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Illinois Commits "Fraud On Taxpayers", Lowers Maximum Lottery Payout To Just $600
Susan Rick’s boyfriend won $250,000 from the Illinois Lottery in July.
As the Chicago Tribune reported in August, Rick thought the winnings would allow her to “stop working seven days a week, maybe fix up the house and take a trip to Minnesota to visit her daughter.”
No such luck.
Instead of real money, Rick’s boyfriend - one Danny Chasteen - got an IOU from the state.
The problem: the state’s inability to pass a budget even after hiring (and subsequently firing) budget “guru” and Laffer disciple Donna Arduin for $30,000 a month meant that any Illinoisan who won more than $25,000 couldn’t immediately be paid.
More specifically, without a budget the comptroller's office doesn’t have the legal authority to make the payments.
Fast forward to Wednesday and the state comptroller’s office made national news when Comptroller Leslie Geissler Munger said Illinois would skip a $560 million November pension payment. By way of recap (via Bloomberg):
The spending standoff between Republican Governor Bruce Rauner and Democratic legislative leaders has extended into its fourth month with no signs of ending. Munger said her office will postpone a $560 million retirement-fund payment next month, and may make the December contribution late.
“This decision is choosing the least of a number of bad options,” Munger told reporters in Chicago on Wednesday. “For all intents and purposes, we are out of money now.”
Munger said the pension systems will be paid in full by the end of the fiscal year in June. The state still is making bond payments, she said.
“We prioritize the bond payments above everything else,” Munger told reporters.
We have of course been covering the Illinois budget story closely over the past six or so months and in response to Wednesday’s pension bombshell, we said the following:
One wonders what these means for Chicago's bankrupt school system, which, as we reported early last month, was depending upon nearly a half billion in funding from Springfield to plug a gaping budget hole. Further, this would seem to suggest that anyone who wins more than a few thousand in the Illinois lottery can go ahead and figure on getting a pieces of paper with Bruce Rauner's picture rather than Ben Franklin's for the foreseeable future.
As it turns out, our assessment was too optimistic.
Whereas we suggested the limit for payouts would be a “few thousand”, it was cut yesterday to just $600.
Here’s USA Today:
The cash-strapped state of Illinois announced Wednesday they’ll be handing out IOUs for the time-being to any state lottery winner who wins more than $600.
“Payment delays will occur because there currently is no legal authority for the Illinois Comptroller or the Illinois
Lottery to issue checks,” the Illinois Lottery said in a statement. “Please note that the funding to pay winners exists, but the legal authority to issue checks does not.”
The lottery said the payments will be made once a state budget is passed.
The lottery has been delaying payments to big winners since the current fiscal year started on July 1. Initially, only winners who were set to get $25,000 or more were receiving IOUs.
On Wednesday, the Illinois Lottery lowered the threshold to $600.
Needless to say, some folks are upset, as winners are now incredulous at the idea that the state is essentially just selling bogus raffle tickets:
“How the heck can they do this, and they're still selling tickets?" said Homer Glen resident Rhonda Rasche, 48, according to the Chicago Tribune. "If I was the one selling raffle tickets and I didn't pay, I would be sued or in jail or both."
Yes, Rhonda, you probably would, but you’re not the one selling the tickets, the state is and while you can sue the state (and some people apparently are), you can’t really put it in jail. Furthermore, you can certainly count on people still playing the lottery even as they’re told they won’t be paid if they win, which means free (not to mention badly needed) revenue for Springfield.
We’ll close with the same quote we left you with when we first told Susan Rick’s story in August. This is from State Rep. Jack Franks:
"Our government is committing a fraud on the taxpayers, because we're holding ourselves out as selling a good, and we're not — we're not selling anything. The lottery is a contract: I pay my money, and if I win, you're obligated to pay me and you have to pay me timely. It doesn't say if you have money or when you have money.
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Oh, the Chinese understand alright! They've been unloading their US T notes and continue to do so.
Ya know, wiping your ass with T-Notes and then flushing them down the toilet is not the way to preserve wealth.
Obviously the best and the brightest are NOT to be found anywhere in the Illinois state government. Prison inmates could probably do a MUCH better job of running the state and they wouldn't need to be reelected every two years - jest' say'nn....
The Lottery is part of the Rothschild-Ponzi-Game! Guess who will win this game............
@ Klemens
It is very easy to win.
Don't play.
States are going to split into 2 groups: those with increasingly crippling taxes who must also effect service cuts; and those with increasing budget surpluses from the incremental tax revenue made from the tax refugees. IL, NY, CA are the former. TX, SC, AZ are the latter. Choose wisely.
Don't bet on it. The disease of something for nothing is viral and recognizes no borders, only the fertile field of infection.
Texas has a growing population of eaters and while we have no income taxes, property taxes are murder. When it comes down to it, it's still about overhead.
The White Housenigger and his band of merry kleptocrats have been diligently targeting TX as a placement depot for future 'P' voters. So they've been sending in waves of wetbacks and sandniggers. When one flea spots a good host, he calls for millions more, and breeds . . . a LOT.
Texas has a growing population of eaters and while we have no income taxes, property taxes are murder.
It's not just the property taxes in Texas that are a problem, it's basically every government fee charged in that state is probably triple or quadruple what the same fee is in states that do have income taxes. The bottom line is Texas and other states with no income tax get their money - they just do it in a more sneaky way is all.
It is amazing. From the time the lottery tickets are sold to the winner is named, the money has already been transferred from the lottery, spent and is gone.
It is going quickly now. Watch out America.
Watch out for what?
Oh yeah, that giant dildo aiming squarely for America's collective anus.
Land of Lincoln? Fuck Illinois the land of Obama free shit queers. If you mother fucking idiots expect a bail out from H Clinton you had beeter shove her treason up your ass to hide it.
You do know that Hillary is from Illinois also don't you? I live in Illinois. I sure do not vote for those blood sucking Democrats. I am ready to move. Our public pension fund is funded at only 22%. And they have it set that it is unconstitutional to cut public pension benefits. So where is the money going come from? Taxpayers. So retired people who do not have a pension or have a pension that does not have COL increases will have to lower their lifesyle so the public pensioners do not have to. Fucking Democrats.
This money is supposed to be in seperate funds where it can't taken from.
My thought is: If you can't pay the winners, you should stop selling the tickets.
EcoJoker:
... just like them accounts with MF Global ...
State Lottery = Tax on stupid => goes to general revenue like other taxes.
I tink you are incorrect. All the money from the lottery goes into the general fund.
ALL GOV't workers should be paid in paper IOU's for ever. That's what their work is worth!!
They ARE paid in IOU's. They're called "dollar bills".
I see they have formed their plan for Social Security....if you don't work on K or Wall Street...you will get an IOU...until you are dead...
She should write and complain to Obama, he's from Chicago isn't he?
The Sheeple that buy Illinois Lottery tickets are the same dumbass clowns that keep voting for the same corrupt, graft-ridden, influence peddling poiticians that hire $30,000 per month consultants to fix a problem a third grader could solve in 5 minutes. Hey Sheeple of Illinois: "They won't stop stealing from you if you keep voting for them!" WTF.
www.traderzoo.mobi
This confirms 100% that Lottery is a Tax on Stupidity, and people still play? WTF
You can win! .........if you don't play :')
Never gamble with somebody who can change the rules to suite himself. You'd think that would be common sense.
America will never be great again until Americans begin to embrace the intent of the 2nd Amendment and just start shooting tyrants.
"just start shooting tyrants."
That's why the tyrants take the guns away. Any excuse they can. They'll justify it.
"Mathematically speaking, the odds of winning the lotto are about the same whether you play or don't play"
And so there goes your proof.
LOL! Now fuck you, pay me!
I still remember the video of a guy standing in line waiting for his welfare check. He said "I'm waiting for my check from Obama". There you have it. All the money comes from Obama. For the unfortunate lucky lottery winners: I guess Barry is a little short this month.
If w owed them, jail time.
Lottery is for sure a general tax on the poor.
But it's still worth it in Europe when the jackpot goes to 50million+ Euros, sometimes more than 100million.
Yes, you probably won't win it but somebody always does and it's 100% tax-free and paid out straight away in full.
For now...
If the retards down at the "likra" sto' would stop putting money in the machine there wouldn't be a problem.
The lady in the picture is white, dumbass.
How do you know her boyfriend is white?
over weight like most americans
Yes, the ECB has a printer too...
Illinois does not.
normally I'm not one to engage in semantic arguments but this is a clear exception:
in the entire history of goverment sanctioned lotteries exactly how many people have ever been fined, garnished, leined, had their homes auctioned/other assets seized, prosecuted and/or imprisoned for NOT buying tickets? here's a hint: it's the same # who have died from thc overdose...
player demographics may skew poor (don't dispute that - facts are facts) but lottery is most assuredly NOT a tax!
It's just one of those things that cucservatives say.
Isn't there a word for an entity that cannot pay it's debts? Hmmm.... what is that word. Oh yea, Bankruptcy.
Puerto Rico is bankrupt and now Illinois. The first dominoes to fall?
In my book The Fourth Branch, I outline that a state bankruptcy could be the catalyst to start a Fourth Branch in that state. Unfortunately the idea hasn't spread sufficient yet.
https://www.smashwords.com/books/view/277193
I live in Illinois and the running conversation today Im hearing is how many officials need to get "offed" to wake them up....
Current count as of this morning is the entire legislature.....
Talk is fucking cheap, lead the way Illinois!!!
Sorry, Madigan, Cullerton and the rest of the democrats have to pay their public union members their $100,000/yr plus pensions.
ah... I think you mean they have to confiscate funds from non-union, non-government workers paychecks to pay the union, government employees.
Those two fuckers should be put in jail.
Lottery...A tax on people that are bad at math.
and citizens paying into social security... just saying
Doesnt that also apply to all forms of gambling. Who would invest in a financial instrument with a rate of return of -7.5%.
Her boyfriend will probably have to pay taxes on his "winnings" BEFORE he gets the money...... HA !!! The Tribe is the best , they keep pushing and pushing and never know when to stop.
Well, generally speaking of course.
For winnings as large as 250 grand the taxes, Federal, State, and local are taken out upon payout.
Now, it should be pretty obvious why they do this.
You have to present the winning lottery ticket to the lottery ticket office and .gov gets its cut before you see a penny.
Generally, for payouts of say, $600, no taxes are taken out, but a MISC-1099 is sent to .gov of all stripes so that you can pay income taxes on your winnings, but only on the $600.
When you go back to collect the rest, say the rest of the 250 grand you won, you receive a check minus the .gov skim.
For smaller payouts like the minimum amount awarded no taxes are taken out at time of payout and no .gov payin papers are issued either. It ain't worth the effort to try and collect taxes on a $3 dollar winning ticket.
So, generally, you only pay taxes on the income received and not on the potential income you might receive.
But, of course, who knows, maybe they'll change the rules and make everyone pay taxes on potential income whether they recieve the income or not.
And, wouldn't that be interesting. The .gov determines that your potential income is 450 grand a year, so fuck you, pay me.
The fraud is the pension protections in these state constitutions...
Let's see how quickly the state union lawyers sue if they did the same with their pensions.
I am not stupid i do not play in the lottery, i buy stocks, bonds and paying through my nose for my 401k !
O wait.
CHICAGO LOVES YA BABY!!!
How about the Fed? The source of all frauds.
Can I get mine in nickels?
Illinois needs to take the fraud to the next level. I wonder if any of those crisis actors have the dramatic range to play Lotto winners?
The Land of Stinkin..
The next lottery will be involuntary. Katniss will be the hero.
The state is down to just paying bond holders. That's the same thing as only making minimum payment on your credit card.
‘The states no longer pays out, but I think I'll keep playing the lottery.'
LOL – do these idiots put money into broken slot machines too?
‘This slot machine doesn’t look plugged in. I’ll try my luck anyway…”
Hmm, so if anyone in Illinois owes state taxes, they should just pay them with IOUS written on napkins lol
The lottery should be run by private interests, not states, but Government doesn't like competition so....
In anycase pillaging the lottery will only destroy confidence in the system, I bet the lottery tickets are selling at a huge discount now , say a 5$ is probably going for 1-2$ and a 20$ ticket probably 4-5$.
Lotto distributors are going to want to get these worthless tickets out ASAP, and O/C some will take advantage of the fiasco and cheat on the tickets (remove winning tickets from the roll and sell the losers).
Tampering with the lotto is pretty easy from a distributors end I can think of numerous ways it can be done with sratchoffs etc...
Id probably buy 500$ worth of Illinois scratch offs for 100$ ^^ . . . always the small* chance they will eventually pay.
The State of IL should immediately hire John Lovitz, and create a commercial with him sitting in a luxurious study in a fine leather chair with a smoking jacket on. He turns to the camera with a warm smile and says this:
"To all of you fine Illinois residents who play the lottery, I understand that you may have found some recent news reports to have been somewhat disconcerting. However, let me assure you that the recent changes in policy relating to payouts have been carefully constructed, and are now in place for your own benefit!
You see, with decades of data now available, it has become clear that a startlingly high percentage of six, seven and eight figure lottery winners tend to squander their new-found wealth very quickly. So, as a public service, the Illinois Lottery Board and the State of Illinois have decided that a 'cooling off' period after a big win will greatly benefit most winners. The delayed gratification will allow them to plan their use of the windfalls more carefully, and resist the temption to spend large sums recklessly.
Yeah! That's the ticket!"
Then cuts to Toonces The Driving Cat going over a cliff with IL taxpayers in the backseat
Lottery to issue checks,” the Illinois Lottery said in a statement. “Please note that the funding to pay winners exists, but the legal authority to issue checks does not.”
Is this the same as "registered" vs. "eligible" for PM?!!!
Well, almost evewry week 1 or more people win millions, sometimes 10's of millions after taxes playing lotteries. Yes, very small probability. So pray tell, what's the potential return on a cup of Stabucks coffee or a beer at your local bar?? I will take a 1 dollar chance once a week over a 3 dollar cup of coffee or a 5 dollar beer. Far better odds of ROI.
Nope, a coffee or a beer always have a ROI after about 12 to 24 hours.
Just stop eating and drinking completely. Then you can buy a shitload of tickets.
Except you might meet someone at the local bar that somehow leads you into the business deal of a lifetime or even a business deal that is worth more than $1, $3, $5.
AND you're supporting a local business, which pays you back by providing jobs in your community, purchasing goods from farmers and brewers and might even get you laid!
Aren't those payouts really annuities ? Are they really saying they don't have the funds to establish the annuity (which would be a fraction of the actual payout amount) ?
No, they say they have the funds, just not the authority to issue the checks due to ongoing budget disagreements between the governor and the legislature.
(Which means we don't have enough money to pay everyone off so we'll fuck over those with the least political clout, IL state lottery winners, and use the budget disagreement as our political cover, wink-wink.)
Reading comprehension is indispensable!
I'm sorry volks, this information just can't be transmissible through emojis.
Yes, Rhonda, you probably would, but you’re not the one selling the tickets, the state is and while you can sue the state (and some people apparently are), you can’t really put it in jail. "
That's true, but you can send the state an IOU for income taxes. After all, the state set the standard.
You didn't win that.
CA issued some IOUs back in '08, and it's just a matter of time until these are exchanged at a discount, creating n. american banana republic black market values that reflect the level of local corruption.
You got to be in it. To win it. But when we pay. We can't quite say.
Buying an IL Lotto ticket: $1
Winning the IL Lotto: Prize less
Thanks for the laugh. Can't win if you do not play and you can only play for fun.
Only the gov't could screw up the most lucrative casino in the world
Rauner was too busy helping dedicate a monument in Bloomingdale, IL to Banderist murderers in Kiev to notice all the thieves looting the state of Illinois!
http://novorossia.today/shame-unveiling-of-a-monument-honoring-the-blood...
To think I even voted for this POS moron makes my blood boil!
Ukraine is Dead! http://thetruthspeaker.co/2015/04/19/10-reasons-ukraine-is-dead/
From WAR MEMORIALS to WAR MONUMENTS in just a few short generations.
This is unfucking believable.
An engineered coup and a bloody civil war celebrated in broad daylight!
So you think Quinn was a better choice? He's the crook that got the state in this much of a messs in the first place, not to mention the crooked governors before him. Rauner NOW has to deal with his and all the previous fiscally irresponsible governors before him. It is Rauner now that is getting the blame for the past mismanagement. Good for Rauner in having the stones to go toe to toe with that jerk Mike Madigan that's holding everything up. Madigan is poitical grandstanding, period!
So despite Illinois being run exclusively by demoncrats for the last 20 years and now it is all Rauners fault? LOFL
"our government is committing fraud on the taxpyers" - well, thanks for waking up
"It Can Happen To You". (Corzined)
My mentor used to call it rolling, floating and dancing when it came to money.
Illinois isn't rolling in it and they're NOT floating a check.
They're dancing, hoping everyone continues to sustain their economy with purchases of lottery tickets
Maybe her boyfriend traded her in a newer model that had less of a carbon footprint.
Why would she be able to stop working, anyway? She didn't win the lottery--her boyfriend did.
Now I am confused...the state cannot issue checks to lottery winners because...
"Please note that the funding to pay winners exists, but the legal authority to issue checks does not.”
Illinois does not have the legal authority to issue checks whether it is $10,000 or $600. The amount does not matter... the comptroller does not have the legal authority to issue any checks.
lets see the lottery takes in a million of which it only has to pay out five hundred thousand and they can only come up with six hundred? i think its time to break some legs
And in a related story, Republican Congressman, Dennis Hastert, will plead guilty so the good people of Illinois will never know what crimes he actually committed.
Unless that crime was lying to the FBI about why he withdrew increments of less than $10,000 out of his bank account. Some vague referral to "banking laws." So, now the FBI works for the private Federal Reserve...?
https://www.yahoo.com/politics/s/hastert-hush-money-case-returns-us-cour...
Frame and hang your winning lottery ticket on the wall. Caption, still waiting for payment. Call Saul for your entitled settlement structure payment.
We IOU'd some folks.
Play now, get paid in the unforeseeable future. This sounds like the Social Security playbook Ponzi Scheme.
Well the Fed can just print the money foir the Lottery winnings. What is wrong with that? When the Banks lost their money on the markets the Fed printed the checks for them.
BRING BACK ROOM TEMPERATURE IQ PAT QUINN........oh wait, he was the dumbfuck along with Madigan that got us in this mess......nevermind.
The article lost me on the part where people actually still live in Illinois.
You know, this could actually be a huge boon to the economy. Think of it...
They rig the lottery so that EVERYBODY wins.
Then issue IOUs to be paid at some future date.
And all the winners go out and spend, spend, spend everything they have-- confident in the assumption that they will be rich in a week or so.
1) Why do I have the nagging hunch that all the staff at the Lottery Office is still getting a check every week?
2) I'm waiting for an unpaid winner to get a court judgment, and to then have the Cook County Sheriff start carrying furniture out of the Lottery Commission headquarters with a levy order. I'd subscribe to watch that on pay-per-view.
http://www.cookcountysheriff.com/courtservices/CivilServices_LevyOrReple...
Biz idea: Buying winning tickets at 10 cents on the dollar.
I think the probability of default is greater than 90%.
Governor Pat Quinn halted the Illinois Lottery management contract with Northstar Management Group in December of 2014. Who was Northstar?
http://northernpublicradio.org/post/illinois-drops-lottery-management-co...
Lori Montana (Chairperson): The DMM Group
David Gupta: President, System Development Integration LLC (SDI)
Karen Hasara: Former Mayor of Springfield
Manny Sanchez: Partner at Sanchez Daniels & Hoffman LLP
Rufus Williams: CEO, Olympus LLC; Former Chair of Chicago Public Schools Board
Lori Montana has extensive background working in every department of the Chicago government and has since left Northstar to work at Oberthur:
http://www.world-lotteries.org/cms/index.php?option=com_content&task=vie...
Oberthur is the company that is bringing the micro-chip technology to debit and credit cards, as well as smart card technology.
http://www.oberthur.com/emv/
The customers of SDC are virtually every major arms company and military wing of the US govn:
http://sdchsv.com/customers.html
Why the quotes around fraud? That's exactly what it is. Where did the money go?
The fact that politically connected assholes have been fleecing the public purse for decades is now just damned broke. No money left cause not enough people working. Not enough people working because of NAFTA and other shit trade agreements while the crony connected assholes, continue to fleece us all. Only satisfying thing about is that eventually most of those assholes will be completely screwed when SHTF. Dam!
Why is it that states with budget problems keep doing stupid things?
When you get to skim half of all lottery sales - why would you do something that discourages lottery sales?
I just moved from "The Worker's Paradise" to America's Pecker.....Florida.
Illinoise make it hard to move out. You can't just buy a Winnebago and take off, you have to "establish residency" elsewhere.
They have 11 criterion they use to see if you have actually moved, to wit;
New primary bank
New primary broker
New doctors and dentists- that you use
New Church
Change your will and/or Trust to conform to your new address
New charities
New accountant
New friends and "social circle"
Minimum six monthes and a day during the first year in the new location
I have kept my "Summer Cottage" in the Chicago area.......if I ever spend more than 5 months and 29 days in a year there they will claw me back for tax purposes.
Not counting Rauner, in my 60 years there have only been three Governors that haven't gone to prison.
Getting speeding tickets fixed is still one of the passtimes of those of us that insist on driving V-8's.
This just in - Correction:
“Tax payment delays will occur because there currently is no moral authority for the Illinois Property Owner or the Illinois Taxpayer to issue checks,” the Illinois Taxpayers said in a statement.
“Please note that the funding to pay taxes exists, but the moral authority to issue checks does not.”
The taxpayers said the payments will be made once hell freezes over.
Two questions:
- Why do people still live in Illinois?
- Why are they still buying Illinois lottery tickets?
And why do people vote themselves into poverty?
A: People are stupid.
When they stop paying pensions there will be riots in the streets and martial law.
This story should tell any American their system is broken, run by incompetents, thieves and outright corrupt. How the fuck is it possible for lottery money to not be RING-FENCED? In the UK and Europe when you win the lottery, you get paid in FULL. If you win £167 million in the UK, you go to the regional office, they verify your ticket and they pay you in full on the spot. No lame arse instalments, but in full. The only debate to be had in the UK, is where 40% of the proceeds of all lottery sales for GOOD CAUSES is spent and which non-elected body gets to choose who the benefits. The U.S is rotten from top to bottom, yet wishes to export their degeneracy around the world. FUCK OFF!
Government employees will do anything to make sure their homes have heat, and if that means throwing this lady out in the cold they gladly do it.
I have a solution cut all government pay 25% and if needed bennies too.
Watch ...all this lottery nonsense will get blamed on these guys:
http://www.chicagotribune.com/news/local/politics/ct-lottery-private-man...
Progressives strike again.
The public sector unions have bankrupted another blue state. Even the socialist FDR knew you couldn't allow government employees to form unions.
How does this article NOT include this video?!
https://www.youtube.com/watch?v=7GSXbgfKFWg
To right the financial ship, The State of Illinois is buying massive quantities of Wisconsin lottery tickets.
One good thing about Illinios: They have the common decency to lock up their politicians when their done with them.
I would be able to deny her boyfriend, but if she came in swinging those arms I would have been afraid to say NO and given her the money.
I would sue.
Parasites need to eat too!
For starters, the odds of winning the lottery are incredibly shitty (almost as unlikely as quantum tunneling). But if you beat the odds, all you get is an IOU?
At least at a craps table, you actually have a chance of winning some money betting the point or playing the pass line.
Time to start firing some paid voters there.