And when the State uses projected lottery income to set a budget and the lottery fails to reach their wild dreams. There is a budget short fall so of course taxes must be raised.And a good racket for the state, who comes out way ahead of any winner. Still, wish I was speaking from experience LOL.
Let's say you win the PowerBall at $300 million. Yay! State already did great, collecting $$$ in ticket sales in excess of that. Already made money. Then they offer the following: take your payout over 20 years (which allows them to pay up slowly, from interest earned on holding the bulk and current sales of more tickets) OR take 50% up front and settle for $150 million. State comes out WAY ahead either way. Winner gets screwed either way he goes.
But it's not over: federal taxes on large lottery winnings: up to 37%. State taxes here in Oregon: 8%. $150 million minus 45% in taxes leaves you with what... $82.5 million? This is what you collect. The feds and state get the rest. Win $300 million, expect to get $82.5 million. They'd lock us up for running a game like that.