Winners of 'Dinner With Barack' Will Face a $560 Tax Bill
William Jacobson (Cornell) blogs the tax consequences of the Obama campaign's Dinner With Barackfundraising raffle. Three winners and their guests will receive:
- Roundtrip airfare (valued at $1,200)
- One night in a hotel ($200)
- Dinner with President Obama ($200)
The rules state that "all federal, state and local taxes associated with the receipt or use of any prize are the sole responsibility of the winner." The $1,600 is includible in each winner's income under § 74 -- at the 35% rate, that results in $560 of federal income tax. (Hat Tip: Greg McNeal.)
I think this blogger may have undervalued the dinner with obama. Recently, a group of the "correct 1%" paid $40,000 a piece to dine with barry-boy. So, this tax bill may be considerably higher.
Man, the obama campaign keeps getting funnier with each passing day.
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