run it yourself, either for your own betterment or to grow a charitable foundation.
“so she won 183, took payout of 112 and ended up with after tax of 76. what happened to the other 71million?”
The State took $71 million, the Feds, $36 million, for a total tax burden of $112 million which is about 61%.
The gummint won 36.8 million and didn’t even buy a ticket!
The 183 million is extrapolated over a payout of 20-30 years. They are assuming interest being earned on the actual principle while the payout is occurring over that time. If you took the annuity, the total would have been 183 before taxes.