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...
Rubio, Romney "and a number of Congressional lawmakers from both sides of the aisle" have a tax system that allows them the ability to pick and choose who they want to reward and who they want to punish with our existing arbitrary complex tax system.
But if you REALLY want a more fair tax system, then we need to shift the basis of taxation from EARNING MONEY over to SPENDING MONEY. Let people earn all they want to earn and only tax consumption. That way the individual... and not the government... chooses when, where and how much taxes the individual is willing to pay for the government they are paying for.
Rubio, Romney "and a number of Congressional lawmakers from both sides of the aisle" have a tax system that allows them the ability to pick and choose who they want to reward and who they want to punish with our existing arbitrary complex tax system.
But if you REALLY want a more fair tax system, then we need to shift the basis of taxation from EARNING MONEY over to SPENDING MONEY. Let people earn all they want to earn and only tax consumption. That way the individual... and not the government... chooses when, where and how much taxes the individual is willing to pay for the government they are paying for.
Thanks for the comment, CCR, but I gotta ask...Worse than what?
Worse than seizing a worker's earnings before she ever see one dime in take home pay?
Worse than baring your personal information, your privacy, your identity to some unnamed bureaucrat...as to beg the IRS for some small portion of your money back every April 15th after effectively LOANING them your money for an entire year... at ZERO interest?
Worse than having to prove your innocence to an agency that presumes you are guilty?
Worse than having a tax system that keeps tens of billions of off shore profits parked in the Cayman Islands, or in Singapore or whereever people can invest their earnings without having to pay taxes TWICE on the same earnings?
CCR: "Now the rich would have so many loopholes they would never spend a dime toward this country"
You got that right, CCR. NOW, people like Romney, Gates, Buffett, Oprah and thousands of other wealthy people keep their offshore profits... well... OFF SHORE! Because the moment they try to repatriot their AFTER TAX profits and bring that investment capital home, the IRS meets them on the dock. So you are RIGHT... they never spend those earnings here, never INVEST that capital here. If a company was completely tax free,...
Thanks for the comment, CCR, but I gotta ask...Worse than what?
Worse than seizing a worker's earnings before she ever see one dime in take home pay?
Worse than baring your personal information, your privacy, your identity to some unnamed bureaucrat...as to beg the IRS for some small portion of your money back every April 15th after effectively LOANING them your money for an entire year... at ZERO interest?
Worse than having to prove your innocence to an agency that presumes you are guilty?
Worse than having a tax system that keeps tens of billions of off shore profits parked in the Cayman Islands, or in Singapore or whereever people can invest their earnings without having to pay taxes TWICE on the same earnings?
CCR: "Now the rich would have so many loopholes they would never spend a dime toward this country"
You got that right, CCR. NOW, people like Romney, Gates, Buffett, Oprah and thousands of other wealthy people keep their offshore profits... well... OFF SHORE! Because the moment they try to repatriot their AFTER TAX profits and bring that investment capital home, the IRS meets them on the dock. So you are RIGHT... they never spend those earnings here, never INVEST that capital here. If a company was completely tax free, they could invest that capital in building new factories, because everything they build and sell globally, has NO EMBEDDED TAX component built into the production cost of ANY PRODUCT built in the U.S. This one fact would make U.S. Products very competitive in the global market. This one fact would create tens of thousands of new jobs as new start-up companies would open businesses while foriegn companies would build their next factory or plant right here in the world's tax haven.
For more information about this existing bill that is already in Congress and has almst SEVEN DOZEN BIPARISAN COSPONSORS, click http://www.fairtax.org/site/P...
And you know that for a fact? Or is it that they just haven't been caught yet?
How about Wesley Snipes? or Willie Nelson or the numerous other "rich" folks that go toe to toe with the "Success" police that punish those that are too successful in our country.
How about YOU... wouldn't you like to see April 15 and just another beautiful spring day where "the cons can no longer take advantage" of the system"???
Obviously this WAS a discussion of taxes... and if such a proposal was "fair" or not. I simply proposed an alternative that IS fair, and asked for comment.
I'm sorry you were unable to fully grasp the topic of the discussion. Have a pleasant evening. AV
And how many years did you work to become an expert at YOUR job? How much money did you spend to get your training, your degree, your experiance?
If you really wanna give these folks a break, pass the FairTax Bill that is in congress and let the tax payer choose when, where and how much taxes they want to pay... Giving government another reason to discriminate by playing one American off aginst another American is just... UN American!
FREE THE SLAVES! Pass the FairTax bill (HR-25)
THIS IS A 26 year old tax...It was made law when Republican Ronald Reagan was president. ... WHY NO OUT RAGE WHEN THE LAW WAS PASSED IN 1986. ..??
Rubio is a fake and just as usual blowing hot air. Like all cons do.
How does TRA'86...."TAX EVERYTHING"? Please explain.
Also, please comment on my alternative suggestion just above your post. Thanks AV
The tax reform passed by a Bipartisan Congress and signed by the president?
The tax reform that lowered the tax brackets for ALL wage earners with the biggest cut...over 50% (from 15% down to 7%)... for those earning the lowest wages?
The tax reform that doubled tax revenues from less than $490 billion per year when RR was sworn in to almost $1 Trillion per year when he left office due to the increased economic activity, business growth and increased jobs?
The tax reform that ELIMINATED thousands of complex loopholes enjoyed by the wealthy as they invested in tax schemes allowing them to buy sell and trade investment tax credits?
That Tax Reform?
What Reagan did was simply remove the complexity as the rich were already paying an effective rate of around 28% after spending vast sums on deductions and tax schemes that lowered their effective tax rate down to what TRA'86 mandated anyway. Yes, if you earn the gold, you pay tax on the gold. Reagain simply removed your deductions these folks used to claim while they were GOING for the gold.
And if we all buy the same $5 Million LearJet and $500,000 Rolls Royce... we would all pay the same sales tax.
And if we all buy the same USED Toyota Corolla, or the same USED Chevy pick-up, we all would pay NO sales tax as HR-25 (the FairTax Bill in congress) exempts all used goods, all investments, all tuition payments and all 'business-to-business' transactions. Only consumption of NEW goods and services are subject to the tax...
And we all take home our ENTIRE paycheck with no federal income or FICA tax removed before we see our earnings. If you want FAIR... that's Fair... http://www.fairtax.org/site/P...
If the 16th Am, is NOT repealed, then the FairTax automaticly sunsets and we revert back to the current tax code. It is in the bill NOW!
I agree w/you on the 17th as well. Thanks! AV
If you really wanna give these folks a break, pass the FairTax Bill that is in congress and let the tax payer choose when, where and how much taxes they want to pay...
Giving government just another reason to discriminate against others by playing one American off aginst another American is just... UN American!
In the Army a private E-1 with less than 2 years service makes about $1,500 a month, thats close to $18,000 a year (before tax) a specialis E-4 with 2 or more years in makes $2046 a month or $24,552 a year (before tax) a Bronze medalist makes $10,000, a Silver $15,000, and a Gold $25,000.
Most of the olympians that are going to take the money are going to make millions on endorsements so what is a few thousand from the winnings going to hurt. If you want to give them a break how about soldiers that put their lifes on the line everyday.
The money, on the other hand, is money. Maybe Rubio plans to have the medalists' taxes prepared by Romney's tax peeps during Olympic years.
I don't believe they should pay any taxes on their medals but ay endorsements or other prize money--yes. They pursued their field just like a doctor did or a farmer--and they all have to pay taxes. The difference is those groups are not competing in an international competition to be the best in their fields. Why not let them have the gift of the medal? It was by shear luck, chance, or blessing they received it in the first place. Let's honor success somewhere!!!!
Since Phelps won over 20 medals now, I wonder how much he had to pay in taxes