The Price is Right has been a mainstay of American television for decades, garnering a strong following due to its incredibly captivating structure. The most significant part of the show is when a competitor wins a major prize, leading to thunderous applause from the audience as well as a sense of accomplishment from the winner.
Even though winning big on the show could be a dream come true for many fortunate contestants who get to go home with life-changing prizes. However, there are several drawbacks that ultimately make the entire experience seem unworthy of the excitement, leaving most of the winners in a state of dilemma.
‘The Price is Right’ winners say tax deduction made their prize very insignificant
After winning a substantial prize on the show, contestants are left with a set of complex financial responsibilities that they must navigate. One of such challenges is the imposition of taxes, which can be substantial depending on the value of the prize. Aurora, a former contestant, shared her experience on her personal blog after winning a brand-new car on an episode of The Price is Right.
While the excitement of winning a car was undeniable, she explained that she had to pay a sales tax of approximately $2,067 before she could take possession of the vehicle. Aurora is not the only victim, Sheree Heil, a school teacher who also won an Audi R8 Spyder worth $157,300 was made to pay a whooping $12,000 tax to the state of California.
USA tax laws affect game show winnings
In the United States, tax laws regarding lotteries and game prizes are notably strict, even extending to non-citizens who win on American soil, contrasting sharply with other countries such as Canada, where such winnings are referred to as ‘windfalls.’
Steven Moores, a Canadian experienced this firsthand after winning multiple prizes on the game show. His winnings included a six-night trip for two in British Columbia, an e-reader, ski wear, a fireplace, a chaise lounge, and a 2019 Fiat 500. Although looking like a notable achievement, it subjected him to a tax liability of around $12000.
