62% taxes? WTF?
You can take a lotto winning in one of two ways in most states. Monthly paymenst, in which the gov takes about 30 percent of a lump sum, in which the total you get is less than the actual sum that was won, then you get taxes deducted from that. In other words the total of 232 was BS because he elected to take a lump sum. Still, 88 mil is not a bad payday.
If I interperted the other posters correctly, it’s more like 24% tax. He only gets half the total if taken as a lump sum rather than an anuity. In other words, he can have $116.05M (pretax) today or 11.605M annually for twenty years. (11.605 x 20 = 132.1). After tax, 116.05M is 87.5M with 24% taxes. I’d jump on it rather than getting paid in 0bama dollars in 2029, with God-knows-what tax rate.
Not quite. That 62% haircut is only about half taxes. The other about-half is the discounted present value of the 20-year (or 30-year in some lotteries) payout.
Folks, he took the lump sum payment versus the 30 year payout. So that cuts the 232mm to 116mm, then it is taxed. Lop off 35% give or take for taxes, and you end up with 88mm