The Weekly Standard reports that American athletes winning medals at the London Olympics will owe the US Government money.
Americans who win bronze will pay a $2 tax on the medal itself. But the bronze comes with a modest prizeâ€”$10,000 as an honorarium for devoting your entire life to being the third best athlete on the planet in your chosen discipline. And the IRS will take $3,500 of that, thank you very much.
There are also prizes that accompany each medal: $25,000 for gold, $15,000 for silver, and $10,000 for bronze.
Silver medalists will owe $5,385. You win a gold? Timothy Geithner will be standing there with his hand out for $8,986. …
[M]ost other Olympians won’t pay any taxes on their medals because America is one of only a handful of countries which taxes “worldwide” prize income earned overseas.
The Politico reports that at least on Republican wants to give American athletes a break.
[Senator Marco] Rubio (R-Fla.) introduced [on Wednesday] The Olympic Tax Elimination Act, which would exempt U.S. Olympic medal winners from paying taxes on their medals. Olympians receive honorariums in the form of cash payments of $25,000 for gold, $15,000 for silver and $10,000 for bronze, which the IRS currently taxes.
â€œOur tax code is a complicated and burdensome mess that too often punishes success, and the tax imposed on Olympic medal winners is a classic example of this madness,â€ Rubio said in a statement. â€œAthletes representing our nation overseas in the Olympics shouldnâ€™t have to worry about an extra tax bill waiting for them back home.â€