>Good point. The government also taxes the monetary value of any goods transferred. After all, if I were to grant my car to my children upon my passing, that is income and ought to be taxed.
If you win a car on a game show, you are taxed on that just like you would be if you won money.
>But let's continue even more. Whenever my mother-in-law provides childcare, the government should tax me for the money I would have spent on daycare. After all, that's giving me something with clear monetary value. Or when I visit my friend for a free dinner, I should have to pay tax on that too.
They are providing a service and not wealth or income. We don't directly tax the reception of services. However you can make an argument that this is the equivalent of providing a service at a pay of $0. I'm not sure if it applies nationally, but I know many states make exceptions for the minimum wage when working with direct family members. We don't tax people on money they were saved from spending or the excess value they receive by underpaying their employees.
If you win a car on a game show, you are taxed on that just like you would be if you won money.
>But let's continue even more. Whenever my mother-in-law provides childcare, the government should tax me for the money I would have spent on daycare. After all, that's giving me something with clear monetary value. Or when I visit my friend for a free dinner, I should have to pay tax on that too.
They are providing a service and not wealth or income. We don't directly tax the reception of services. However you can make an argument that this is the equivalent of providing a service at a pay of $0. I'm not sure if it applies nationally, but I know many states make exceptions for the minimum wage when working with direct family members. We don't tax people on money they were saved from spending or the excess value they receive by underpaying their employees.