The taxman may cometh for celebs who grab gift bags
Filed under: Awards, Celebrities and Controversy, Politics, Oscar Watch
One of the paradoxes of Hollywood is that the more money you have, the more
companies want to give you their expensive stuff - for free. Over the past several years, the concept of
"gifting" celebs, both nominees and presenters, at awards shows, has grown to the point that it almost
eclipses the show itself. The Grammy gift baskets were worth $54,000, the Golden Globes swag worth $62,000. Each.
During Sundance, Cinematical talked with Jono, Moviefone's "swag
king", about the phenomena, and what differentiates good swag from bad.
What's in it for companies? In theory, the chance to get their product in the hands of trend-setting celebs, with the hope that when commoners (that would be us) see Gwyneth Paltrow taking a free cruise valued at $22,000, we'll somehow be inspired to do the same. I don't know about you, but hey, sure -- if a cruise is good enough for Gwynnie, heck, I'll dig that $22K out of my couch cushions and catch the next cruise out of the Port of Seatle. Or not.
The Hollywood Foreign Press Association, on the advice of their tax lawyer, decreed that no HFPA member could take the extra $62K swag bags they had left over. In an article in the New York Times, Lee Shepperd, contributing editor to the journal Tax Notes, points out that celebs may face tax implications from accepting "gift baskets", because the IRS views them not as "gifts", but as income.
The bigger moral question that begs consideration here, though, is this: do Hollywood stars, already paid in the millions for acting in films and living in mansions, really need free stuff? Some people might view the gifting of stars with swag in a negative light - both on the stars who gobble up the swag and the companies who feed them. Wouldn't a company get as much marketing weight - nay, perhaps even more - by , say, donating their stuff to people who actually need it? What if a skin care company, instead of filling gift baskets for pampered stars, donated their lotions and potions to a shelter for abused women, or went into shelters offering free facials and manicures?
What if a cruise line, instead of giving away cruises to celebs (who, reportedly, only even bother to redeem such gifts maybe 5% of the time anyhow), put those assets instead into a free cruise for families from a housing project? What if companies stopped treating Hollywood stars like a pantheon of gods, and instead treated them as no different than anyone else working for a living - or focused their swag on real heroes like police officers, firefighters, teachers, social workers. Would you think more of a company that donated its goods and services to people who actually need and would appreciate it? Or does Terrence Howard posing with his spandy new Le Vian watch make you want to rush out and buy one?












Reader Comments (Page 1 of 1)
2-17-2006 @ 7:50AM
Elliott said...
Or we could continue leaving it up to the celebrities to re-gift the freebies to charities. That way we could have another reason to hate them when they greedily keep it for themselves.
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2-17-2006 @ 10:16AM
Camron said...
The question would be if the swag could be considered income. If it is then it should be taxed. I think any star that does not want what they get should sign them and give them to a charity to auction off.
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2-20-2006 @ 8:51AM
darkbhudda said...
"Wouldn't a company get as much marketing weight - nay, perhaps even more - by , say, donating their stuff to people who actually need it?"
No. There are plenty of companies that use their "donations" as marketing. They promote themselves as "socially concious". I don't see fashion magazines with a majority pictures of poor people with manicures. Instead they are full of celebrities with all their clothing and accessories labelled with full price lists. Secondly there is a whole class of people who would be turned off by the idea. Just like there is a whole class of people who avoid companies that don't do this.
"What if a cruise line, instead of giving away cruises to celebs...put those assets instead into a free cruise for families from a housing project?"
Who would want to go on a luxury cruise with a bunch of poor people?
I can see where you are coming from though. I would prefer that Hollywood didn't spend so much on stupid advertising campaigns for their films. When the marketing budget is higher than the actual film budget there is some serious issues to be addressed.
Your ideas have merit though, we should combine them. Give poor people free luxury goods such as diamond tiaras and facials, then tax them at the end of the year. Oops, that's why "gifts" AKA charity never used to be taxed.
"The bigger moral question that begs consideration here, though, is this: do Hollywood stars, already paid in the millions for acting in films and living in mansions, really need free stuff?"
No, a bigger moral question is do *you* really need to
keep any presents you are given? Perhaps on your next birthday and Christmas you can give away all you presents to the needy?
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