Posted on 08/01/2012 8:14:30 PM PDT by SeekAndFind
Sen. Marco Rubio introduced a bill Wednesday to eliminate the federal government’s 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 shouldn’t 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 shouldn’t 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 ...
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.
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