Several weeks ago, Oprah gave away hundreds of new Pontiac G6 cars to all of the audience members. Pontiac agreed to pay the local sales tax and licensing fees (as well as donate the cars!)

Oprah spent nothing and got tons of press. The members of the audience? They got “free” cars. Well, not really free at all. Turns out they have to report the value of the car as income on their tax return, thus making them have to spot upwards of $7000 for their “gift”. What a travesty to those in need! A lot of these folks may not be able to afford the taxes on this gesture…

See articles at the Chicago Sun Times and NBC5.com.

An exerpt from the Chicago Sun times says:

That’s because while Pontiac agreed to pay for most of the local charges – things like state sales tax and licensing fees – the recipients have to report the cars as income once tax time comes.

By adding $28,500 to someone’s income, it can push them into a higher tax bracket – which means they will have to pay about 25 percent or more of the car’s value in taxes. And for a nearly $30,000 car, that probably means, for most of the recipients, shelling out $7,125 for the “free car.”

Via Drudgereport…