Race packs are bags of goodies given to children at birthday parties, but also to customers making purchases or guests at houseware parties. Celebrities receive extravagant gifts at award shows, but must now pay taxes on them. Some opt out due to ethical concerns or already high earnings.
The race pack has several definitions. Most people are familiar with those given to children at birthday parties. It can sometimes be helpful, especially with young children, to give a small bag of toys and sweets so that the child does not feel jealous of the birthday boy or girl. From this relatively innocent practice comes a wide variety of adult bags for various purposes.
Occasionally, a goodie bag is thought of as a small collection of items given to a customer making a purchase. This is especially true of cosmetic bags and is often referred to as a “free with purchase” gift. Many major cosmetic companies offer freebies to customers a few times a year to boost sales. These aren’t exactly free — people have to purchase an item from the company, normally spending $20-30 US Dollars (USD) to get the free gift. A typical gift from a cosmetics company might include a piece of makeup or purse, a lipstick sample or two, a little mascara, and a few skincare swatches.
Parties where housewares like Tupperware® are sold may also include goodie bags for guests. Sometimes just a couple of guests win a purse at a party like this. Other times, all guests get some samples or discounts on purchases to boost sales.
The purse value of cosmetics is far eclipsed by those offered to celebrity presenters at award shows and events. Many companies vie for the attention of the “stars” by offering gifts and services to reward the participants of the show. Past gifts in these over-the-top versions have included expensive jewelry, designer clothes, cell phones, Blackberries®, extended trips to luxury resorts, and gaming machines.
Until 2005, US celebrities who received rewards for gifts usually did not have to claim this on their income tax, despite receiving gifts that could be valued at more than USD 10,000. These rules changed in 2005, as the bag was not meant as a gift, but a gift that was a partial payment for participation. Some celebrities may now opt out of taking them, as the taxes on some of the “gifts” can be quite steep. Others don’t take the bag of goodies out of an ethical sense. Many celebrities feel that the last thing they need is free items, since their earnings are already plentiful.
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