Fair Share: That $3 Chance to 'Win Dinner With The One' Will Set You Back $560 in Federal Tax Penalties
- Post 05 July 2012
- By Copy Editor
The raffles offered by the Obama campaign for dinner with the president may end up costing the winners far more than the $3 they paid to enter the contest.
In an attempt to raise funds, the Obama campaign has taken the step of being the first president in U.S. history to hold a raffle to give ordinary Americans the opportunity to meet with him.
The raffles on the Obama campaign site have asked for a minimum donation of $3 for a chance to have dinner with the president and first lady, Michelle Obama. Those who win are given an all-expense paid trip, including airfare and hotel, to spend the evening with the Obamas.
The most recent raffle dinner will take place on July 13. The campaign website says the total value of the prizes is $4,800, with each entire trip package being worth $1,600. The cost includes two round-trip coach tickets, ground transportation and a one-night stay in a hotel.
While the raffle may initially appear to be a great deal for his supporters, they may be shocked to learn the "free" dinner is anything but. Winners are on the hook for federal, state and local taxes – which could equal up to one-third the cost of the prize. ...continues...