Game Show Winnings

[Loogaroo]

[quote name=\'Scrabbleship\' post=\'239359\' date=\'Apr 12 2010, 10:03 PM\']I'll shut up now.[/quote]
Please do.

[TLEberle]

[quote name=\'clemon79\' post=\'239301\' date=\'Apr 12 2010, 10:16 AM\']It's income. Income is taxed in this country. If you have a problem with that, there are other countries you could move to.[/quote]Or we could go to a consumption tax. You're taxed on what you buy (above a subsistence level of food purchases which would be rebated to all participants) and not on what you earn. Personally, I would rather be taxed on what I can control, rather than be taxed on my earnings, when squelches innovation, investment and entrepreneurship.

What we have is a labyrinthine tax code that is nearly incomprehensible, and different kinds of income are taxed at different levels (to wit, capital gains on stock sales are taxed differently than is regular money.)

[quote name=\'Joe Mello\' post=\'239304\' date=\'Apr 12 2010, 11:10 AM\']One thing too many people fail to realize is that the government runs on taxes, so any cuts to taxes deprives the government of funding for stuff both good (unemployment) and bad (pork).  This is not to say that all taxes are good (looking at you, Dan Onorato), but all taxes are not bad.

Of course, if you disagree with me, there are several political "parties" that you join that share in your beliefs.  This country is still free, as far as I know.[/quote]Whenever I would blog about political waste, I would invariably get a couple of thicko morons who would say "But you have to have taxes to run things! If you don't have taxes, you have anarchy!" which is not what I want. I would be much happier to pay taxes if I knew that our government was lean, mean and streamlined. It is not. My idea of government necessity is different from probably everyone here, so I'll leave it with that. If you want to know more about the FairTax or what I think could be cut from the FedBudget, drop me a line.

[quote name=\'Loogaroo\' post=\'239310\' date=\'Apr 12 2010, 12:09 PM\']The government may consider passing a law rendering contest winnings non-taxable (I remember Stosh making a crusade of it years back), but game show winners isn't exactly an underprivileged group that either party can pander to.[/quote]Professor Malfeasance also "crusaded" for the surnames of contestants being told on-air, going so far as to come up with bogus "fake surnames" as he saw fit, and to have "Big Brother" moved back to 10p on the nights it aired.

So far, he's oh-fer-life on that account.

The government is not going to say "Hm, we'll take a pass on moar income!" unless it benefits them somehow. I don't think The Buzzer-Whanger Party is big enough to get a seat at the table.

[clemon79]

[quote name=\'TLEberle\' post=\'239366\' date=\'Apr 12 2010, 08:58 PM\']Personally, I would rather be taxed on what I can control, rather than be taxed on my earnings, when squelches innovation, investment and entrepreneurship.[/quote]
I would buy this if you could present me with examples of someone turning down a raise or other opportunity to make money for fear of landing in a higher tax bracket.

I would invariably get a couple of thicko morons

You misspelled "pinko."

[TLEberle]

[quote name=\'clemon79\' post=\'239386\' date=\'Apr 12 2010, 11:25 PM\'][quote name=\'TLEberle\' post=\'239366\' date=\'Apr 12 2010, 08:58 PM\']Personally, I would rather be taxed on what I can control, rather than be taxed on my earnings, when squelches innovation, investment and entrepreneurship.[/quote]I would buy this if you could present me with examples of someone turning down a raise or other opportunity to make money for fear of landing in a higher tax bracket.[/quote]Any time a business (or person/family unit) crosses state lines to buy/do business. Like the people in Vancouver who buy stuff in Portland because there's no sales tax and then come back home. Or the shitton of people who are going to make Res runs when the cigarette tax is passed later this year. Or the Governor of Idaho who says "Baw, you don't want to stay in your own business squelching climate! Come open your store here!"

Voting with your money isn't just a cliche, it happens. No, that doesn't fit into your prefab idea of turning down money because the marginal increase wouldn't be worth the work. If you're not keen on the FairTax for whatever reason that's fine, but my point and your counter-thing aren't linked.

Obligatory Actual Game Show-ish Content: Alex Trebek hosted a special a while back on the CBC: Canada's Next Great Prime Minister. It was neat, and topics like this were discussed at length.

[clemon79]

[quote name=\'TLEberle\' post=\'239388\' date=\'Apr 12 2010, 11:43 PM\']No, that doesn't fit into your prefab idea of turning down money because the marginal increase wouldn't be worth the work. If you're not keen on the FairTax for whatever reason that's fine, but my point and your counter-thing aren't linked.[/quote]
Except that's exactly what you said ("rather than be taxed on my earnings"), but I know that attempting to have this argument will accomplish precisely nothing, so instead I shall doff my cap and wish you a respectful good evening.

[TLEberle]

[quote name=\'clemon79\' post=\'239390\' date=\'Apr 12 2010, 11:52 PM\'][quote name=\'TLEberle\' post=\'239388\' date=\'Apr 12 2010, 11:43 PM\']No, that doesn't fit into your prefab idea of turning down money because the marginal increase wouldn't be worth the work. If you're not keen on the FairTax for whatever reason that's fine, but my point and your counter-thing aren't linked.[/quote]Except that's exactly what you said ("rather than be taxed on my earnings"), but I know that attempting to have this argument will accomplish precisely nothing, so instead I shall doff my cap and wish you a respectful good evening.
[/quote]I'm terribly sorry you misunderstood my comment. I would prefer to be taxed on what I spend than what I earn, given the rate for each. I would also rather be taxed at 5% than 25%, given the choice.

[Joe Mello]

[quote name=\'TLEberle\' post=\'239392\' date=\'Apr 13 2010, 02:55 AM\']I would prefer to be taxed on what I spend than what I earn, given the rate for each. I would also rather be taxed at 5% than 25%, given the choice.[/quote]
That's fine, and maybe even a good idea, but the initial logic behind it was off.  Assuming you are not your own boss, you can control your salary/wage about as well as you can control the price of goods.

[tvrandywest]

Whenever this recurring topic returns I never see mention of the fact that there was once an IRS provision that helped us game show winners - - - Schedule G which provided for Income Averaging. A particularly good year could be averaged over a 5 year period to mitigate the massive hit tax hit. I'm not sure when it disappeared, but I used Schedule G in the mid 1980s.

Randy
tvrandywest.com

[GiraffeBoy]

[quote name=\'tvrandywest\' post=\'239422\' date=\'Apr 13 2010, 09:59 AM\']Whenever this recurring topic returns I never see mention of the fact that there was once an IRS provision that helped us game show winners - - - Schedule G which provided for Income Averaging. A particularly good year could be averaged over a 5 year period to mitigate the massive hit tax hit. I'm not sure when it disappeared, but I used Schedule G in the mid 1980s.[/quote]
It hasn't really disappeared.  It's now known as Form 990, which applies to fundraising and gaming (bingo, pull-tab games, and the like), though not game shows anymore.

--Charlie

[Steve McClellan]

[quote name=\'GiraffeBoy\' post=\'239754\' date=\'Apr 20 2010, 12:59 AM\']It hasn't really disappeared.  It's now known as Form 990, which applies to fundraising and gaming (bingo, pull-tab games, and the like), though not game shows anymore.[/quote]

Erm, Form 990 is "Return of Organization Exempt From Income Tax".

[GiraffeBoy]

[quote name=\'Steve McClellan\' post=\'239755\' date=\'Apr 20 2010, 12:11 AM\'][quote name=\'GiraffeBoy\' post=\'239754\' date=\'Apr 20 2010, 12:59 AM\']It hasn't really disappeared.  It's now known as Form 990, which applies to fundraising and gaming (bingo, pull-tab games, and the like), though not game shows anymore.[/quote]

Erm, Form 990 is "Return of Organization Exempt From Income Tax".

[/quote]

Sorry, I meant this Form 990.

--Charlie

[chris319]

I used Schedule G in the mid 1980s.

Maybe it went out with tax reform '86 when they took away the credit card interest deduction?

The fundamental flaw in this thread is that the title asks whether prizes should be tax free, but the O.P. asks whether producers should shoulder the tax burden, meaning the winnings would ostensibly still be taxable but the tax paid by someone else. Trust me, producers aren't going to shoulder any more of the costs of prizes than they have to, let alone the contestants' taxes.

[Otm Shank]

[quote name=\'GiraffeBoy\' post=\'239781\' date=\'Apr 20 2010, 08:39 PM\']Sorry, I meant this Form 990.[/quote]
Nope, strike two. Smith family get ready to steal.

That Sched G goes back to the nonprofit tax return, and it's intended to show proceeds from running games of chance (not participating in).

Game show winnings are just reported like any miscellaneous income, just as if you did freelance or contract work. Just as Rob did when he was on Lingo.

[tvrandywest]

The correct IRS Schedule G - Income Averaging was indeed eliminated as part of the 1986 Tax Reform Act.

Randy
tvrandywest.com