I know that my Senator, Marco Rubio, is crafting a bill to exempt Olympic Medals and their cash awards from taxation. I have to say that I disagree with his good intentions and propose the following in its place.
Since this meets the definition of earned income, the cash awards should be adjusted of expenses over the past 4 years [Olympiad] that have not already been used by the taxpayer athlete or family (if awardee is a dependent). Second the tax bracket should be the lowest current tax bracket in effect at the time of the cash award. Finally, the medal itself shall remain untaxed on its intrinsic value.
Yes, I am a tax preparation professional, does it show? I suggest this because I feel that there are far too many special provisions and exemptions in the current tax code. So I make this humble suggestion to reward the Olympic Winners while not increasing the tax code exemptions (much)! This keeps the awardees as tax participants rather than becoming part of the 49% tax avoiders.
My opinion on the current tax code is that it does need to be simplified ASAP. I am in favor of the “Fair Tax” or some other consumption-based tax operation but I do not expect it because too many special interests are tied to the current tax code.
They’re advertising and promoting “Team USA” for free.
To bad that bill has to start in the house....
We all pay taxes. Your senator needs to work on lowering EVERYONES taxes.