# I pit the Michigan $2M lottery winner who continues to use food stamps.

**URL:** <https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503>\
**Category:** The BBQ Pit\
**Created:** [May 19, 2011, 9:17pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503 "2011-05-19T21:17:46Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![davidm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidm/32/225_2.png) [@davidm](https://boards.straightdope.com/u/davidm)\
**Post date:** [May 19, 2011, 9:17pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/1 "2011-05-19T21:17:46Z")

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[http://news.yahoo.com/s/yblog\_localdtw/20110518/ts\_yblog\_localdtw/2m-michigan-lottery-winner-defends-use-of-food-stamps](http://news.yahoo.com/s/yblog_localdtw/20110518/ts_yblog_localdtw/2m-michigan-lottery-winner-defends-use-of-food-stamps)

> [@](#):
>
> A Michigan man who won $2 million in a state lottery game continues to collect food stamps 11 months after striking it rich.  
> …  
> Eligibility for food stamps is based on gross income and follows federal guidelines; lottery winnings are considered liquid assets and don’t count as income.

The state has applied to the federal government for a waiver to cut off this jerks food stamps.

Just because he’s technically eligible doesn’t mean he has to keep using them. This assclown could refuse them. :mad:

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**Author:** ![Crafter\_Man](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/crafter_man/32/458_2.png) [@Crafter\_Man](https://boards.straightdope.com/u/Crafter_Man)\
**Post date:** [May 19, 2011, 9:25pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/2 "2011-05-19T21:25:16Z")

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While he may indeed be an ass-clown, I think laws that permit this type of thing to happen are more pit-worthy.

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**Author:** ![Bosstone](https://avatars.discourse-cdn.com/v4/letter/b/22d042/32.png) [@Bosstone](https://boards.straightdope.com/u/Bosstone)\
**Post date:** [May 19, 2011, 9:38pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/3 "2011-05-19T21:38:46Z")

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May be the first time I agree with **Crafter\_Man**. Change the law so the lottery is considered income, or change the eligibility requirement to include liquid assets, and the problem is solved. You have to assume people will grub for every bit of benefit they can give themselves, and not act nobly. Altruism is a fine thing, but shouldn’t be planned for.

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**Author:** ![davidm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/davidm/32/225_2.png) [@davidm](https://boards.straightdope.com/u/davidm)\
**Post date:** [May 19, 2011, 9:41pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/4 "2011-05-19T21:41:39Z")

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> [@Crafter\_Man](#):
>
> While he may indeed be an ass-clown, I think laws that permit this type of thing to happen are more pit-worthy.

You may have a point that they are pit-worthy, but I’m not sure that they are _more_ pit-worthy. I don’t think the people who wrote the law intended this loophole. Maybe they should have realized it, maybe they were careless, but I doubt they intended it. This man isn’t doing this inadvertently or through some oversight. He’s intentionally abusing the system and therefore, in my mind, more pit-worthy.

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**Author:** ![MaxTheVool](https://avatars.discourse-cdn.com/v4/letter/m/9fc29f/32.png) [@MaxTheVool](https://boards.straightdope.com/u/MaxTheVool)\
**Post date:** [May 19, 2011, 9:42pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/5 "2011-05-19T21:42:48Z")

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> [@Crafter\_Man](#):
>
> While he may indeed be an ass-clown, I think laws that permit this type of thing to happen are more pit-worthy.

I don’t disagree in this precise situation. Although the question is whether the law in general allows lots of “this type of thing” or whether this is a truly freakishly unusual edge case.

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**Author:** ![gonzomax](https://avatars.discourse-cdn.com/v4/letter/g/e8c25b/32.png) [@gonzomax](https://boards.straightdope.com/u/gonzomax)\
**Post date:** [May 19, 2011, 9:55pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/6 "2011-05-19T21:55:22Z")

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Well he does not have a job. But the next evaluation would broom him. I believe you can not have more than 50 bucks in the bank.

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**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\
**Post date:** [May 19, 2011, 10:01pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/7 "2011-05-19T22:01:16Z")

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> [@gonzomax](#):
>
> Well he does not have a job. But the next evaluation would broom him. I believe you can not have more than 50 bucks in the bank.

Complete nonsense.

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**Author:** ![just\_some\_guy5](https://avatars.discourse-cdn.com/v4/letter/j/5daacb/32.png) [@just\_some\_guy5](https://boards.straightdope.com/u/just_some_guy5)\
**Post date:** [May 19, 2011, 10:01pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/8 "2011-05-19T22:01:25Z")

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To clarify, the lottery winnings are absolutely considered income in the year they are won. As such, the guy probably paid a 40%'ish tax rate. In subsequent years, however, they are treated as liquid assets. In principle, it makes sense to adjust food stamps and other welfare payments for one’s wealth levels, and the public anger is understandable. In practice, I suspect this doesn’t amount to any substantial savings given that these sorts of folks (e.g., lotto winners) are quite rare.

Having said that, I don’t understand how he’s not earning enough in interest to be disqualified from food stamps. Maybe it’s all sitting in some checking account earning nothing in interest (wouldn’t shock me given this guy’s apparent sophistication)? Of course, he might simply be failing to report earned interest on his tax returns.

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**Author:** ![gonzomax](https://avatars.discourse-cdn.com/v4/letter/g/e8c25b/32.png) [@gonzomax](https://boards.straightdope.com/u/gonzomax)\
**Post date:** [May 19, 2011, 11:56pm UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/9 "2011-05-19T23:56:55Z")

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In most states, you can not have more than 2000 dollars in the bank, in cash and/or in investments and qualify for food stamps.

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**Author:** ![Steophan](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steophan/32/9595_2.png) [@Steophan](https://boards.straightdope.com/u/Steophan)\
**Post date:** [May 20, 2011, 12:03am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/10 "2011-05-20T00:03:57Z")

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If he’s paid 40% on his winnings, he’s more than entitled to claim any benefits he’s allowed for not working. For that matter, even if the winnings aren’t taxed, he’s presumably paid taxes before, and is still entitled to claim.

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**Author:** ![Blalron](https://avatars.discourse-cdn.com/v4/letter/b/35a633/32.png) [@Blalron](https://boards.straightdope.com/u/Blalron)\
**Post date:** [May 20, 2011, 12:15am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/11 "2011-05-20T00:15:19Z")

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> [@davidm](#):
>
> [Yahoo News: Latest and Breaking News, Headlines, Live Updates, and More](http://news.yahoo.com/s/yblog_localdtw/20110518/ts_yblog_localdtw/2m-michigan-lottery-winner-defends-use-of-food-stamps)
> 
> The state has applied to the federal government for a waiver to cut off this jerks food stamps.
> 
> Just because he’s technically eligible doesn’t mean he has to keep using them. This assclown could refuse them. :mad:

I honestly can’t work up very much outrage over this. I’m sure he’s paid enough in taxes on his winnings to cover even a lifetime of foodstamp benefits several times over.

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**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\
**Post date:** [May 20, 2011, 12:36am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/12 "2011-05-20T00:36:24Z")

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I don’t think the man’s actions are admirable but I agree with **Crafter\_Man**. The state was in control of the rules when they made up all versions of these games so it is their own fault. If you want to build rule-based social systems, you have build it well and accept every outcome if it is within the rules. Good for him. He just made an obvious point about unintended consequences of strict rule based social programs. I pit states that have lotteries to begin with yet outlaw most private gambling. They prey on their own citizens, often the poorest and most naive of them. He happened to be one of the few that got anything from it. Screw the state. One wealthy person on food stamps won’t bankrupt a state. They should worry about the totality of how all of their rule based systems are being used and whether they are really getting the desired results overall.

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**Author:** ![VinylTurnip](https://avatars.discourse-cdn.com/v4/letter/v/b2d939/32.png) [@VinylTurnip](https://boards.straightdope.com/u/VinylTurnip)\
**Post date:** [May 20, 2011, 1:05am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/13 "2011-05-20T01:05:57Z")

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Don’t worry. Within two years it’ll all be blown on strippers, expensive trinkets, and—in all likelihood— lottery tickets, and he’ll just be another honest Joe down on his luck who needs food stamps.

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**Author:** ![Cicero](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cicero/32/3594_2.png) [@Cicero](https://boards.straightdope.com/u/Cicero)\
**Post date:** [May 20, 2011, 1:06am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/14 "2011-05-20T01:06:54Z")

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Is it that simple that it is the rules of the game that need overhaul? If the provision uses the definition of income that is in another Act such as Income Tax Act (or whatever it may be called) it may be a separate Act that provides the basis and can’t be changed by the administrators of the game. This is just specualtion- I have no recondite knowledge of how the system works.

And if this guy had gone and blown all his money on hookers he would be entitled to foodstamps and he would be roasted here for being foolish and wasting all his money.

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**Author:** ![Ostrya](https://avatars.discourse-cdn.com/v4/letter/o/35a633/32.png) [@Ostrya](https://boards.straightdope.com/u/Ostrya)\
**Post date:** [May 20, 2011, 1:11am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/15 "2011-05-20T01:11:17Z")

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> [@Crafter\_Man](#):
>
> While he may indeed be an ass-clown, I think laws that permit this type of thing to happen are more pit-worthy.

You have a point, but I disagree - this conduct is worse than loopholes that might allow it. This guy should get some stones and get off the free handouts.

edited to say, “what **davidm** said”..

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**Author:** ![Simplicio](https://avatars.discourse-cdn.com/v4/letter/s/c37758/32.png) [@Simplicio](https://boards.straightdope.com/u/Simplicio)\
**Post date:** [May 20, 2011, 1:24am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/16 "2011-05-20T01:24:28Z")

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> [@VinylTurnip](#):
>
> Don’t worry. Within two years it’ll all be blown on strippers, expensive trinkets, and—in all likelihood— lottery tickets, and he’ll just be another honest Joe down on his luck who needs food stamps.

I dunno, guy seems pretty frugal to me.

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**Author:** ![Eonwe](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eonwe/32/240_2.png) [@Eonwe](https://boards.straightdope.com/u/Eonwe)\
**Post date:** [May 20, 2011, 2:09am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/17 "2011-05-20T02:09:20Z")

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> [@gonzomax](#):
>
> In most states, you can not have more than 2000 dollars in the bank, in cash and/or in investments and qualify for food stamps.

Cite? That seems like a ridiculously low bar; so low that I wouldn’t believe it. $2000 in any liquid form, and you’re disqualified for food stamps? So, if I manage to save up $2000 over the course of a year or so (about two months living expenses), I go off food stamps, even if my income hasn’t changed? What’s the point?

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**Author:** ![gonzomax](https://avatars.discourse-cdn.com/v4/letter/g/e8c25b/32.png) [@gonzomax](https://boards.straightdope.com/u/gonzomax)\
**Post date:** [May 20, 2011, 3:35am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/18 "2011-05-20T03:35:49Z")

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> [@Eonwe](#):
>
> Cite? That seems like a ridiculously low bar; so low that I wouldn’t believe it. $2000 in any liquid form, and you’re disqualified for food stamps? So, if I manage to save up $2000 over the course of a year or so (about two months living expenses), I go off food stamps, even if my income hasn’t changed? What’s the point?

[http://dss.sd.gov/foodstamps/eligibility/](http://dss.sd.gov/foodstamps/eligibility/)  
This one is S. Dakota. i saw several states , all the same.

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**Author:** ![Zebra](https://avatars.discourse-cdn.com/v4/letter/z/c0e974/32.png) [@Zebra](https://boards.straightdope.com/u/Zebra)\
**Post date:** [May 20, 2011, 5:59am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/19 "2011-05-20T05:59:31Z")

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> [@Eonwe](#):
>
> Cite? That seems like a ridiculously low bar; so low that I wouldn’t believe it. $2000 in any liquid form, and you’re disqualified for food stamps? So, if I manage to save up $2000 over the course of a year or so (about two months living expenses), I go off food stamps, even if my income hasn’t changed? What’s the point?

Yeah, trust me, food stamps don’t cover much and you have to be dirt poor to get them. You may think we have this great safety net but remember, a net, is mostly holes.

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**Author:** ![Malacandra](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@Malacandra](https://boards.straightdope.com/u/Malacandra)\
**Post date:** [May 20, 2011, 6:07am UTC](https://boards.straightdope.com/t/i-pit-the-michigan-2m-lottery-winner-who-continues-to-use-food-stamps/582503/20 "2011-05-20T06:07:26Z")

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Strongly doubt the food stamp system is going to be broken by the weight of all those greedy lottery millionaires claiming the benefits they’re technically but not morally entitled to.

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