TMI Tuesday

Re: TMI Tuesday

• Sue-n-Kevin member

  

  March 2012

  It bugs me, I do have to say.
  
  My guess is some politician will take a stance and introduce a bill that says lottery winnings are income and it should be allocated over the person's life at some level above the poverty level, eliminating how ever many years it is that she is eligible.
  

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• Meegles4 member

  

  March 2012

  I saw this, and Sue, you're right on...the point of the story was that a state lawmaker had introduced a bill that would make the Lotto Commission give names of anyone who won over $1,000 to the state and they'd have to cross reference and remove folks who were receiving assistance.
  
  To speak to this exact story, I was a bit annoyed with the girl and would probably prefer she not receive food assistance anymore. However, I didn't feel like she was suddenly living some lavish lifestyle with her winnings and then still getting by on food assistance. The house she bought wasn't a mansion, the car wasn't a Mercedes, etc. etc.
  
  I think I agree with the bill the lawmaker introduced (can't remember his name), BUT I do think putting the lower limit of $1,000 on it is a bit too low. If someone wins $1,000 in the lottery, their life really isn't going to change that much and if they need it, they really should still be eligible for assistance. I think it should apply for people who win much, much higher amounts.
  
  Also, I don't think people should be automatically cut off because they win. For example, let's say someone wins $50,000. But, let's say they are $60,000 in credit card or other debt. In my idealistic world, their winnings should go directly to paying off their debt, which wouldn't leave them with anything left over and thus they should still qualify for assistance because it's not as though they're coming out ahead.
  
  Bottom line, I think the issue is a lot more complex than "hey, I won the lotto, I'm rich!" and thinking about it more this morning just makes me realize all the things that are probably wrong with the system and beyond fixing with just one little piece of legislation.

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• Milsey32

  

  March 2012

  It bugs me because I think it should be considered income. However, I also agree with Meegles - she wasn't living a lavish lifestyle (which is smart, IMO) and I also whole-heartedly defend Meegles suggestion that if a person were to win money it should automatically be paying off debt/loans first. 

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• entropicbeauty member

  

  March 2012

  Generally if someone is on government assistance, even with a windfall of cash they may not be able to get their life turned around to a point where they can successfully live off those winnings.

  
  

  I don't know this exact story, but I have to imagine as PPs have pointed out, that a lot of people have a LOT of debt and even substantial winnings may not do all that much to get them out of debt.

  
  

  I would want to have winners analyzed on a case by case basis though - if the winnings were substantial enough then I believe it should be counted as income (anything over $50,000 IMO).

  

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• StephLove12

  

  March 2012

  It bothers me more than it should. Mainly because I feel like the state is being stingy towards me. I have a decent job, but after my rent, $600 dollar student loan bills, and car payment and car insurance every month, I have no extra cash. I only got approved for $16 a month. I wouldn't care if the lady still got her food benefits after she won the lottery if the state looked at student loan payments as a factor in eligibility. If you can't tell, I'm bitter about that lol. I don't have a choice to pay those, and I wish the state would recognize that it takes away half my income. And finished ranting... lol.

  

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• matuofm member

  

  March 2012

  I think that if you have 47 million dollars over the course of your lifetime, you should be paying taxes on that - no matter how you got it. 
  
  But I also agree that if you win $1000, I'm okay with that being yours, free and clear.  I feel like the whole point of small lotto winnings is that they're a windfall that can brighten your life in an unexpected way.  Having to pay half of it in taxes would just suck - especially since your initial investment in the ticket went to state government, didn't it?

  

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• mlynn1223

  

  March 2012

  I think there are a lot of things wrong with how our system is run.  What I like to consider is how did she pay for the ticket in the first place?  If you are so strapped for cash you need government assistance why are you blowing it on lottery tickets?  

  
  

  If you win I feel it should be considered income and thus be taxed.  If I cash in my bonds it is considered income and I paid for those already.  I agree that sometimes people have a lot of debt.  However, with winning a million you could go to a financial advisor who would help you pay off your debt and find a way to stay above water in the future.  

  

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