Skip to comments.Rubio introduces bill to eliminate federal tax on Olympic medals
Posted on 08/01/2012 8:14:30 PM PDT by SeekAndFind
Sen. Marco Rubio introduced a bill Wednesday to eliminate the federal governments tax on Olympic medals, saying the levy amounted to yet another way the government tries to punish those who succeed.
Athletes who win a gold medal also earn a $25,000 honorarium and with it an $8,986 tax bill to the IRS, according to Americans for Tax Reform, which crunched the numbers. That covers both the honorarium and the tax on the value of the gold in the medal itself.
The silver medal tax comes to $5,385, and the bronze medal tax is $3,502 including $2 for the value of the bronze medal itself, and the $10,000 honorarium.
That could leave amateur athletes in many cases still teenagers facing stiff tax bills when they return to the U.S.
Mr. Rubio said that shouldnt happen.
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, the Florida Republican said.
His bill would exempt the honorarium and the value of the Olympic medal itself from any federal taxes.
Congress is currently fighting over how to adjust the broader tax code and whether to let the Bush-era tax cuts expire. But Mr. Rubio said the Olympic winners shouldnt have to wait until lawmakers finish that job.
We can all agree that these Olympians who dedicate their lives to athletic excellence should not be punished when they achieve it, he said.
As of Wednesday evening, the U.S. had collected 12 gold medals, eight silvers and nine bronzes though a number of those were in team competitions.
(Excerpt) Read more at washingtontimes.com ...
It is not the medal, it is the cash they receive, but then again maybe he will come to the rescue of those nine guys that will set down at a poker table in Vegas in October, to play for a prize.
No probably not.
The hell with it. When it comes to stopping the feds from taxing anything and everything not nailed down, you really do gotta start somewhere. Though i wonder how many conservatives will be able to get behind him after his show of sympathy for illegals who often have no intention whatsoever of becoming citizens.
How much does it cost to WIN a Gold Medal?
Will the government allow our winning athletes to deduct gym time, weight training, medical bills as a business expense, travel and other business expenses of these athletes?
Since a number of these athletes train (or have trained) at TAXPAYER FUNDED schools and colleges, they already have received a benefit from the government.... and any scholarship money received was not taxed
Most of the US swimmers are students and/or graduates of our TAXPAYER FUNDED universities....I know quite a few swam at SEC schools (Florida and Auburn, especially). Even some of the foreign swimmers who are winning medals trained at our TAXPAYER FUNDED colleges
(Michael Phelps is one of the exceptions...he was ineligible to swim competitively at an NCAA school because he had endorsement deals before he was out of HS. He pays the Univ of Michigan to use their facilities)
Outside of the ladies gymnastics and equestrian, most of the US Olympic Athletes have spent a great deal of time training at TAXPAYER FUNDED colleges
And, I am sure Sen Rubio has zero clue that this is what really happens
How ‘democrat’ of him.
Do something MEANINGFUL! This is openly pathetic grandstanding.
I'm no tax expert by any means, but if those expenses otherwise qualify as "ordinary and necessary" business expenses under 26 U.S.C. sec. 162, I should think the answer would be yes.
There's nothing at all untoward, in principle, about an Olympic athlete's being taxed on prize monies or bonuses awarded for winning a medal. For Rubio to suggest otherwise is pandering on his part.
RE: If I publish a research paper and I receive an honorarium after it receives an award, I have to pay Federal taxes on this income.
Let’s eliminate that tax too. I’ll support it.
RE: I do not.
Everyone is equal, but some more equal than others..
Well, the late great economist Milton Friedman would disagree with you.
“I am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible.”
— Milton Friedman
RE: Since a number of these athletes train (or have trained) at TAXPAYER FUNDED schools and colleges, they already have received a benefit from the government.... and any scholarship money received was not taxed
As Obama would say then -— “You didn’t achieve that.”
You needed the government to be a great athlete ( just like the Chinese ).
Thank you Mr. Rubio... just what America needs... another protected class.
this tax “cut” is so targeted it’s like a democrat plan.
Cut taxes for a handful of people who are only affected by the the tax their winnings a few times in their lifetime.. if that.
This is a waste of time and MY money that is used to fund the beast.
What if we can show you that other countries do NOT tax income earned outside of the boundaries of that country?
Mexico comes to mind, right away!
What if we can show you that other countries SPECIFICALLY exempt Olympic prizes from their tax rates?
What if America is made less competitive due to our tax policy?
And is this not a great way to illustrate that point?
And an MBA who received taxpayer funded educational benefits, and an attorney who received taxpayer funded educational benefits, and an actor who received taxpayer funded benefits, CAN ALL DEDUCT THEIR TRAVEL AND BUSINESS AND EMPLOYMENT EXPENSES, SHOULD THEY GO TO EUROPE AND EARN MONEY!
Envy belongs in the Democrat Party.
Envy does not suit any conservative.
Good move by Rubio.
Thanks. Great points well said. We are fiddling. In Texas the Tea Party just thundered. No mSM but I think the people are getting wise and POed. In football you call them hitters— we need hitters, not rubio pro amnesty globalists!!
The honoraria is income. That being said, they should then be able to deduct their training expenses, which surely outnumbers the actual winnings.
I will vote for Palin period.