Why are trips and prizes won on game show taxed even though they are said to be “free”?
In: Other
Because that’d be a huge tax loophole if it weren’t taxed. My company could pay me minimum wage, and then give me “prizes” instead of a salary. I’d love it because I wouldn’t need to pay income tax on it. They’d love it because they could afford to pay me less (since I’m getting less taken away from the government). The government wouldn’t get any money.
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