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It's not the medals they are taxed on, but the prize money...

Posted by on Aug. 7, 2012 at 7:33 AM
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 The Olympian are not taxed on the medals they win but the cash prize they get for winning from the Olympic association. For a Gold medal they get $25,000 in prize money, ok now that makes sense. But they are trying to make a law where they dont have to be taxed on this prize money..

Should this law go into effect, is it fair (in your opinion) that they dont pay taxes on their prize money?

Under the proposed Olympic Elimination Tax Act, Rubio is seeking to exempt medal winners from paying taxes on gold medal performances worth, for example, $25,000 for gold, $15,000 for silver and $10,000 for bronze. The USOC and several national governing bodies for individual sports pay for medals. USA Wrestling is paying up to $250,000 for a gold medal, USA Cycling $100,000.

"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," Rubio said after introducing the bill this week. "Athletes representing our nation overseas in the Olympics shouldn't have to worry about an extra tax bill waiting for them back home.

"We need a fundamental overhaul of our tax code, but we shouldn't wait any time we have a chance to aggressively fix ridiculous tax laws like this tax on Olympians' medals and prize money. We can all agree that these Olympians who dedicate their lives to athletic excellence should not be punished when they achieve it."

As for the USOC, spokesman Patrick Sandusky said, "We haven't taken a position on that."

While Rogers is not inclined to agree with Rubio for his own financial benefit, he said the proposal could legitimately help other athletes.

"I think a lot of it would depend on how much money you make," he said. "If you're an NBA player, I think you have to pay taxes on it. But if you are a track guy who makes $25,000 and he was groveling to make the Olympics, and he won a gold medal to boost his earnings to $50,000, no, don't tax that guy.

"Give him a high five and let him roll."

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by on Aug. 7, 2012 at 7:33 AM
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by on Aug. 7, 2012 at 7:45 AM

I do think they should pay taxes on it.  Its no different then winners on game shows, they have to pay taxes on their winnings. 

by Silver sister on Aug. 7, 2012 at 9:38 AM
If you win it I don't see how its fair to tax it.. but any moneys won from anything like the lotery or games shows even so although its nit fair does seem to be the law... Not a very good one though:/
by Gold sister on Aug. 7, 2012 at 10:05 AM

 No, it would not be fair if they don't have to pay taxes on prize money , yet everyone else who wins things or receives bonuses, such as regular working people, do have to pay taxes.

  This is not to say paying taxes on bonuses and prizes themselves is fair. Simply that it is impossible to levy them according to personal circumstances, alone. If that were the case, then bonuses for people who are working in, say, a minimum wage job-- "just groveling by' --shouldn't have to pay them either. Give them a high five for working and being part of the working world and let them roll. 

by on Aug. 7, 2012 at 10:09 AM

I don't think they should get taxed on money they earned.

by 40ish hang out queen on Aug. 7, 2012 at 6:00 PM

 nope not fair for them...they deserve every penny they worked their butts off to win...

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