Jim Glass over at The Scrivener has a tale of an insane, simply outrageously barmy, situation in taxes in the US. You need to go read it to get the full picture (and the delightful flavour of his writing) but in essence, the IRS taxes court awards and does so in a manner where the winning plaintiff can owe more in taxes than they receive in damages.
Just absurd.
Then again, in the US you also have to pay tax on gambling winnings and game show prizes. Over here all three are tax free, so however bad our system is at least it’s not that lunatic.
Insane Tax Laws.
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They not only tax game-show cash winnings but also prizes like cars and furniture, etc. I’ve read stories of people who won a car, then had to sell the car to pay the tax. Not nice at all.
I wonder how much money “Ken” from Jeopardy (who won more than $2 million in cash)owes the damned IRS? Appropriately enough, the question that finally tripped him up was tax-related! -
Remember Lord Jenkins of Claret?
One year when he was Chancellor of the Exchequer, he imposed a tax rate of over 100% on some holders of Gilts.
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