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  1. #1
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    Tax on Lottery winnings

    It has been on my mind, lately. In Canada the lottery is tax free, well more or less. A percentage of the proceeds are withheld for charities from every draw. When you win 2 million - you actually get 2 million - no tax. I can't say it's the best situation since you rarely hear about the people who have won after the fact. It just seems to me that, if the U.S. Gov't. cut their chunk out first, it would make life easier and there would be less bad press after the fact. Just my 2 cents.

  2. #2
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    Re: Tax on Lottery winnings

    The US should do the same thing in my opinion because we all have to pay all kinds of tax already....at least we should get 1 thing free of tax....
    Back to the real life, our uncle Sam never gives to his people anything for free thou...He always wants our people's money as much as he can...by making out all kinds of rules, taxes...etc...
    Welcome to the real world... :rolleyes:

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    Re: Tax on Lottery winnings

    haoitrung - Wow, thanks for the reply! I really expected more response. In any case, the government always takes "their share", in Canada and the U.S.! This is just one very rare occassion that the Canadian government have (probably by accident) come up with a better idea. There is tax - it's just taken first- flat- no calculation- no accountants - no lawyers - just- here's the amount. Perhaps that's the reason our lotterys are 1,2,4,5,20,25 million dollars tops. I think it's a better plan. Just my thoughts.

  4. #4
    coontie is offline Vashudeva; Ferryman - doing the work...
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    Re: Tax on Lottery winnings

    You have my attention - I hear you! But as you might know, these governments say: with disdain and indifference; what are You going
    to do about it?

    WE just had a sucessful winner in the Powerball Lottey here. The amount
    was, before taxes a purported $365 million. After taxes, with a cash
    payout, which is what most people want, the net amount was $177 million.
    Virtually noone wants the anuual, lifetime pay-outs, that say if one
    was young, perhaps 18 and lived to 90 years of age would maybe
    get more. The odds played by the establishment here is that one
    may very well only live another couple of years, be ran over by a car
    and not be around to collect any further. The remaining amount is NOT
    transferrable to heirs. So they get to keep what is left. BUT, the
    government ALWAYS, still, gets their share. As in the Devil gets his
    due!

    Our government kept over half of the inital amount. Then, additionally, this
    remaining amount will be taxed as it is spent; local, state and additionally
    some federal.

    Then at Income Tax declarations each year, the amount in the bank,
    interests, dividends, property purchased, will be additionally taxed.

    In return for this money "YOUR" government and "MINE" suggest that
    IT will provide services and considerations that we as individuals
    cannot.

    Then, however this turns out, as regards equitable, well, it just is revealed.
    They mostly use it to feed their gluttonous appetites and to pay their
    cronies in order that there future political well-beings can be assured.

    In the meantime, we are really never allowed to set at the "feat table".
    Only to pay for their fare.

    And the attitude is: what are you going to do about it? BEst I can
    say is that we just take our licks and go on! There are worse alternative
    that "they" have in store for us if we care to buck the system! :(

    In our country, we have just had it announced that there will be some far
    reaching social services funding cuts; a dismal outlook for future improve-
    ments in our healthcare and social security system, etc.

    BUT, I am willing to wager anyone that within the coming year of 2007
    our congress will anoounce a pay raise for itself and the President and
    his Cabinet Members. :rolleyes:

  5. #5
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    Re: Tax on Lottery winnings

    I know. It seems to be a losing battle everywhere. I read a very disturbing memo about major canadian cities imposing a "new" (read duplicate) tax on business parking lots. $1 per sq yd. ($30 per car/mo is their figure). They intend to impose a new tax on all the common areas (sidewalks, grass, bike racks and elevator entrance areas). I already pay a business property tax that includes the "lot" area of the building. This idea is common (we're told) in all the large cities in North America. I think not. Our biggest problem is that we are feeding too many levels of government. I don't know how to deal with it - but I do know that small businesses will not survive it. I'm way off topic. This tax is not in Alberta, yet. I don't expect it to be - unless the liberals gain control. Thatis way off topic as well.

    Back to the "net lottery" idea. Ours have never been more than 30 million (as far as I remember) but you get that amount "tax free" or probably more accurately after tax. The reserve (percentage) lottery money goes to fund charities, health care, sports, children's athletic programs,and the like. I like the idea just because the accounting is open. It is what it is and it's exceedingly successful. One very good thing.

    We all need a few more........

  6. #6
    coontie is offline Vashudeva; Ferryman - doing the work...
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    Re: Tax on Lottery winnings

    Quote Originally Posted by linda49
    I know. It seems to be a losing battle everywhere. I read a very disturbing memo about major canadian cities imposing a "new" (read duplicate) tax on business parking lots. $1 per sq yd. ($30 per car/mo is their figure). They intend to impose a new tax on all the common areas (sidewalks, grass, bike racks and elevator entrance areas). I already pay a business property tax that includes the "lot" area of the building. This idea is common (we're told) in all the large cities in North America. I think not. Our biggest problem is that we are feeding too many levels of government. I don't know how to deal with it - but I do know that small businesses will not survive it. I'm way off topic. This tax is not in Alberta, yet. I don't expect it to be - unless the liberals gain control. Thatis way off topic as well.

    Back to the "net lottery" idea. Ours have never been more than 30 million (as far as I remember) but you get that amount "tax free" or probably more accurately after tax. The reserve (percentage) lottery money goes to fund charities, health care, sports, children's athletic programs,and the like. I like the idea just because the accounting is open. It is what it is and it's exceedingly successful. One very good thing.

    We all need a few more........
    I understand; it is difficult to appear to remain "on topic" as once a person
    commences to address certain issues, such as this, one thing leads to
    another, and there are connections, relations, to many of these issues.

    In your last paragraph, that is an interesting dialogue regarding how the
    lottery money is handled.

    In our state of Texas, the bulk of that state's lottery share was SUPPOSED
    to go to all of the schools in the state to help the funding. But, somehow,
    this hasn't happened. I don't think any of the public has any idea of what
    is being done with that money.

  7. #7
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    Re: Tax on Lottery winnings

    Coontie - U.S. lotto payouts are astronomical in comparison to ours in Canada. 365 million is an obsene amount of money - but, as you say, netting only half that amount is not very comforting. If you paid that amount of tax you should be "tax exempt" for the rest of your life, at least! Another interesting question is - where are all the millionaires from all the lotto payouts from the past ten years? I think you and I should be in charge of the lotteries!

  8. #8
    coontie is offline Vashudeva; Ferryman - doing the work...
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    Re: Tax on Lottery winnings

    Quote Originally Posted by linda49
    Coontie - U.S. lotto payouts are astronomical in comparison to ours in Canada. 365 million is an obsene amount of money - but, as you say, netting only half that amount is not very comforting. If you paid that amount of tax you should be "tax exempt" for the rest of your life, at least! Another interesting question is - where are all the millionaires from all the lotto payouts from the past ten years? I think you and I should be in charge of the lotteries!
    I agree that we should be in charge of the lotterys. I am sure that we
    each could VERY COMFORTABLY manage to spend those millions!

    I used to try, but seldom now. Most I ever won was $100.00 for $1.00
    I spent. Not bad return on investment; one hundred to one! Yippee!.

    Anyhow, where's all the lottery winnders and their millions? My
    opinion, but I think they just convientely "got lost."

    I would think that once one becomes a million, especially MULTI, it
    is better to become anomyous. Otherwise money grubbers would
    pester one to no end. I get enough "junk-mail" in my mail now and
    I am a person of somewhat meager means.

    I did hear that a man here in the state of Kentucky that won quite a
    few million dollars about six years ago is dead-broke now. I don't
    know the specific details, but I think I heard he stated that
    he "had some bad luck!" :eek:

    By the way, I see your Indian Feather Avatar with the Maple Leaf?
    I think you are Canadian, so that accounts for the leaf. The Indian
    Feathers; are you North American Indian? If so, what tribe?

    I have Iriquois ancestry through my mother. Her grandmother on her
    mother's side was Iriquois.

  9. #9
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    Re: Tax on Lottery winnings

    coontie- The best I can claim is "metis". Sadly, the connotation of "indian" was very degrading to my grandparents. I'm sure they are smiling down on the "First Nations" children, now. My ancestry is a mix of the worst possible. Native canadian, french, irish, english - I can argue myself to death!!!

    On the lottery topic - Wouldn't splitting the really big pots make sense? Say 10 million minimum. That's alot of money. So 2 or 3 (or 10) tickets are winners in the 100 million draws. It really should be "after or no tax money". Advertising 237 million is a false claim. Can you sue the government for false advertising? Just a thought.

  10. #10
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    Re: Tax on Lottery winnings

    Quote Originally Posted by hoaitrung
    The US should do the same thing in my opinion because we all have to pay all kinds of tax already....at least we should get 1 thing free of tax....
    Back to the real life, our uncle Sam never gives to his people anything for free thou...He always wants our people's money as much as he can...by making out all kinds of rules, taxes...etc...
    Welcome to the real world... :rolleyes:
    Didn't we revolt b/c of taxes. Here's my point. We were upset that we were being taxed without representation, right?

    Well, now we have "representation" and we are still taxed, ironically for much more! When was the last time we voted for TAXES. How can we be "represented" if we didn't ask for the taxes.

    Fishy! ;)

    PS: Even though I pay my taxes, I have wondered for YEARS about the tax system in America. Is the system set on fraud?

    I found this online:

    http://techrepublic.com.com/5208-623...188731&start=0

    Personal income tax in the USA (1 of 69)
    I lifted this item from a discussion at a Christian website.

    I invite (read that as encourage) anyone to study this and to either vindicate it or debunk it.

    Luke 20:25 And he said unto them, Render therefore unto Caesar the things which be Caesar's, and unto God the things which be God's. (KJV)

    The point here is that we are to give to Caesar the things that belong to him not the things that do NOT belong to him. But in America we have a different situation.

    Under a Caesar a person is bound to obey him because he is the ruler and sole authority, but we do not have a Caesar...at least not yet.

    Here in America we are governed by "THE LAW",..that is...the United States Constitution and protected by it and The Bill of Rights. Under this system it is "We The People" who are the rulers, not the government we elect. The Constitution is the sole authority that ALL must obey including the Government. If a law IS lawful and is not in violation of the Constitution, then we are to obey it and make sure the government does too. If the law, including the Tax Law under Title 26 USC says we have to pay a Federal Income Tax then we are required to. HOWEVER if the law does not say we are required to file or pay a Federal Income Tax then we are not to pay it.

    The problem is that Title 26 USC was written in such a way as to deceive the American people but at the same time tell the truth. That is why the referrence sections of each section was removed from the last issue of Ttile 26 but did exist in the previous issue. When you investigate it you will find something very interest. According to the LAW, USC Title 26 known as the Internal Revenue Code, the final section in which we are to determine our Federal Income Taxs is burried in a little known section under Subsection "N" section 861. In this section it makes the final determination as to WHO owes Federal Income taxes. You will be shocked to find that you will not find the DOMESTIC income of US Citizens to be taxable. Foreign income yes, Non-Resident Aliens yes, Foreign Nationals yes, but NOT the domestic income of US Citizens. Domestic income means any money you made within the 50 States and it's NOT taxable.

    The Government and the IRS are up in arms over the truth being exposed and are trying to do anything to quash it, but they do realize that thanks to Patriots and the internet, it's a matter of time before the momentum of truth will be unstopable. For more information... go to http://www.whatistaxed.com (also -- http://www.taxableincome.net -- under reconstruction so keep checking) Numerous former IRS agents, Tax Attorneys and CPAs among others are coming forward and blowing the whistle

  11. #11
    coontie is offline Vashudeva; Ferryman - doing the work...
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    Re: Tax on Lottery winnings

    Quote Originally Posted by linda49
    coontie- The best I can claim is "metis". Sadly, the connotation of "indian" was very degrading to my grandparents. I'm sure they are smiling down on the "First Nations" children, now. My ancestry is a mix of the worst possible. Native canadian, french, irish, english - I can argue myself to death!!!

    On the lottery topic - Wouldn't splitting the really big pots make sense? Say 10 million minimum. That's alot of money. So 2 or 3 (or 10) tickets are winners in the 100 million draws. It really should be "after or no tax money". Advertising 237 million is a false claim. Can you sue the government for false advertising? Just a thought.
    I've heard "Metis" - not sure what it means?

    Sue the govt. for "false advertising"? Well, you know how governments
    are... how can one sue from a prison cell? :confused:

    Splitting the large lottery pots? I see your point. One person getting all that
    money; it has happened here. What do they do with it? Well the one huy
    I mentioned, I think in Kentucky blew, or allowed hisself to be "relieved"
    of I think around 90 millions dollars?

    Oh yeah, there's always THOSE around that know how t and are always
    very willing and adept at assiting someone in getting rid of their money.

    I would certainly be happy with 8 - 10 million dollars! :D

  12. #12
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    Re: Tax on Lottery winnings

    Well, I'm hoping for the best - got my ticket on the 14mil lotto drawing tonight. Keep your fingers crossed for me! The odds of winning are 1 in 13,983,816.
    I know exactly what I would do with the money if I won. Have you thought what you would do with a whopping pile of cash?

    p.s. - metis is a person of mixed blood - indian and other(usually french).
    Last edited by linda49; 03-16-2006 at 01:52 AM. Reason: addition

  13. #13
    coontie is offline Vashudeva; Ferryman - doing the work...
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    Re: Tax on Lottery winnings

    Quote Originally Posted by linda49
    Well, I'm hoping for the best - got my ticket on the 14mil lotto drawing tonight. Keep your fingers crossed for me! The odds of winning are 1 in 13,983,816.
    I know exactly what I would do with the money if I won. Have you thought what you would do with a whopping pile of cash?

    p.s. - metis is a person of mixed blood - indian and other(usually french).
    Metis; yes, I remember now that you mentioned the definition.

    Of all the Caucasian Europeans that came to what is today North America,
    the French got along the best with the aboriginal people here.
    They frequently intermarried with them, as I suppose that you are aware of.

    Speaking of mixtures; ME: on my mother's side: Iriquois/French/Scotch/
    Irish and My Father: Austrian and Norweigan.

    What would I do if I won a big lottery jackpot? I would help a lot
    of people I know. Some of them are Native American friends. Mostly
    Choctaw and Sioux.

    I know some people say that, then change their mind AFTER they win.
    Want to keep it all. But I would remain true to what I've just said.
    I am sure of that!

    But, right now, I have been helping at least one person like that, although
    I don't have a lot of money. It is a long story that I wont go into, but
    he has allowed himself to be taken advantage of in several ways by others
    and so now is down on his luck.

    Also, he's a tribal Chief and Medicine Man.

    It has come to me though about giving money to other people. It is
    a difficult thing to figure out what is right, but I just do it and let it
    go at that. THat is all one really can do.

    But what I think about is that a person is on their own of certain
    prosperity & means and possibly left alone, some how, most would work
    it out alright. Then, someone like me comes along and see their plight
    and feels empathy for their situation and wants to help. Now, that
    interfers with their natural balance, where they were before. Now, if
    anyone continues to give them money, they come to depend upon that
    and start spending on things they otherwise wouldn't. Then, lets say
    that I at some point, for some reason, cannot any longer continue to
    give them money. Now that creates another problem for them. Now they
    have to somehow adjust to not getting that money any longer.

    I think about it sometimes like compared to in Alaska, the Sled Dogs are
    left outside in the cold all of the time. Some tender hearted person looks
    and see them in such miserable cold and says I will bring them in where it is
    warm. What this then does is destroys their hardness and resistance to
    the extreme cold and they no longer will survive outside. Now, they
    have to be inside all of the time.

    Does this make sense?
    Last edited by coontie; 03-16-2006 at 06:42 AM. Reason: spell

  14. #14
    coontie is offline Vashudeva; Ferryman - doing the work...
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    Re: Tax on Lottery winnings

    Quote Originally Posted by linda49
    Well, I'm hoping for the best - got my ticket on the 14mil lotto drawing tonight. Keep your fingers crossed for me! The odds of winning are 1 in 13,983,816.
    I know exactly what I would do with the money if I won. Have you thought what you would do with a whopping pile of cash?

    p.s. - metis is a person of mixed blood - indian and other(usually french).
    p.s. good luck. Hope you win the almost $14 million.

    I see our power ball jackpot is NOW back up in the High $80 miilion amount.
    Going up again!

    YOu should come across the border and buy some tickets for that!

    By the way, what would you do with the money if you won?

  15. #15
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    Re: Tax on Lottery winnings

    Coontie - I know exactly what you mean about people becoming dependant upon your assistance. My grandmother (my mother's mom) was the most kind and caring person I will ever know. My mother bought her a warm and beautiful "faux" fur coat one Xmas (my grandmother - at 70+ was still working -catering and cleaning). We visited at Easter and my mother was balistic - the warm coat was on the back of her lazy sister-in-law. She demanded an explanation from my grandmother. Her mother simply said - "She needed it more than I".
    My mother sent money and gifts, as she and my father could afford over the years, and it seemed that most found other homes. My mother was not happy. In that time, every few years we visited our grandparents in northern Saskatchewn. If my sister or I were ever to admire something - a picture, a nic-nak, a pillow, at my grandparents home, it would undoubtedly be found in our suitcase when we got home. I know the same is true for all the grandchildren. That was my grandmother's secret. She needed little to be happy - just that the people in her family and around her had what they needed. Some needed more than others - the ones who needed more got more - but no one was without. She left a present for me, under my pillow, on her last visit. A pair of ceramic flower candle holders - dainty and expensive by grandma's standard "plus chere" - and not from my mother. I remembered them- from long ago. Her note said she thought they were perfect for me - and I love them. God only knows who gave them to her - and so it goes. My grandma Augustine may have had the answer to "world peace". It's not about you - it's about family. The greater good.
    Last edited by linda49; 03-17-2006 at 05:55 AM.

  16. #16
    coontie is offline Vashudeva; Ferryman - doing the work...
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    Re: Tax on Lottery winnings

    Quote Originally Posted by linda49
    Coontie - I know exactly what you mean about people becoming dependant upon your assistance. My grandmother (my mother's mom) was the most kind and caring person I will ever know. My mother bought her a warm and beautiful "faux" fur coat one Xmas (my grandmother - at 70+ was still working -catering and cleaning). We visited at Easter and my mother was balistic - the warm coat was on the back of her lazy sister-in-law. She demanded an explanation from my grandmother. Her mother simply said - "She needed it more than I".
    My mother sent money and gifts, as she and my father could afford over the years, and it seemed that most found other homes. My mother was not happy. In that time, every few years we visited our grandparents in northern Saskatchewn. If my sister or I were ever to admire something - a picture, a nic-nak, a pillow, at my grandparents home, it would undoubtedly be found in our suitcase when we got home. I know the same is true for all the grandchildren. That was my grandmother's secret. She needed little to be happy - just that the people in her family and around her had what they needed. Some needed more than others - the ones who needed more got more - but no one was without. She left a present for me, under my pillow, on her last visit. A pair of ceramic flower candle holders - dainty and expensive by grandma's standard "plus chere" - and not from my mother. I remembered them- from long ago. Her note said she thought they were perfect for me - and I love them. God only knows who gave them to her - and so it goes. My grandma Augustine may have had the answer to "world peace". It's not about you - it's about family. The greater good.
    That is an interesting and touching story Linda. What ever happened to
    the Candle holders?

    You Grandmother sounded like a very sweet and caring person. Certainly
    benevolent and unselfish.

    Just another short story about giving: I knew an East Indian Man that
    I came to like as a friend. He is a Parapallegic confined to a chair. Never-
    theless, and one of the reasons I liked him so well; he was really courageous
    and positive in regard to dealing with his handicap.
    Anyway, to get to the gist of the story: I like to give my friends gifts;
    what I can afford and when. I gave him several what I considered special
    items that when I saw them seemed like something suitable for him and
    that he would like.
    Invariably, like your Grandmother, I would later visit some of the people he
    and I knew mutually and would see things I gave to him in their house.
    It came out that virtually everything I was giving him he would give to
    someone else. FInally, I decided that I would no longer do this as I
    felt he really didn't appreciate these things.
    But, do you know, actually, I came to realize that it is a fact that when
    anyone gives something to someone else, now that item is that persons
    property and it is perectly withing their right to do as they please with
    it?
    However, upon considering that, I realize it is perfectly withing MY right to
    not give things to people, intended for them, that they will in turn give to another.

    Silly me! :rolleyes: :D

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