We have relatively low income taxes (Oh, I can hear the screaming now...) so they got to get it from somewhere.
But there are ways of getting out of paying them sometimes. My parents won a car 12 years ago playing bingo at an Indian casino. Since they gambled so much they were able to claim a loss in the amount of the car so they didn't have to pay any federal taxes on it. (BTW, they were audited for that year so brought many boxes of bingo receipts to the IRS office to prove their losses) They had to pay taxes to the state, though.
They gave the car to me!
I just heard the story in BOL399 about the guy who could not take his trip to space prize because he was not able to pay the taxes.
Ha??? What do you mean pay a tax on a prize won? Is the US government so hard up for revenue that it has to tax prize winnings?
As an avid space nut I can feel this guy's pain. For me winning this prize would be the best thing in the world.
In Australia revenue or benefits gained from "windfall gains" (e.g. winning a lottery, winning a prize on a TV show, or a trip to space, etc) are not taxable.
The only way that any tax would be paid would be if you invested your winnings (e.g. $100,000 lottery prize) and earn interest or made captial gains.
Interestingly there was a case of a person having to pay tax on game show winnings because this person was a regular game show contestant and the tax office deemed that the money was actually income from the job of being a professional game show contestant.