Yes woman who won $1M lotto SHOULD get food stamps.

[Sweater Cows!]

I differ from most, but I am looking at his long term and here is why I think she should continue to get food stamps.

If after taxes she is left with 700,000 dollars that is not very much money. Once invested the sum will draw anywhere from Zero to maybe in a really ,really good year 12%. So 12% of 700K is 84,000 dollars,but we all know in the next few years she will be lucky to be drawing 4-6%.

So lets meet in the middle and say in the next ten years she is lucky enough to draw 5%. The dividend on 5% is $35,000. So with that 35K  to reinvest so as not to drain the principal. If she did not reinvest any dividends she would have the winnings depleted to zero dollars in 20 years.If she has issues with her houses she may need to tap into the principal even more for repairs and continuing taxes and maintenance.

The woman looks my age, so if that is the case, and the economy stays in the tank and she can't find work, well, she will be back on social services at age 55. So since she had to pay roughly half of the $1M win in taxes she is getting her money back in any services she uses for the next few years anyway. She is not touching our money.

I think the importance of having a nest egg so when she turns 70 and wants to retire she does not have to live like many elderly people is more important right now than having her live off the 500,000 that she has and then the money is just gone and she is back to being on welfare. We all know medicare and social security are not really enough for anyone to live a good life.

I would rather see someone maintain their investments and use some welfare now to get by than to drain the principal and end up broke again in 20 years.

Some people will say who needs two houses? But when it comes down to it the fact of having a second home could also be important for retirement as a person can sell one and have some funds to live.

I now see the legislature is looking to make people claim even a $1000 dollar win in monies. That is insane, 1K is enough to almost pay the taxes on the house for a year or a months rent and groceries and then poof! it's gone.

[Willy]

When

The problem is that Wall street and the Government are controlled by Baby Boomers. However as I stated in another post, the current generations are the ultimate "give me. i deserve" generation. They have had everything handed to them and cannot even find anything worth protesting except their "student loans". The generations prior to the baby boomers were the ones who should be honored. They lived and fought thru 2 World Wars and a depression that makes our current situation look like a Sunday picnic. A lot of the Baby boomers and most of their offspring still support the insane policies of the current fools in Washington and they are responsible for the Obama debacle which, if it continues, will be our last hurrah.

[Willy]

Dale

I amazingly agree with your entire post.

[Willy]

Larry

The financial aspect of the Baby Boomer reign  may be a legacy we will never overcome and will, most likely, shape our future in ways we cannot imagine. It's a sad commentary on what could have been a respected generation. But what you have to understand is that most of that money went into social causes and the military and maybe a few Government officials pockets.

[easymoney]

Dale,

Have you ever stopped to think about the so called baby boomers you like to accuse of ripping the system? The majority of them are like me, at 69 I'm still working to make ends meet. Go to wal-mart or myers and see the old people trying to supplement their SS to servive and make ends meet. Because they still have pride and don't take from the system, I'm elegible for assistance according to Gov. I'm considered 200% below povery level, making me elegable for food stamps and such,

Also, raising a family back then, took your whole check, no 401, only the rich could buy stock.

I figured out how much I put into SS, and I would have to live another 26 years to get back what I paid into it at 1235 a month. It's not an entitlement like some like to say.

PS> we also have to pay tax's on SS

[Willy]

The SS system would, could and should be solvent if not for Congress robbing the fund and leaving it close to bankrupt. Unfortunately this started before baby boomers were in charge but they continued the practice. I'm not speaking against Baby Boomers, I am speaking against those Boomers in Washington. The Baby Boomer generation has been a positive force in the areas of social justice, philanthropy, research and development, science, technology and host of other wonderful contributions to the World. It's just that the Boomer politicians have proven to be corrupt, spineless, greedy political mercenaries with no financial common sense. 

[easymoney]

those that you use as an example are not your average baby boomer. The groupp who are resposable for out of control spending,l mostly gov. programs, started with the hippie generation, of which the majority of us, were not. They mostly went into brain washing ie; education or politics.

Start with LBJ's great society and on thru carter. LBJ is the one who made SS part of the general fund, if left alone as it was meant, there would be plenty of money in the fund. Also, take O's health care bill for instance, where did the first half trillion for it come from?  Medicare.

And yes, I am self employed and still paying tax's, from employment and SS.

Bill clinton ,due to a lack of funds in theUS gov. chose to tax SS, the tieing vote was Al gore. How well I remember that.

My tax's paid for those who drew SS before me, its always been that way

 

[Dave]

There has been an update to this story and the young lady involved is probably going to find herself in a world of financial hurt. General consensus is that they charged her with the most they can, figuring they will probably plead it down, she'll pay a hefty fine including repaying what she used on her bridge card and insurance plus probably be barred from using the welfare system in the state.

Michigan lottery winner charged with welfare fraud

LANSING, Mich. – A 25-year-old woman from Lincoln Park, Mich., who continued to collect food stamps after winning the state lottery's $1 million Make Me Rich! game show has been charged with two felonies for welfare fraud, Attorney General Bill Schuette said Tuesday.

Amanda Clayton, whose use of a food stamp bridge card was uncovered earlier this year by WDIV-TV, was to be arraigned Tuesday on charges of failing to inform welfare officials of her winnings or the fact that she was employed for five months in 2011, Schuette said in a joint announcement with Director Maura Corrigan of the Michigan Department of Human Services.

They said Clayton illegally collected about $5,475 in food and medical assistance from August 2011 through March 2012.

Each of the two charges of welfare fraud, failure to inform is punishable by up to four years in prison.

"It's simply common sense that million-dollar lottery winners forfeit their right to public assistance," Schuette said in a statement.

Clayton won the televised game Sept 12, 2011, and reportedly took home more than $500,000. She told WDIV-TV that she thought she was justified in continuing to collect the state payments after her windfall because she was now unemployed.

"I feel that it's OK because, I mean, I have no income and I have bills to pay,' she said. 'I have two houses.' "

http://www.usatoday.com/news/nation/story/2012-04-17/lottery-winner...

[XLFD]

Hope she's set aside some of her money for legal fees. 

Being that a significant portion of lottery players receive public assistance, this 'negative publicity' may make lottery ticket sales decrease, leading to less state revenue vastly exceeding the amount she receives in assistance.  The State of MI just can't win. 

That's just an observation; let's keep continued tabs on this story.  

[AQUAMAN]

I don't see why these type of threads always seem to get convoluted, speculative, and off-track to baby boomers, her future financial status, and all the rest of the drum rolls for pity. Bottom line for me, as it should be for all, is "the condition of her current financial status". That of having more money than she can spend for the month, maybe years to come too, if she uses it wisely. When not in need, you simply don't qualify, nor should you apply for any benefits. She is real young, and like some said, apply her best monetary gains for her future, that of bettering her education and qualifications to earn for herself, not bleed off the rest of us in social service monies. Her situation is a no-brainer, and she should have dropped herself as a recipient right away after winning the lotto. Now she deserves to pay back the ill-gotten gains, and go to jail, do not pass go either.

[snide]

The only reason I kind of see her side is that is WAS given to her...... Meaning the STATE handed her the half million plus(after taxes), so why doesn't the STATE keep track of it......? What should happen is when she went for the food stamps , it shows up the the STATE just gave her a half mil -- SO IT SHOULD REJECT THE FOOD STAMP CLAIM... Is record keeping really that hard..... Just like the common complaint in Chicago that they have dead people on their voter rolls....WHY..? The coroner fills out a certificate of death and files it with the county (the people responsible for the voter rolls) so is it too much to ask them to strike them from the list....?  

 I also feel that lottery winners SHOULD NOT PAY TAX ON THE WINNINGS........I understand that it IS income , but the government that is taxing you ALSO RUNS THE GAME. Picture it this way.... Say I'm hosting a poker game at my house and it gets down to one big hand at the end and everyone folds except you and I .... The pot is say one hundred dollars and I have a straight , but YOU have a full house....You win , but I reach into the pot and take 35 bucks back.. Would you complain.... ? In the old west, that's how people got shot and sullied the name of poker and gambling----  They are taxing their own game and I for one think it stinks..... But I certainly agree with the crowd that thinks this girl who was caught for fraud is none too bright....Like many lottery winners she will be broke ....

[Dave]

I think what might actually hurt her more in her case was that she apparently had a job for around 5 months and neglected to inform the State of that as well... the lottery win was just a added bonus so to speak.

As far as taxing lottery winnings/gambling... I sort of see your point but I suppose most people just look at it from the standpoint that they know if they win a jackpot that they are going to be giving a certain portion of that win to pay taxes. When you go to a casino, you can win up to a certain amount before you have to pay taxes on it... I forget how much that is... couple thousand $ maybe?

[XLFD]

I think you're right on the money, Dave.  The 5 months of work is what's going to sink her in court.  The State will probably dismiss the Lottery winnings aspect, but look for the law to change.  State lottery officials really should have been reporting the big winners automatically to other State agencies dealing with income-based assistance all along, as too many of the poor winners do not understand corresponding tax and income issues.