Oprah Winfrey gave 276 people brand-new cars on live television. Some later discovered they could owe up to $7,000 in taxes just to keep their “free” gift.
In September 2004, Oprah opened the 19th season of her show with an enormous surprise. Her producers had filled the audience with people who genuinely needed transportation.
Each was about to receive a Pontiac G6 worth roughly $28,500.
First, Oprah brought 11 people onto the stage and gave them cars. Then she handed gift boxes to everyone else, telling them that one box contained the keys to another vehicle.
Every box had keys.
The audience screamed, cried and hugged strangers as Oprah announced that everybody was getting a car.
The entire giveaway was worth more than $7 million.
But the cars hadn't come out of Oprah's pocket. Pontiac supplied them as part of a massive promotional campaign.
And there was something the cameras hadn't explained.
Under US tax rules, the cars counted as prize income. Pontiac covered sales taxes and certain local fees, but winners remained responsible for income taxes.
Depending on their tax brackets, some faced bills approaching $7,000.
They could pay the tax, sell the car to cover it, or decline the prize.
One recipient described the situation as getting a car at a 75% discount rather than receiving one for free.
The gift was still valuable. But some of the people chosen precisely because they needed financial help now had to find thousands of dollars they hadn't planned to spend.
Two months later, Oprah held another giveaway. This time, the gifts came with checks intended to help recipients pay their taxes.
Twenty-two years later, millions still remember Oprah shouting that everybody was getting a car.
Far fewer remember the bills that arrived afterward.
@SimaInRealLife The English language call these things by name all the time, whoever came with this thing yokuthi African mustn't call body parts by names cos it's taboo did us wrong. Gwede answered correctly I also say
Justice Mathopo dealt with the IEC case properly, it’s not built on any fact but emotion. Communities must be given a chance to vote for who they want.
@MzwaneleManyi@CyrilRamaphosa@PresidencyZA Jimmy, can you by any chance compare apples with apples and not apples and bananas. It's unfair to make a comparison between Mandela nd Zuma please, they are too far apart in many ways. The whole world wud've loved to do anything for Mandela but for Zuma? I'm not sure.. so please
@sherwiebp Whoever lied to Trump that he's so important to the world pls wake him up he's still holding on to that. Leaders around the world nd the ppl of the world r just waiting for the remaining 2 nd half years so he can leave the white house so the world can be normal again. Tell him
@Saltiesunmasked Kodwa lo Lelato @Leratokganyago uhlaleleni engaka ku lomfo ambukisa ngezwe kangaka, kunini wa hlekwa uLelato yingekho ayenzile just nje indoda yimosha igama lakhe axzithulele. Muhle anga thola indoda kusasa lokusayo kodwa uzo hlukumezeka into engaziwa a bone se ku late. Abafazi
@karynmaughan I'm sure many of us wud love to do this nd help each other, the problem is the scammers. U stop nd their friends come out of nowhere nd rob you but we'll done Gert, that's the spirit
@KhuselaS How and why are you still in parliament Khusela, we've lost all trust in you after the PPE story. But we know how the ANC reward ppl like you but 4th Nov nd 2029 is not too far, what are you even talking about here
@ewnreporter@JusstAlpha She has anger issues this magogo, she's angry about or for something only she knows. Leave the organization if that's how you feel about it gogo.
@AfricaDailyZA On the podcast he repeatedly said the R30k Marawa story was "coffee" for him, meaning t'was small change.... on the other hand he's buying cars in installments like all of us. Wow, the fake life we live