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Just another govt. tax rip off!!!!

Posted by on Aug. 2, 2012 at 12:18 PM
  • 37 Replies

When Olympic medalists return to the United States, they're in high demand. Everyone, from Michael Phelps to a bronze medalist in judo will be sitting for television interviews, talking to newspapers, going to assemblies at local schools and celebrating with friends, family and young athletes. They'll also draw some unwanted interest from everyone's favorite bureaucrats: the IRS.

Medalists will have to pay hefty taxes for standing on the podium in London. It's not the value of the medal itself that will require a separate line on this years tax returns, it's the tax on the prize money that comes with a gold, silver or bronze.

[ Photos: Close-ups of Olympic medals ]

The United States Olympic Committee rewards Olympic medalists with honorariums. A gold medal brings $25,000. Silver medals get you $15,000. And a bronze is worth $10,000.

The Weekly Standard, a conservative news magazine, ran the numbers and tabulated that the tax bill on a gold is $8,986, silver is $5,385 and bronze is $3,500.

They note that Missy Franklin, an amateur who has yet to cash in on her fame with endorsements, already owes $14,000 in taxes from her gold and silver medal. By the time the Games are finished, Franklin's tax bill could reach $30,000.

[ Related: The high price of raising an Olympian ]

Come on, government. I know you're as inflexible as the IOC and couldn't decide on pizza toppings unless a bipartisan commission deliberated for 13 days, but you can't make an exception to athletes representing our country in the biggest event in the world? It's not unheard of: Military members are exempt from taxes when they're deployed in a combat zone.

UPDATE: Florida senator Marco Rubio (R) reacted to the story on Wednesday, proposing a bill that would leave athletes exempt from the federal tax. ""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," he told reporters.

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by on Aug. 2, 2012 at 12:18 PM
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Replies (1-10):
jerzeetomato
by on Aug. 2, 2012 at 1:16 PM

Complete lunacy!  These men and women train endlessly and work so hard to represent this country with honor and integrity.  Big Fail on the part of the US Government to tax their success.  Without them there would be no US Olympic team.

GertieK
by Silver Member on Aug. 3, 2012 at 8:31 AM
1 mom liked this

Shoot, the taxing has yet to begin.  You ain't seen nothin' yet. These athletes definitely deserve a break, but we have a government desparate for money right now.  They are almost to the point where they are giving to people more than they are taking in... so every bit they can get, they will grab. 

KenziesMomma25
by on Aug. 3, 2012 at 8:51 AM
5 moms liked this
Seriously? When I get a work bonus it is taxed.

Do you drive on roads? Do you play at parks? Do you have street lights? Clean water? Educate your kids?

Taxes are the price a society pays to be civilized. If you don't like them, move somewhere that doesn't have them. Like Somalia.
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atlmom2
by Susie on Aug. 3, 2012 at 9:02 AM
I know. Our taxes are going up, not down. Our state taxes wen up a few years ago.


Quoting GertieK:

Shoot, the taxing has yet to begin.  You ain't seen nothin' yet. These athletes definitely deserve a break, but we have a government desparate for money right now.  They are almost to the point where they are giving to people more than they are taking in... so every bit they can get, they will grab. 


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meriana
by on Aug. 3, 2012 at 10:01 AM

Before everyone starts yelling that the money earned at the Olympics as part of the award should not be taxed...one needs to remember that if a bill like this was written, it would likely be somewhat vague rather than stating perfectly clearly that ONLY those monies associated directly with the medal and awarded AT the Olympics would be tax free. It isn't beyond the realm of possibility that there would be ways to avoid taxation of money earned later because it was earned due to the recipient being an Olympian. Then, of course, there is the issue of other atheletes in the pro football and other pro leaques. They are often also held in high regard, earn money from endorsements, etc. but you can bet that someone would be screaming discrimination if funds earned as a result of their being an athelete weren't also tax free.

atlmom2
by Susie on Aug. 3, 2012 at 10:02 AM
Just Olympic medal earnings not taxed. Other earnings are fair game for taxing.


Quoting meriana:

Before everyone starts yelling that the money earned at the Olympics as part of the award should not be taxed...one needs to remember that if a bill like this was written, it would likely be somewhat vague rather than stating perfectly clearly that ONLY those monies associated directly with the medal and awarded AT the Olympics would be tax free. It isn't beyond the realm of possibility that there would be ways to avoid taxation of money earned later because it was earned due to the recipient being an Olympian. Then, of course, there is the issue of other atheletes in the pro football and other pro leaques. They are often also held in high regard, earn money from endorsements, etc. but you can bet that someone would be screaming discrimination if funds earned as a result of their being an athelete weren't also tax free.


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meriana
by on Aug. 3, 2012 at 10:13 AM


Quoting atlmom2:

Just Olympic medal earnings not taxed. Other earnings are fair game for taxing.


Quoting meriana:

Before everyone starts yelling that the money earned at the Olympics as part of the award should not be taxed...one needs to remember that if a bill like this was written, it would likely be somewhat vague rather than stating perfectly clearly that ONLY those monies associated directly with the medal and awarded AT the Olympics would be tax free. It isn't beyond the realm of possibility that there would be ways to avoid taxation of money earned later because it was earned due to the recipient being an Olympian. Then, of course, there is the issue of other atheletes in the pro football and other pro leaques. They are often also held in high regard, earn money from endorsements, etc. but you can bet that someone would be screaming discrimination if funds earned as a result of their being an athelete weren't also tax free.


I understand the idea however when laws are written they are rarely, if ever,  written in an iron-clad manner and leave a lot open to interpretation. Really think a whole lot of atheletes wouldn't find a way to use it to their advantage? As it is we have corporations, extremely wealthy people, celebrities of all kinds, etc. finding loopholes, etc that drastically lower their tax liability, sometimes down to zero. People win funds every day in all kinds of way and it's taxed. Start saying things like "well you won it here in this way so it's tax free" and we'll have a problem with people attempting to obtain similar designations for all kinds of things.

atlmom2
by Susie on Aug. 3, 2012 at 10:16 AM
Loopholes are that 50% don't pay any federal taxes. Make everyone pay something and stop getting big fat refunds.


Quoting meriana:



Quoting atlmom2:

Just Olympic medal earnings not taxed. Other earnings are fair game for taxing.



Quoting meriana:


Before everyone starts yelling that the money earned at the Olympics as part of the award should not be taxed...one needs to remember that if a bill like this was written, it would likely be somewhat vague rather than stating perfectly clearly that ONLY those monies associated directly with the medal and awarded AT the Olympics would be tax free. It isn't beyond the realm of possibility that there would be ways to avoid taxation of money earned later because it was earned due to the recipient being an Olympian. Then, of course, there is the issue of other atheletes in the pro football and other pro leaques. They are often also held in high regard, earn money from endorsements, etc. but you can bet that someone would be screaming discrimination if funds earned as a result of their being an athelete weren't also tax free.



I understand the idea however when laws are written they are rarely, if ever,  written in an iron-clad manner and leave a lot open to interpretation. Really think a whole lot of atheletes wouldn't find a way to use it to their advantage? As it is we have corporations, extremely wealthy people, celebrities of all kinds, etc. finding loopholes, etc that drastically lower their tax liability, sometimes down to zero. People win funds every day in all kinds of way and it's taxed. Start saying things like "well you won it here in this way so it's tax free" and we'll have a problem with people attempting to obtain similar designations for all kinds of things.


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meriana
by on Aug. 3, 2012 at 10:22 AM


Quoting atlmom2:

Loopholes are that 50% don't pay any federal taxes. Make everyone pay something and stop getting big fat refunds.


Quoting meriana:

 


Quoting atlmom2:

Just Olympic medal earnings not taxed. Other earnings are fair game for taxing.



Quoting meriana:


Before everyone starts yelling that the money earned at the Olympics as part of the award should not be taxed...one needs to remember that if a bill like this was written, it would likely be somewhat vague rather than stating perfectly clearly that ONLY those monies associated directly with the medal and awarded AT the Olympics would be tax free. It isn't beyond the realm of possibility that there would be ways to avoid taxation of money earned later because it was earned due to the recipient being an Olympian. Then, of course, there is the issue of other atheletes in the pro football and other pro leaques. They are often also held in high regard, earn money from endorsements, etc. but you can bet that someone would be screaming discrimination if funds earned as a result of their being an athelete weren't also tax free.



I understand the idea however when laws are written they are rarely, if ever,  written in an iron-clad manner and leave a lot open to interpretation. Really think a whole lot of atheletes wouldn't find a way to use it to their advantage? As it is we have corporations, extremely wealthy people, celebrities of all kinds, etc. finding loopholes, etc that drastically lower their tax liability, sometimes down to zero. People win funds every day in all kinds of way and it's taxed. Start saying things like "well you won it here in this way so it's tax free" and we'll have a problem with people attempting to obtain similar designations for all kinds of things.


If 50% don't pay taxes and a lot of them get big refunds, one also has to realize that a lot of extremely wealthy people and corporations are included in that 50%.

atlmom2
by Susie on Aug. 3, 2012 at 10:24 AM
Most is lower income. Do you know the top 25% pay 85% of taxes, federal that is.


Quoting meriana:



Quoting atlmom2:

Loopholes are that 50% don't pay any federal taxes. Make everyone pay something and stop getting big fat refunds.



Quoting meriana:


 



Quoting atlmom2:

Just Olympic medal earnings not taxed. Other earnings are fair game for taxing.




Quoting meriana:



Before everyone starts yelling that the money earned at the Olympics as part of the award should not be taxed...one needs to remember that if a bill like this was written, it would likely be somewhat vague rather than stating perfectly clearly that ONLY those monies associated directly with the medal and awarded AT the Olympics would be tax free. It isn't beyond the realm of possibility that there would be ways to avoid taxation of money earned later because it was earned due to the recipient being an Olympian. Then, of course, there is the issue of other atheletes in the pro football and other pro leaques. They are often also held in high regard, earn money from endorsements, etc. but you can bet that someone would be screaming discrimination if funds earned as a result of their being an athelete weren't also tax free.




I understand the idea however when laws are written they are rarely, if ever,  written in an iron-clad manner and leave a lot open to interpretation. Really think a whole lot of atheletes wouldn't find a way to use it to their advantage? As it is we have corporations, extremely wealthy people, celebrities of all kinds, etc. finding loopholes, etc that drastically lower their tax liability, sometimes down to zero. People win funds every day in all kinds of way and it's taxed. Start saying things like "well you won it here in this way so it's tax free" and we'll have a problem with people attempting to obtain similar designations for all kinds of things.



If 50% don't pay taxes and a lot of them get big refunds, one also has to realize that a lot of extremely wealthy people and corporations are included in that 50%.


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