A Portage County area resident has "money in the bank" after buying a winning lottery ticket in Ravenna.
Thomas Blake, who lives just outside Palmyra in Mahoning County, purchased his ticket at the Circle K at Cotton Corners in Ravenna Township.
He won the top prize of a $1 million annuity in the instant "Money in the Bank" game.
Blake, who could choose between a $500,000 cash option and the annuity, chose the cash.
Lottery spokeswoman Sandra Neal said after mandatory federal and state tax withholding totaling 29 percent, he receives a lump sum of $295,000. He plans to use the money toward education.
A call to Blake was not returned.
Circle K will receive a $10,000 bonus for selling the winning ticket.
A call to Circle K's manager was not immediately returned.
It did not say anything about $50,000 a year for 20 years. That would change things, but if he won a million and ended up with $295,000 the figures still stand. It really would not make a difference how it disappeared. He still only got 29% of the Million.
He never won a flat-out million dollars: he had the option to take $50,000/yr for 20 years or $500,000. Since his payout shows 41% withheld, local taxes may have been paid, too. If you think that's excessive, argue that point; but don't say he only received 29.5% of his prize.
There is something inherently wrong with our tax system when you get a million in income but have only $295,000 after taxes. That is only 29.5 % that he gets to keep. He paid 70.5% tax rate. Then when you consider that he will have to pay the higher rate on all of his income, he will end up paying even a higher % in taxes.
Well, isn't that nice. If you happen to come out ahead in one of the government gambling schemes, they're just going to take 2/3 of it from you.