Three hedge fund managers won $254 million Powerball jackpot. Gregg Skidmore, Brandon Lacoff and Tim Davidson revealed their identity recently. They are asset managers at a small shop called Bell Asset Management. Most of the winnings will be taxed and the three hedge fund managers will only receive $104 million.
This is just not fair. Hedge fund managers shouldn’t pay more than the %15 rate. They did in-depth research and risked their capital to earn this money. They bet $1 and that investment returned 10,400,000,000% in just a few days. Increasing taxes on millionaires will stop investments and increase unemployment. If we want to stimulate economic activity in this country we should reduce taxes. Taxing the lottery winners isn’t the answer to our debt crisis either. If we increase taxes on lottery winners they might want to move to another location where taxes are lower. Most entrepreneurs think this way too. Like most lottery winners, entrepreneurs know in advance that their bets will pay off and they will be rich. So, if we increase tax rates for the millionaires by a few percentage points this will curb their enthusiasm to make risky bets and entice them to move.