Should U.S. Olympians Have to Pay Taxes on Their Medals and Prize Winnings? (As of Now, They Do)
SodaHead Sports
2012/08/05 22:36:18
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Last week, Senator Marco Rubio (R-Fla.) introduced a bill that would exempt U.S. Olympic medal winners from paying federal taxes on their medals and prize money. "Athletes representing our nation overseas in the Olympics shouldn't have to worry about an extra tax bill waiting for them back at home," he said in a statement.
Under the current policy, Americans winning in London will add the value of their medals (around $650 for gold, $330 for silver, and $5 for bronze) and their prize winnings ($25,000 for gold, $15,000 for silver, and $10,000 for bronze) to their taxable income. At a 35% income tax rate, medal winners will end up owing the IRS around $8,750 for a gold, $5,250 for a silver, and $3,500 for a bronze.
Romney and a number of Congressional lawmakers from both sides of the aisle have jumped to support the measure. They, and many others, are appalled that these athletes who represent the United States are being penalized for their successes. However, others argue that Olympic medalists do not merit preferential treatment.
“The fact is that prize money from athletic victories is income, and there is no good reason for the government to treat that income differently than the income of all the non-Olympic athletes who earn analogous types of income,” wrote Conor Friedersdorf for The Atlantic. “Why should Olympic athletes be exempted from paying taxes on their prize money, but not professional golfers, or poker players, or winners of literary prizes, or folks who win the lottery?”
What do you think SodaHeads? Should U.S. Olympians have to pay taxes on their medals and prize winnings?
Under the current policy, Americans winning in London will add the value of their medals (around $650 for gold, $330 for silver, and $5 for bronze) and their prize winnings ($25,000 for gold, $15,000 for silver, and $10,000 for bronze) to their taxable income. At a 35% income tax rate, medal winners will end up owing the IRS around $8,750 for a gold, $5,250 for a silver, and $3,500 for a bronze.
Romney and a number of Congressional lawmakers from both sides of the aisle have jumped to support the measure. They, and many others, are appalled that these athletes who represent the United States are being penalized for their successes. However, others argue that Olympic medalists do not merit preferential treatment.
“The fact is that prize money from athletic victories is income, and there is no good reason for the government to treat that income differently than the income of all the non-Olympic athletes who earn analogous types of income,” wrote Conor Friedersdorf for The Atlantic. “Why should Olympic athletes be exempted from paying taxes on their prize money, but not professional golfers, or poker players, or winners of literary prizes, or folks who win the lottery?”
What do you think SodaHeads? Should U.S. Olympians have to pay taxes on their medals and prize winnings?
Read More: http://www.theatlantic.com/politics/archive/2012/0...
There are a lot of situations besides the Olympics where people pay a lot of money to train or become educated or work to build a career or otherwise put out a lot of money for a shot at greatness (think rock bands, artists etc). Not all succeed. All, however, must report their earnings, whether it's prize money, paid income, inheritance or whatever. Do I think the tax system as it is right now is fair? No. But until Americans start actually paying attention to who they put in power and voting intelligently instead of who they think seems "cool", then it isn't going to change.
I feel better now. :)
As for the actual money given to them by the US Olympic committee no I do not think they should have to pay that. Endorsements on the other hand are a totally different matter and are separate from the games should be.
They are playing for our country not a private enterprise or person and in some cases have proven to be dangerous times in Olympic history in past years. Proud of the team of men and women playing for us.
Bronze $5.00
Silver $60.00
Gold $644.00
Not much to tax in the first place so unlikely the IRS will tag them for those.
This has nothing to do with libs or cons just facts that the laws were made on this however skewed they spin it.
The govt is a bottomless pit. What we give will never be enough.
It is so spent unwisely. I just goggled the outflow of what the U.S. spends to over-the-top programs - amazing!
• Punish success
• Deny exceptionalism