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Bill Rice, Jr.'s avatar

I once wrote a couple of stories about "Jeopardy!" game-show whiz James Holzhauer. James supposedly "won" a record $2.4 million in 33 episodes. Or that's what the press announcements and the show's publicity said. James didn't win nearly that much money.

The Feds took 40 percent and the State of California, where the show is taped, took 12 percent. James only worked in California six or seven day as five shows were taped in one day and each competition only took 22 minutes. So he probably "worked" in California for about five or six hours total. From that labor, the State of California netted more than $200,000 of James's alleged winnings. And the State of California didn't answer a single question!

So who really "won" all that money?

Fortunately, James lives in Nevada, which doesn't have a state income tax, so he got to keep more money than most winning contestants.

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Bill Rice, Jr.'s avatar

You "win" $10 million in the lottery. You take the instant-payout haircut and the federal and state government take 50 percent of what's left ... and you net $3 million. So: you were robbed of 70 percent of your winnings, but, this was "legal" theft and, since you’re now a millionaire, you’re probably not going to complain.

The convenience store that sells you 10 tickets every week isn't going to complain, because they get a cut of every lottery ticket you buy, and you probably bought some cigarettes and potato chips while you were in the store (and the government gets 10 percent of the sales tax on the chip purchase and 80 percent on the cigs) .... so everyone is a winner!

"Thank you, Carl. See you next time. I'm sure you'll win then. You're over-due."

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