The Jee3 Share the Wealth Plan
TV ClubHouse: ARCHIVES: Big Brother USA 2003 General Discussions Part 1:
The Jee3 Share the Wealth Plan
What555456 | Friday, August 15, 2003 - 11:54 am     Yes, I still think they have their agreement to share the $500,000, with $50,000 going to each of the two who do not win. I see no way that BB can stop it, even if they can get Jee3 to say it no longer is operable. But they really are not very good businessmen. I am sure they decided on $50,000 because that would be 10% to two of them and 80% to the winner. What they failed to include is that the winner pays ALL of the taxes (Do you think the other two will declare the income? Get real!) So, this is how it breaks down. The winner gets a check for $500,000. Assuming at this level of income, the federal taxes will be in the 35% range. The winner now has $325,000. Because the payment is earned in California, it is subject to California income tax. It will be at the maximum tax rate of 9.3% That is $46,500. So, the winner is now down to $278,500. Depending on how the winner's home state considers this, he will also be liable for that State's income tax.(Most states do not care where you earned the money if you are a resident, they want their taxes). If it is Robert, he has no problem, because he lives in CA. If it is Jee, he needs to pay 6.85%. This is $34,450. His after tax net is $244.050. If it is Justin, he needs to pay Pensylvania income tax of 2.8% 0r $14,000. His after tax net is $264,500. After all of this, the winner then needs to pay the other two $50,000 each, for a total of $100,000. So, if Robert wins, he nets $178,500 after giving away $100,000. If it is Jee, he nets $144,050 after giving away $100,000. If it is Justin, he nets $164,500 after givng away $100,000. No chump change, of course. But the winner hardly pockets the 80% they thought they were agree to. These guys just are not very bright. Can you imagine the fight that is going to break out once the winner realizes how much he has lost in taxes and the other two still expect their full $50,000 each? LOL!!! Of course, they will all be famous and make lots of money from their new-found acting jobs once they are out of the house! So, it probably does not matter. |
Seanflynn2003 | Friday, August 15, 2003 - 12:11 pm     BB likely (if not certainly) has it in their contracts that they cannot do this, not right after the show, not a year later, not ever (unless marriage is involved). This would be legally enforceable, and likely includes damages to be paid to BB if they do. If not, the remaining HGs at any point could say, hey let's divide this X ways and end the show right now. |
Thorntara | Friday, August 15, 2003 - 01:39 pm     if the winner were to give the other two money, then the winner would also be subject to paying gift tax on $40,000 for each of the otheres as well. just saying |
Willsfan | Friday, August 15, 2003 - 01:51 pm     For sure it is on their contracts but how do you really think BB can enforce this? The HGs do not have to account for every penny they make or spend to anyone except IRS. The winner could decide to buy gifts for someone which could then be sold for cash. Does the contract say they can not give gifts to anyone? So if they give a member of their family 10,000 dollars and the family member gives it to one of the HGs a year or so later is that still against the rules? Wow, sounds like they would have to be watched 24/7 the rest of their lives. |
Seanflynn2003 | Friday, August 15, 2003 - 02:00 pm     Willsfan It is because there is a chance that they could get away with it that there are likely "damages" clauses in the contracts to compensate for any mischief. They might also have to agree to let BB inspect their IRS filings for a certain # of years. The point is this could jeopardize any reality show if the producers' did not have safe guards in place. They might have something in the contract allowing for gifts up to a certain value. If I were a contestant, I'd want my lawyer to get a clause in that if a fellow contestant had a major life emergency, and my money could make the difference, permission would be given if it were a circumstance that came up after the show. |
Willsfan | Friday, August 15, 2003 - 02:12 pm     I still think there's a way around it. Any attorney could probably think of a thousand ways around any clause BB has in their contract.I very much doubt BB will be interested in their activites many years later. It costs money to keep tabs on people. |
Misslibra | Friday, August 15, 2003 - 02:25 pm     Ali promised Nate a Car if she won. I guess she was feeling remorse about lying to him after all. But if I was Nate I wouldn't believe it until I saw the car and it was in my name. I think the three stooges still plan on trying to share the money. I bet they are also thinking there is a loop hole and it would be hard for BB to enforce what they do with their money. |
Seanflynn2003 | Friday, August 15, 2003 - 02:25 pm     That's why having the right to examine their IRS filings makes sense. Ex BBers agree to let BB know where they are, then have to show them on request. Not work intensive at all. |
R151996 | Friday, August 15, 2003 - 02:28 pm     Most states allow a resident tax credit for the amount of tax liability owed to another state when income was earned in the non-resident state. This usually eliminates being fully taxed by two states on the same income. |
Ryanc829 | Friday, August 15, 2003 - 02:30 pm     What a dumb idea. If I spend 3 months in that house I'm keeping all da money. |
Diacritical | Friday, August 15, 2003 - 02:41 pm     Must say... the idea that the producers can not enforce the contract is not worth much. Even without seeing their contract(s), I can about guarantee that their liability for breaking the contract will be a multiple of any prize money awarded. If the stooges are dumb enough to do this, then perhaps we'll get a better house out of the deal for next year. |
Seanflynn2003 | Friday, August 15, 2003 - 02:47 pm     Well, the defendant has to have the capital for damages to be collected. In Robert's case, the gold he is constantly digging for has no financial value/ |
Reader234 | Friday, August 15, 2003 - 03:02 pm     I could be wrong, but in the Survivor didnt the woman winner promise to give a motorcycle to the loser? Then, it was discovered against the contract, Rosie O'Donnel heard about it, and then gifted the loser with the motorcycle??? (as you can tell I'm so old brain cells are leaving at a fast rate, I get facts confused, and miss details!!) However, because of Survivor, I imagine BB may be able to have the same type of claus, but the stooges, just havent figured that out yet!! It will be interesting for us down the line!! |
Misslibra | Friday, August 15, 2003 - 03:04 pm     Reader, Ali probably knew about this that is why she promised Nate the Car she knew she wouldn't be able to give it to him. |
Diacritical | Friday, August 15, 2003 - 03:17 pm     Seanflynn -- it's worse for the stooges if they *do not* have the capital to cover damages. Their credit will be ruined, their paychecks and any tax refunds will all be garnished and they may have to go into the "grey market" where they take jobs that only pay cash off the books. Don't worry -- someone (their attorney, or Arnie's) will make it very clear that it is not in their interest to break the contract. But it's really moot -- none of them is going to win.  |
Seanflynn2003 | Friday, August 15, 2003 - 03:20 pm     The other thing is that little fry in gray areas don;t want to be up against wealthy corportations when it comes to legal matters |
Xarph | Friday, August 15, 2003 - 03:30 pm     It looks the real winner in any prize money exchange plan will be the IRS. The Stooges might, just might, get away with the exchange if they did it with some intelligence (fat chance), but there would be a huge downside if they did get caught. |
Reader234 | Friday, August 15, 2003 - 03:32 pm     I remembered Tina Wesson was the winner I was thinking of!! (now I can go search thru some archives and see if there was any mention of it here at clubhouse!!) |
Kellirippa | Friday, August 15, 2003 - 03:37 pm     Couldn't the winner make of gift of the money to a realitive or friend of the other two? |
Ryanc829 | Friday, August 15, 2003 - 03:39 pm     Kellirippa - Hypothetically yes but if it ever came in front of a judge the judge would see it for what it was, and may say that they breached the contract anyway. |
Puzzled | Friday, August 15, 2003 - 03:39 pm     Sure, Ali can give Nate a car--a kiddy car, or an old beat-up Yugo. |
Kellirippa | Friday, August 15, 2003 - 03:40 pm     You're absolutely right Reader, I remember that too. It seems to me that when Rosie gave Colby the bike, he had already bought himself one or something, but he was thrilled non the less |
Trinity63 | Friday, August 15, 2003 - 03:41 pm     During Survivor the winner of Survivor Tina indeed did buy Colby (was that his name) a Harley. And tell me this, if any of the ex's reunited after the show, and one of them was a winner -- how could BB keep them from sharing moneies? |
Seanflynn2003 | Friday, August 15, 2003 - 03:47 pm     Trinity -- In an earlier post, I covered both of these situations. They both are reasonable points of course. 1) There is likely some level of gift-giving that is permitted (maybe up to $10,000; 2) And marriage would trump the contract |
Sisalou | Friday, August 15, 2003 - 03:48 pm     Trinity I have been wondering the same thing. How in the world could they prevent the exes from sharing if they got back together. |
Philamom | Friday, August 15, 2003 - 03:58 pm     But can these deals be enforced? Let's say Robert wins. If he decides not to give Justin and Jee any money, do they have any basis to sue him? I think if any of the three acutally do win, when they get out of the house they'll rethink it and won't give the other 2 anything. And, I'm not a lawyer, but since the deals aren't allowed by BB, they probably wouldn't have a leg to stand on. Maybe someone with more legal knowledge would know more about this than me. |
Ryanc829 | Friday, August 15, 2003 - 04:02 pm     Philamom - Any contract, verbal or otherwise, that breaks the law is null and void. Since that contract breaks the original CBS contract it effectively breaks the law. So you are correct, if the winning party decided to back out the other 2 would not be in a position to sue. |
Philamom | Friday, August 15, 2003 - 04:12 pm     Thanks Ryanc, that's what I figured. But I wasn't sure. |
Vealprince | Friday, August 15, 2003 - 04:20 pm     There are a lot of ways around this either way. From my way of thinking I would get the houseguests to sign something agreeing that deals to share money are against the rules and the penalty is forfeiture. So if anyone shares the money, they prove their own forfeiture and they can be sued for recovery of the prize. This show is about promises and lies so such a policy would give any winner all they needed to defend themselves in court against someone saying they entered into a verbal contract. And it would keep BB from having to get involved in all that messy supeona'ing of tapes, etc. |
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