It's just that most of the time the agency's capricious decisions don't coincide with the biggest sports media event of the year. Only the U.S. Internal Revenue Code could turn one of the most anticipated moments in sports history into a taxable event. The entire bizarre episode of taxing home run balls has had one important impact. It has turned the entire nation's attention to the absurdity of America's gift and estate tax laws. It ought to be an iron law of public policy that taxes should not discourage virtue.
Generosity is a virtue.
Go ahead and squander it on wine, women and song. But don't you dare give it away, or the taxman will be soon knocking on your door. The gift tax is particularly onerous when one considers that the giver paid tax on the income from which the gift was made. By definition, there is no monetary gain to the giver from transferring wealth or assets to a family member, a friend or someone in need. The gift tax is also fiscally inconsequential.