Bart wakes up before the rest of the family on Cristmas morning to open his presents. Playing with a new remote control fire truck, Bart accidentally sets fire to the family's plastic Christmas tree, causing it to melt and envelop all of the family's presents. Bart drags the melted plastic-present conglomeration outside and buries it in the snow. Bart tells them that he came down early and saw a burglar stealing their presents and the tree.

After Kent Brockman reports on the Simpsons' supposed plight, the community rallies to their aid, gathering fifteen thousand dollars for them. The family buys a new car, which Homer drives into a frozen lake shortly after leaving the lot. Consumed by guilt, bat admits that there was no burlar--that he burned down the tree and the presents.

When the town finds out the truth, they're outraged. The Simpsons are shunned by the cmmunity, have their house pelted by rotten fruit, and are sent bags of hate mail. Homer decides the only solution is to pay the town back. Marge goes on "Jeopardy!" to win the fifteen thousand dollars they need to set things right, but loses miserably. When the Simpsons return home, they find their house being looted by townspeople. Having stripped the Simpsons of all their possessions save a loan washcloth, the town forgives them.