Sen. Marco Rubio To IRS: Stop Taxing Olympic Medals
U.S. Senator Marco Rubio wants the IRS to stay out of the pockets of our Olympic athletes. Rubio, rumored to be on former Gov. Mitt Romney‘s short list for vice president on the GOP ticket, has introduced legislation that would end federal income taxes on Olympic medals.
As The Inquisitr has previously reported, Olympic medalists have to fork over to the taxman nearly $9,000 for each gold medal, about $5,000 for a silver, and $3,500 for a bronze primarily based on the prize money (“honorariums”) they earn for each win. The value of the gold medal by itself is only about $675 at current commodity prices.
For athletes such as Michael Phelps who compete in high-profile events and can expect a lot of lucrative endorsement deals, or rich NBA players on the so-called Dream Team, the additional tax is probably a drop in the bucket. But for Olympians in lesser-known, one-and-done events, the tax bite could be huge.
Rubio’s bill, The Olympic Tax Elimination Act, would amend the Internal Revenue Code to give a tax break to successful Olympic athletes. It would completely eliminate the tax on Olympic medals and prize money won by U.S. athletes. A similar bill has been submitted by Republicans in the House of Representatives.
The Florida Republican senator provided this commentary on his bill to end tax collections on Olympic medals:
Our 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. Athletes representing our nation overseas in the Olympics shouldn’t have to worry about an extra tax bill waiting for them back home.
We need a fundamental overhaul of our tax code, but we shouldn’t wait any time we have a chance to aggressively fix ridiculous tax laws like this tax on Olympians’ medals and prize money. We can all agree that these Olympians who dedicate their lives to athletic excellence should not be punished when they achieve it.
If the Marco Rubio bill to end taxes on Olympic medals is enacted into law, the gross income of Olympic athletes “shall not include the value of any prize or award won by the taxpayer in athletic competition in the Olympic Games.” This proposed law would apply to prizes and awards received after December 31, 2011, so it would cover the 2012 London Olympics.
Taxing Olympic medals is unprecedented around the world, according to American for Tax Reform, the organization that originally broke the story about how much the athletes have to pay the IRS for winning medals.
It gets even worse. Not only do our Olympic athletes have to pay taxes on their medals and prizes – chances are their competitors on the field will face no such taxation when they get home. Because the U.S. is virtually the only developed nation that taxes “worldwide” income earned overseas by its taxpayers, our Olympic athletes face a competitive disadvantage that has nothing to do with sports.
Do you think it is fair for the IRS to go after Olympic medalists?
Tags : 2102 London Olympics, federal income tax, IRS, Marco Rubio, Marco Rubio legslation end taxing medals, Mitt Romney, olympic medal prize money, Olympic medal prize money taxes, taxes on olympic medals
Posted: August 2, 2012
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Aug 2, 2012
Are you kidding me? This story is incredibly irresponsible. You make it sound as though the athletes are being taxed on the weight value or the intrinsic value of the medals. They're not! American gold medalists are awarded $25,000 from the USOC. They're taxed on that money (all prize money in the U.S. is taxed). So if they're taxed around $9,000 on that prize money, they still come away $16,000 richer than they were before. Not bad considering that most countries don't pay their athletes anything for winning medals. Stop spinning this story by leaving out key facts. It's sickening.
Aug 2, 2012
Irresponsible spin is the MO of the GOP right now. Vote 'em all out.
Aug 2, 2012
I agree.. however, they won the money over seas so I feel like they shouldn't be taxed on it.
Aug 2, 2012
So Vincent, if the next Olympics is held on US soil those athletes should be taxed?
Aug 2, 2012
Obama loves to stick it to the rich… Ok Athletes… Welcome to the world of Obama's rich! And now it is time to have it stuck to you! It is amazing how many new unsuspecting people are going to be considered rich and need to pay that little extra to fund the Obamanation…
Aug 2, 2012
hear hear gordy. true enough. athletes are not taxed on the value of the ideal — they're taxed on the bonus received by the US Olympic Committee – which is hard cash. Everyone pays taxes — except Romney!
Aug 2, 2012
Obama didn't create this law. It's been around a long time. But I like how the GOP is willing to take any little thing and twist it into anti Obama rhetoric. Congrats. You're a GOP troll.Have fun spreading lies. That's why we're voting your party out.
Aug 2, 2012
He's just posturing for the bid for VP candidate. Besides, that prize money is not even a drop in the bucket compared to how much the athletes and their families have spent over their lifetime on training to be that caliber of an athlete.
Aug 2, 2012
A Secret Deal to End the Tax War:
Romney and Rubio Prove They Have a Good Sense of Humor.
Olympic Medal Bill is Apparently Just a Diversion to Hide Real Tax Reform Deal.
Each year the government gives away $1.1 trillion through tax expenditures and most of the money goes to people who do not really need the help. There is only one tax plan designed to eliminate all loopholes and revive the economy in the process. It measures wealth and economic need. In 1995 half of America shared only 3.6% of the wealth. By 2010 this share was only 1.1% for a wealth gap not seen since the Great Depression of 1929.
The 2-4-8 Tax Blend lowers income tax rates to 8% by eliminating tax expenditures and replacing job killing payroll taxes with a net 2% wealth tax (excluding $15,000 cash and retirement funds). Businesses would pay the same 8% income tax rate and a 4% VAT.
Congressional representatives have been discouraged from speaking publically about the plan before the election because it is strictly a nonpartisan plan which will actually fix the economy, Social Security and Medicare without government spending. Members who have pledged to fix the economy or die trying say the reforms also comply with ATR’s bipartisan no-tax pledge. Rich, poor, Muslims, Latinos, gays, big oil companies, small manufactures, Democrats, homeowners, S corporations, women, farmers, Olympic medal winners and Catholics would all be taxed with the same very low rates.
Enjoy the rest of your day.
Eugene Patrick Devany, JD, MPA.
http://www.TaxNetWealth.com
Aug 2, 2012
They make it seem like the athletes are doing a job rather than playing games. Leave the athletes alone.
Aug 10, 2012
While most American would be willing to give our Olympians a "break" for representing the U.S. so honorably, you ought to be ashamed of yourselves for printing and promoting such deliberately skewed information. Do you even try to fact check before you write these stories? The truth is, Olympic athletes are taxed just like the rest of us, on what they earn and at the rate commensurate with their taxable income. Their accountants make sure that their tax liabilities are virtually eliminated through appropriate and allowed deductions for travel, uniforms, training, etc. The $9,000 you talk about here would apply only to those athletes making around $350,000/year or more and taking absolutely no allowed deductions for their sports expenses. Shame on you!