Senator Marco Rubio introduced a bill yesterday that would exempt Olympic Athletes from being taxed for earning medals at the Games. Medalists earn an honorarium depending on their medal, $25,000 for a gold down to $10,000 for a bronze medal. The amount they are taxed on also includes the value of the metals in the medals, which isn’t a whole lot as gold medals aren’t actually made of gold.
According to Senator Rubio, the average Olympic Gold Medalist will pay a tax of $8,986 on their earnings.
Senator Rubio thinks that they are being punished for success, and believes that the honorariums should be exempted.
What do you think?
I have opinions on both sides of the issue.
First, I do not agree with the senator that the athletes should be exempted because they aren’t being punished for success, they are paying taxes on earned income which is no different than any other citizen of the country. A further complicated tax code that is bloated with special circumstances isn’t necessarily a good option. If that income bumps the athlete into a specific tax bracket, I do not have any problem with them being taxed at that amount.
However, I don’t actually have a problem with the bill. I think that these athletes are representing our country on the world stage and don’t really have a problem with giving them a bonus of a tax exemption for that reason and that reason alone.
Sure, many athletes are struggling due to the slave-labor policies of the IOC, IAAF, and USATF (along with other national governing bodies in other nations.) Sponsorship is hard to come by, and sponsors that do support athletes are penalized at this time of the year for it because taking advantage of that sponsorship would lead to the athlete being disqualified from the Games. I don’t believe that a tax exemption is the solution to that problem, especially because the exemption would effect only a small percentage of the athletes competing.
What do you think? Do you suport Senator Rubio’s bill? Why or why not? Leave a comment below and let me know.
(Source: Washington Times)
“For the average Olympic Gold Medalist, they’ll pay a tax $8,986 on their earnings.”
Bullshit. This is the MOST an athlete could have to pay. Assuming they’re already making over $388,350 per year and have a retarded accountant that can’t find any offsetting expenses (equipment, travel costs, coaches, trainers, etc).
For the record it’s the same amount any of us would have to pay if we were rewarded with $25,000. Now I don’t have a problem if they want to create an exception for Olympic athletes, but it’s not like they’re exactly being unfairly penalized.
I’m going off of the amount reported in the article I read, and I agree with your statement. That was what I was trying to convey.
It is sad to see these athletes punished for winning by taxing the award. Yes, the rest of us would pay taxes for winnings, but given the fact that not ANYONE can do what they do (and they do it in the name of the UNITED STATES), it just seems wrong. Those who compete as an amateur (do not receive compensation/endorsements) do not get to take deductions for their incurred expenses. It makes a farce out of the call Phelps received from Obama. “Great job, Michael”….(and don’t forget to pay your taxes so I can keep spending more than what is budgeted!).
I don’t argue with the premise, but it’s not as if the democrats are to blame. Or the republicans. Well, let me correct myself…it’s not as if they’re the only ones to blame, heheh! Our crappy tax code is mostly at fault.