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...
YOU are sure one DESPERATE JERK (YOU LYING LIBS) to say I said things I NEVER SAID or IMPLIED.
How DESPERATE can you BE oh PATHETIC ONE?
OR is it, that YOU are JEALOUS of the ATHLETES because UNLIKE YOU (LOSER) they are doing something with THEIR LIVES (even AFTER the OLYMPICS are OVER)?
"The State", in the case of the United States has long spent more money than it had. If this were not bad enough the BHO regime blew campaign smoke up everyone's backside & upon being "elected" ran up more debt than the country has in totality prior to this Administration.
Given the impossibly high levels of debt owed by the USA & to whom it's owed our governing Regime is desperate for any type of scheme to appear as though it's making efforts to shore up out of control spending, spending leaks, security leaks, etc. nevertheless are absurd. Either the BHO Administration is a ship of fools, more likely pseudo-Communists thus seeking to get rid of business owners, land owners and otherwise wealthy people.
So in the same sense that BHO seeks 100% taxation of John Q Public's assets & thus total control of every part of our lives it only seems natural that the State would feel just in doing same to otherwise gifted athletes.
How absurd, how likely
Then provide an exemption for the athlete that enables them to:
1. amortize the cash winnings over the period of time they spent training; and
2. defer tax on precious metal prizes for the natural life of the athlete.
So, you spend 16 years training and win $16k, your tax basis is $1k per year for the next 16 years. If you earn a medal made from a marketable metal, the value of that medal at its historic value becomes taxable to your heir. Should the athlete convert the medal into any other commodity, or cash, for any reason, it becomes taxable at its current market value as of the date of conversion.
Done, done, and done.
Sorry, but I disagree.
They should pay taxes on their ensuing endorsements.
It's ridiculous that an Olympic athlete should be punished for earning a medal for their country.
But no on the medals themselves. Those are trophys, not currency.
At a 37% rate?
HELL NO!
Tax EVERYONE at 10% regardless of income no deductions!
The common sense solution is let everyone keep their medals and Olympic winnings tax-free, allowing everyone to spend whatever they choose to spend on non-deductible training expenses. I doubt any of the winners are recovering their training costs, much less any real "income".
The big money is endorsement contracts, which are taxed as ordinary income. No problem there.