That $3 Dinner With Obama Might Really Raise Your tax Bill.

That $3 Dinner With Obama Might Really Raise Your tax Bill. by The Elephant's Child

June 25, 2012, 3:58 pm
Filed under: Election 2012, Humor, Law, Progressivism, Taxes | Tags: Going up by $1600, Obama's Dinner Raffle, Ordinary Taxable Income

The Obama campaign has been widely advertising “Dinner with Barack,” a raffle to win a dinner with the President. There is no charge, but a $3 contribution is suggested. The ad says “We’ll Cover Your Airfare.”

Law professor William Jacobson notes that :

Technically, such raffles are “sweepstakes” because you can enter without paying anything. This not only adds to Obama’s mailing list, it increases the number of donors and lowers the average donation, both of which figures are used in Obama’s campaign spin.

The teeny print approximates the “retail value” as $4,800.  The Obama dinner contest rules break down the retail value at $1600 per package, if airfare is included and $200 if it’s not. The IRS treats such winnings as taxable ordinary income, so you might want to be aware of what that will do to your tax bill. If you win it will cost  you more than $3.

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