The state advertises $5 million and pays $3 million. The state would not let an individual or business do this.
Not a bad scam: Advertise $5 million.
Offer to pay only $3 million lump sum.
Then tax the $3 million immediately.
Then tax all of the interest every year thereafter until he is dead!
And that is just the state taxes! Guy is already receiving less than half the advertised amount.
“The state advertises $5 million and pays $3 million. The state would not let an individual or business do this.”
They do so all the time.
The “America’s Got Talent” TV show offers a “One Million Dollar” prize when in fact it is an annuity that will pay out $1mil over a period of 40 years...or $25,000 per year. Right now that can cost them about $600,000
Lots of outfits do this and it’s considered legal because it’s the total value of the prize being advertised.
I also think its misleading and dishonest.