TV quiz games europeen style

TV Arts

curmudgeon
In Europe you always have the choice of either the prize you have won or its 
cash value, not so in America!
I wonder why?
In Europe the tax is already paid on the prize you have won, so you do not 
have to, not so in America!
I wonder why?

"There are no enemies in science just anomalies"
                                            
zaryzary2003yahoocom
I'm not sure how it works in Europe, but generally companies pay to
have their products given away as prizes on game shows as a form of
advertising.  It's less valuable as an advertising vehicle if people
publically say "Naw, I'll just take the cash."

There have been some game shows where people had a choice of prizes,
though. Wheel of Fortune comes to mind,
                                            
curmudgeon
I'm not sure how it works in Europe, but generally companies pay to
 have their products given away as prizes on game shows as a form of
advertising.  It's less valuable as an advertising vehicle if people
 publicly say "NO, I'll just take the cash."

 There have been some game shows where people had a choice of prizes,
 though. Wheel of Fortune comes to mind,


True enough, but why is it that if you win a car you have to pay taxes on it 
in American quiz show, but you do not in an European quiz show?
                                            
Rich
If it's true (and I don't know that it is), it's simply because tax laws are 
different in different countries. Has nothing to do with television.

r
                                            
zaryzary2003yahoocom
I don't know enough about European tax law to answer that.  However,
as with all taxes, the person who writes the check to the government
isn't always the one who bears the brunt of the tax.

Here's what I mean: If I'm selling apples for $1 each, and the
government comes in and puts a 10% tax on it, the customer is really
bearing the brunt of the tax if I can just increase the price to $1.10
and still the same number of apples.  If I have to keep the price at
$1 (because that's what the market will bear), then I'm paying the
$0.10 tax.  If the price is between $1 and $1.10, then the customer
and I are splitting the cost of the tax.

Same thing with the game show.  If the prizes given to contestants are
not as good on account of the TV show having to pay the tax, then in
effect the contestant is really the one paying the tax, even though
the TV show writes the check.