Lottery winner on food stamps even after $1 million jackpot


Goober
#1
Lottery winner on food stamps even after $1 million jackpot
Lottery winner on food stamps even after $1 million jackpot | The Sideshow - Yahoo! News Canada (external - login to view)

Lottery winner still using Michigan Bridge card | Local 4 Defenders - Home (external - login to view)

DETROIT - According to a study, 25 percent of Michigan households receive food assistance—hardly a surprising figure considering today's economic picture. What is surprising, however, is that one of those homes is home to a millionaire.

This fall, 24-year-old Amanda Clayton won $1 million from the Michigan State Lottery. Sure, someone else getting handed a huge check might make some a little jealous, but many were outraged at Clayton's winnings, as she was still using a Bridge card.

"People are about to lose their unemployment and these welfare recipients are spending our tax dollars foolishly," an upset tax payer wrote to Local 4. "Please do a story on lottery winners on welfare."

Local 4 tracked Clayton down to her Lincoln Park home where cameras spotted her and a U-Haul truck, getting ready to move into a new house—that she paid for in cash—now that she has struck it rich. She also bought a new car.

These purchases are nothing out of the ordinary for someone who just won the lottery, however hidden cameras followed Clayton grocery shopping, where she admitted she uses a Bridge card to pay for her items. She said she gets $200 each month, from taxpayers, to foot her food bill.

When confronted, Clayton said she didn't think she was doing anything wrong.

"I thought that they would cut me off, but since they didn't, I thought maybe it was okay because I'm not working," she said.

She said she didn't actually get the full million, because after she took a lump sum, the total dropped down to $700,000. After taxes, it was just more than half a million, Clayton said.

Even still, Clayton said she thinks she still has a right to the $200 a month in state funds.

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

Needless to say, many taxpayers were quite upset with the situation. The Local 4 Defenders went to Ida Township to speak to Rep. Dale Zorn, who is pushing a bill to stop lottery winners from continuing to cash in on food assistance.

"Public assistance should be given to those in need of public assistance, not those that have found riches," Zorn said.

The bill has already passed the House, and Zorn is hoping it will pass the Senate soon.

"We need to have the lottery commission notify the state so that state can cross check those who are on assistance," Zorn said.

There are two different bills—one in the House, another in the Senate that have each passed which would require lottery winners of prizes of $1,000 or more to have their names cross checked with the Department of Human Services. If someone wins big, their food assistance would then be stopped.

Unless the law changes, it doesn't look like lottery winners will be changing their ways. Clayton said she will keep using her Bridge card until the state cuts her off. She said it's because she deserves it.

"It's just hard, you know. I'm struggling," she said.
 
WLDB
#2
Im for a social net, but this is ridiculous. I hope our system wouldn't allow this to happen.
 
MHz
#3
Not much you can do if the winnings are tax exempt. The interest they earn will cut off the free aid in the coming year as it will be classified as income.
 
TenPenny
#4
Quote: Originally Posted by MHzView Post

Not much you can do if the winnings are tax exempt. The interest they earn will cut off the free aid in the coming year as it will be classified as income.

In the US, winnings are not tax exempt.
 
PoliticalNick
#5
Quote: Originally Posted by WLDBView Post

Im for a social net, but this is ridiculous. I hope our system wouldn't allow this to happen.

I hate to tell you but a few years back there was a couple on Vancouver Island who collected welfare for about 6 months after winning $4.5 million. They would have collected longer but their assistance worker saw their picture in Luck Magazine and had them cut off.
 
WLDB
#6
Quote: Originally Posted by PoliticalNickView Post

I hate to tell you but a few years back there was a couple on Vancouver Island who collected welfare for about 6 months after winning $4.5 million. They would have collected longer but their assistance worker saw their picture in Luck Magazine and had them cut off.

I hope they were made to pay the system back for those 6 months.
 
lone wolf
+1
#7  Top Rated Post
I'd dump the assistance in a heartbeat. Sucks being owned....
 
The Old Medic
#8
This woman could be, and SHOULD be, prosecuted for fraud.
 
gerryh
#9
The state has cut her off.
 
damngrumpy
#10
Ridiculous or not, its the law. Most people don't realize if you win a lottery in Canada
you can still claim unemployment insurance for the period that is left.
She paid taxes on the amount she won which is a little different in the USA. It all comes
down to what is the law? If it states she is entitled it may be ridiculous but she would be
entitled. I agree it shouldn't be allowed but if it is why not collect is the modern day
attitude
 
petros
#11
500K is a lot of money?
 
L Gilbert
#12
Quote: Originally Posted by WLDBView Post

Im for a social net, but this is ridiculous. I hope our system wouldn't allow this to happen.

It does.
Anna was telling me about this woman who came into the food bank she volunteers for once in a while. The woman drove near to the bank and parked in a fairly new Caddy. She was dressed in some pretty posh gear so Anna asked her why she was at the bank. The woman told her that she was in hock up to her eyeballs and couldn't afford enough food for her family. No clue that something was off at all.

Quote: Originally Posted by WLDBView Post

I hope they were made to pay the system back for those 6 months.

Oh yeah. BC Revenue gets cranky about stuff like that and they put liens on property until the amount is paid back.

The rate of tax on major winnings in the USA is 38% and it is collected before the winner can claim their prize.
In Canada, www.cra-arc.gc.ca/tx/ndvdls/t...nttxd-eng.html (external - login to view)
 
relic
#13
Don't know about you petros,but 500k is a LOT of money to a lot of people,like me and evrybody I know.
 
Machjo
#14
"I feel that it's okay because I mean, I have no income and I have bills to pay,"

Those 700 000 dollars aren't an income? I'd like to know her definition of income. for me it's short for incom(ing money). That's lots of incomeing money if we define it that way.
 
critter171
#15
Quote: Originally Posted by GooberView Post

Lottery winner on food stamps even after $1 million jackpot
Lottery winner on food stamps even after $1 million jackpot | The Sideshow - Yahoo! News Canada
Lottery winner still using Michigan Bridge card | Local 4 Defenders - Home
DETROIT - According to a study, 25 percent of Michigan households receive food assistance—hardly a surprising figure considering today's economic picture. What is surprising, however, is that one of those homes is home to a millionaire.
This fall, 24-year-old Amanda Clayton won $1 million from the Michigan State Lottery. Sure, someone else getting handed a huge check might make some a little jealous, but many were outraged at Clayton's winnings, as she was still using a Bridge card.
"People are about to lose their unemployment and these welfare recipients are spending our tax dollars foolishly," an upset tax payer wrote to Local 4. "Please do a story on lottery winners on welfare."

Quote has been trimmed, See full post: View Post
Being on asstaince in health and human servince you are suppose to report any changes... she knew what she was wrong. she had plenty of money you don't go buy another house and still have another house.... you won money get you lazy butt off food stamps.... when she losses all of her money she can now go back to getting food stamps
 
SLM
#16
Quote: Originally Posted by petrosView Post

500K is a lot of money?

It sure as hell is if you're coming from a place where the Food Bank is your major grocery supplier.
 

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