A person should not have to pay taxes on gifts, lotto winnings, or game show winnings. Amirite?
I had heard quite some time back that when Oprah gave a car to every person in her audience, that some of the people had real issues when they found out that they had to pay the taxes on the vehicles. Several of them simply could not, so when Oprah found out (I can't believe she did not know), she went ahead and paid the taxes for everyone who could not afford to do so.
My wife saw a special yesterday about people who have won money and prizes on game shows, and all of them have to pay taxes on their winnings BEFORE they can leave. If they can't pay the taxes, they do not get to keep what they won. One lady won cash and a car, so she used the cash she won to pay the taxes to keep the car! I looked up several sights today, and the percentages are insane. It just seems wrong that the government can and does step in to claim a healthy percentage of something they clearly had absolutely nothing to do with. Gifts, game shows, and the lottery are not run by the government.
I would love hearing your take on this issue.