The Mega Millions jackpot winner didn't pay 70% in taxes

A new Mega Millions jackpot winner has been announced, this time taking home $1.28 billion in cash.

However, headlines announcing that the winner will receive only $433.7 million have left some people perplexed.

[{"selector":"#anim-9abc83a4-0cef-456f-bea4-57ea726c8bab","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-0f884c4d-a5c9-46f8-b692-eb9b89e86e55","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Was the winner truly taxed at 70%?

[{"selector":"#anim-0907f4e4-7596-4a41-a4d7-2384b6853fa2 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.499999772451451%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}]

It can be difficult for any organisation to come up with billions of dollars on short notice.

[{"selector":"#anim-c435fff9-b299-4d2a-b503-0f8e069379c9","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-d4f5ff5b-11e0-4a97-90e5-a0b970539d83","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

The Multi-State Lottery Association, which is in charge of the Mega Millions jackpot, is no exception.

[{"selector":"#anim-50e58456-57cb-4936-a841-abc3fcc6c4dc [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.514648210040342%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}]

As a result, lottery winners have two choices: receive a series of payments over time or receive a smaller prize immediately.

[{"selector":"#anim-6c533cb5-ce13-4d42-9f3e-78b6b53137df","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-16566fad-463d-4acb-b91c-311808a25096","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

If winner wants the winning amount annually. Then the value of this annuity payment option was $1.28 billion.

[{"selector":"#anim-b72cd325-d7f1-4ab3-8eae-b1d4f3f9cd32 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.499999772451451%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}]

Winners who choose the lump sum prize receive cash in hand, but their payout is less than the annuity payout.

[{"selector":"#anim-99d3b041-9b67-4bcd-a31a-07d2889dae34 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}]

This phenomenon is explained by the time value of money principle, which states that a dollar received today is worth more than a dollar received tomorrow.

[{"selector":"#anim-78f0feb1-c60b-48b6-ab34-a42377932a77 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.812499744007886%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}]

To Read More Click Below

[{"selector":"#anim-aa5f16d2-b383-4371-a25f-d01466385baa [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(24.999998917959243%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-40bea3b4-01a2-411d-8814-a8dd62e08ff8","keyframes":[{"offset":0,"transform":"translate3d(0, -631.71293%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"translate3d(0, -177.637675916%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"translate3d(0, -60.391756108%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"translate3d(0, -22.678494187000002%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"translate3d(0, -9.854721708%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":0,"duration":1600,"fill":"both"}]