06-20-2021, 12:57 AM
Acer wrote:
[quote=Bill in NC]
The biggest advantage is they have enough assets that they can simply borrow against those & so never pay income tax.
Were you a lottery winner left with say a measly $100 million after taxes you could do the same.
If lottery winners could get their payouts in mutual fund shares, or even government bonds, they could avoid the initial payout taxes, and only pay capital gains or do the billionaire borrower trick. Then you'd truly be like the rich. But we don't do that for lottery winners. Another way it's expensive to be poor.
This would partly defeat the purpose of lotteries which is to raise money through the voluntary payment of a tax by the easily manipulated.