Game Show Winnings

[Ian Wallis]

What I don't get is this: Why should the status quo be kept when the rest of the western world (Canada, UK, Eurozone) tax income but don't tax game show winnings. Someone please tell me why what's good for the rest of the western world isn't good for the US?

I think it's partly because taxes are generally much higher in Canada and the UK than they are in the US.  Also, the amount you could win on a game show pales in comparison ... well ... until WWTBAM came along, I guess.

[Ian Wallis]

What are the odds of your next door neighbor wanting a gazebo or grandfather clock or cotton candy machine at the time you win one?

I'm probably like a lot of people...if I was fortunate enough to win a lot of prizes on The Price is Right, when I'm signing the forms at the end of the show, I'd forfeit anything I didn't want or thought would be too much trouble.  If I won a $7000 hot tub (for example), I really have no interest in it.  I'd hate to give up something I won, but it's better than taking it, paying $1800 in taxes (or whatever it would be), and then not having a place to put it when it's delivered.

[clemon79]

[quote name=\'ten96lt\' post=\'239316\' date=\'Apr 12 2010, 01:48 PM\']It is exactly the same, but my point is, the odds of those sales going through without a formal channel are small since some of those prizes are in such a niche market it would make the revenue negligible to the argument.[/quote]
You're still missing the point, and really I'm not interested in making it again since I'm reasonably sure at this point that you're not gonna get it.

You're also assuming all people who sell won't report the income from the sale.

Yes, I am.

The IRS uses the honor system all the time for people making deductions and even sending in a tax return. If these people aren't declaring they made $9000 from selling a hot tub they won, then that probably isn't the only thing they're being dishonest about on their taxes and will get caught.

That is a completely ludicrous premise.
 

well maybe they should stop throwing the word free around a lot less

Double-negative aside, show me where that word is used in the first place. I don't believe I've ever heard Rich Fields invite someone to win a "free trip" or a "free car".

[Dbacksfan12]

[quote name=\'Scrabbleship\' post=\'239317\' date=\'Apr 12 2010, 04:03 PM\']What I don't get is this: Why should the status quo be kept when the rest of the western world (Canada, UK, Eurozone) tax income but don't tax game show winnings. Someone please tell me why what's good for the rest of the western world isn't good for the US?[/quote]Canada and the UK don't believe in capital punishment either.  I think its a fit punishment for many crimes, not just murder. [quote name=\'CLemon\']Double-negative aside, show me where that word is used in the first place. I don't believe I've ever heard Rich Fields invite someone to win a "free trip" or a "free car".[/quote]He doesn't, no.  But that's not the image game shows convey.

[Loogaroo]

[quote name=\'clemon79\' post=\'239314\' date=\'Apr 12 2010, 03:15 PM\'][quote name=\'Loogaroo\' post=\'239310\' date=\'Apr 12 2010, 12:09 PM\']Might as well not win your way on stage and get the Cutco knives and Lobstergram instead.[/quote]
Which, technically, you're also supposed to declare, are you not? Just 'cuz the sum total is less than $500 and the production doesn't have to file on it does not *technically* absolve you of the responsibility to declare and pay your tax on it. (Kinda like out-of-state sales-tax for online purchases.[/quote]
Actually, no you don't. I won $5xx as a questioner on Trivial Pursuit a couple years ago, which is under the $600 cutoff for receiving a 1099-MISC at the end of the year. I was told that They Officially Don't Care.

[clemon79]

[quote name=\'Modor\' post=\'239323\' date=\'Apr 12 2010, 03:05 PM\']He doesn't, no.  But that's not the image game shows convey.[/quote]
That's not my point. I have never EVER seen a game show use that word, and the OP was railing that "well, maybe they shouldn't say that, then!" They don't say that. Very likely for that precise reason.
[quote name=\'Loogaroo\' post=\'239324\' date=\'Apr 12 2010, 03:21 PM\']I was told that They Officially Don't Care.[/quote]
1) who's "they", and 2) by who?

[BrandonFG]

I'm only signing off on a hot tub if it takes me back to 1986. :-P

There's some prizes I can see myself accepting because I could most likely resell them, a car being one of them. I've mentioned this before, but if I win a $90,000 Viper or $50,000 Corvette on Golden Road, I'll gladly sign and resell for a lower price (say $75,000 for the Viper). Even when I take out the taxes, I'm still coming out ahead by about $50K, which is still better than what most shows offer, and the taxes are gone!

I'm not so sure I'd have that same luck on a hot tub or another dinette set. At least I do have a place to store the car...

[ten96lt]

[quote name=\'clemon79\' post=\'239325\' date=\'Apr 12 2010, 04:27 PM\'][quote name=\'Modor\' post=\'239323\' date=\'Apr 12 2010, 03:05 PM\']He doesn't, no.  But that's not the image game shows convey.[/quote]
That's not my point. I have never EVER seen a game show use that word, and the OP was railing that "well, maybe they shouldn't say that, then!" They don't say that. Very likely for that precise reason.
[quote name=\'Loogaroo\' post=\'239324\' date=\'Apr 12 2010, 03:21 PM\']I was told that They Officially Don't Care.[/quote]
1) who's "they", and 2) by who?
[/quote]
I've heard "free "X" for a year" said before. So you're saying to "win" something on a game show isn't meant to convey the image of getting something free or at least to not pay anything to get something? Why can't they disclose to the audience during the credits that "contestants are responsible for tax liabilities" next to the disclaimer that "contestants must meet eligibility requirements....." and have some more disclosure and honesty? Contests are starting to pay the taxes for certain prizes. I entered a contest on MSNBC to win a Maserati and in the rules they said they'd give $70,000 to the winner to cover taxes. The lottery where I live is offering a contest to pay for a couple's wedding and in the rules will pay the 28% withholding for the value of the prize. Why can't game shows evolve with these contests and help contestants out with prizes? What's with the determination to stay with the status quo?

[Loogaroo]

[quote name=\'clemon79\' post=\'239325\' date=\'Apr 12 2010, 05:27 PM\'][quote name=\'Loogaroo\' post=\'239324\' date=\'Apr 12 2010, 03:21 PM\']I was told that They Officially Don't Care.[/quote]
1) who's "they", and 2) by who?[/quote]

The IRS, and Mr. Ottinger in this thread.

[TLEberle]

I will reply again later on to cover some of the other points, but...

[quote name=\'ten96lt\' post=\'239339\' date=\'Apr 12 2010, 05:24 PM\']Why can't game shows evolve with these contests and help contestants out with prizes?[/quote] They can. They choose not to, or in some select cases, do. (Millionaire's Tax Free Mega Jackpot Week, for one)

What's with the determination to stay with the status quo?

Step One: Underpants
Step Two:
Step Three: ------

(anyone? Bueller? Bueller?)

[Kevin Prather]

[quote name=\'TLEberle\' post=\'239348\' date=\'Apr 12 2010, 06:43 PM\']Step One: Underpants
Step Two:
Step Three: ------

(anyone? Bueller? Bueller?)[/quote]
Profit!

[trainman]

[quote name=\'Scrabbleship\' post=\'239317\' date=\'Apr 12 2010, 02:03 PM\']Someone please tell me why what's good for the rest of the western world isn't good for the US?[/quote]

Please refer to The Debate Over Health Care Reform.

First sane explanation gets a cookie.

Also refer to The Debate Over Health Care Reform to understand why your cookies are going to go stale.

[Scrabbleship]

[quote name=\'trainman\' post=\'239357\' date=\'Apr 12 2010, 10:56 PM\'][quote name=\'Scrabbleship\' post=\'239317\' date=\'Apr 12 2010, 02:03 PM\']Someone please tell me why what's good for the rest of the western world isn't good for the US?[/quote]

Please refer to The Debate Over Health Care Reform.

First sane explanation gets a cookie.

Also refer to The Debate Over Health Care Reform to understand why your cookies are going to go stale.
[/quote]

This is why my goal is to see America evolve into Canada South. America is too backwards for its own good. I'll shut up now.

[J.R.]

Politics = Bad

[TLEberle]

[quote name=\'Scrabbleship\' post=\'239359\' date=\'Apr 12 2010, 08:03 PM\']This is why my goal is to see America evolve into Canada South. America is too backwards for its own good. I'll shut up now.[/quote]I spent some quality time in Canada. Yet again, you fail. You lose five dollars from your score and you're out of the next question.