Federal taxes always take off large sums off the top of lottery winnings, however, New Hampshire has added a new series of taxes to lottery winnings. New Hampshire has decided its large cut of lottery sales isn't enough, and now taxes gambling winnings an additional 10%.
A letter published in the Nashua Telegraph emphasizes the dilemma that the government can cause for themselves by attempting to drain even more from gambling.
In the letter of Leonard Jean, a current Florida resident from New Hampshire, Jean but he still getting hold of his Powerball tickets from the Granite State, as a show of his loyalty to the state. However, now that the New Hampshire is dealing with a 10% tax on winnings greater than $600, he is reconsidering his choice.
That means, any player winning over $600 dollars will also be subjected to a state tax, amounting to 10% of the winnings. While not much, the 10%, on top of the federal tax level of almost half of the winnings of a bunch sum is excessive.
The New Hampshire, though a small state, had faced a hefty revenues from the lottery. Though this came from the sales of the tickets rather than taxes collected, the recent addition to the state's government is likely to be found to be money-making.
Though some players, specifically big winners, may bemoan about the new tax, however, it is worth referring to that the lottery's proceeds fund the state's education system.
While a large numbers of players may disagree with the 10% tax, the truth is that it is here, and it will not be going away.
What do you do if the state you live in is scheduled to implement a new 10% tax on lottery winnings? Will higher taxes have the wrong effect- and reduce its revenue to the state?
Lottery's revenue have seen a fall off in recent months, and while New Hampshire's sales remain strong, this new 10% lottery tax may prove to be a burden rather than a cash crop. It is tounge-in-cheek, however, that the state who's motto "Live free or Die" would inflict such a tax.
A letter published in the Nashua Telegraph emphasizes the dilemma that the government can cause for themselves by attempting to drain even more from gambling.
In the letter of Leonard Jean, a current Florida resident from New Hampshire, Jean but he still getting hold of his Powerball tickets from the Granite State, as a show of his loyalty to the state. However, now that the New Hampshire is dealing with a 10% tax on winnings greater than $600, he is reconsidering his choice.
That means, any player winning over $600 dollars will also be subjected to a state tax, amounting to 10% of the winnings. While not much, the 10%, on top of the federal tax level of almost half of the winnings of a bunch sum is excessive.
The New Hampshire, though a small state, had faced a hefty revenues from the lottery. Though this came from the sales of the tickets rather than taxes collected, the recent addition to the state's government is likely to be found to be money-making.
Though some players, specifically big winners, may bemoan about the new tax, however, it is worth referring to that the lottery's proceeds fund the state's education system.
While a large numbers of players may disagree with the 10% tax, the truth is that it is here, and it will not be going away.
What do you do if the state you live in is scheduled to implement a new 10% tax on lottery winnings? Will higher taxes have the wrong effect- and reduce its revenue to the state?
Lottery's revenue have seen a fall off in recent months, and while New Hampshire's sales remain strong, this new 10% lottery tax may prove to be a burden rather than a cash crop. It is tounge-in-cheek, however, that the state who's motto "Live free or Die" would inflict such a tax.
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