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December 24, 2004

Stinginess from the IRS.

As if payroll taxes weren't enough-- here is an example of the IRS almost literally whisking the Christmas turkery from the table-tops of hard-working Americans. According to Brian Hindo of Business Week, many companies used to hand out turkeys this time of year. Now, however, 41% give out coupons, which can be redeemed at any store for a turkey or a tofu turkey or whatever suits the employee's fancy.

Sensing a little possibility for happiness, the IRS immediately put its best and brightest bureaucrats on the job. Heaven forbid an employee use that coupon to purchase a tub of Whip Cream rather than a fine-feathered friend. The result? The judgement that gift certificates, unlike actual turkeys, are a cash equivalent-- and therefore taxable. Hindo profers poetic injustice by noting that those 50-yard-line NFL seats for executives are still tax-exempt. Ho. Ho. Ho.

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