$540M lottery has states anticipating tax jackpot
PROVIDENCE, R.I. (AP) — People queuing up for Mega Millions tickets aren't the only ones salivating over the record $540 million jackpot that could be won Friday.
Some state governments struggling through lean times know a hometown winner would bring a tax bonanza.
Taxes on a lump-sum payment option to a single winner could mean millions in badly needed revenue that could go to restore entire social service programs on the chopping block or fund hundreds of low-income housing units. It could allow states to forgo proposed new taxes or hire more state troopers.
The jackpot climbed Thursday to what lottery officials say is the largest in history. If a winner took the lump-sum payout on the jackpot's current amount, it would be an estimated $389.8 million.
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