Taxes on Michigan’s Record $1.1 Billion Lottery Ticket Will Fund State Government For Seven Hours
The winner of a $1.1 billion multistate lottery bought the ticket at a Kroger in Novi, Michigan. This would be the highest lottery prize won in Michigan and the third-largest lotto jackpot in U.S. history. If the winner takes the money in a lump sum payment rather than installments, the prize is worth $739 million before taxes.
It's not all good news for the unidentified individual. The income is counted when the ticket is purchased and Michigan's state government will take 4.25% off the top, or $31.4 million. The state budget — not including federal, private or local government funding — is $35.4 billion.
In other words, Michigan’s record lotto will fund just seven hours and 45 minutes of state government operations.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.