It's not the medals they are taxed on, but the prize money...
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."
Come join 40ish and beyond for a Healthier you in 2012 www.cafemom.com/group/7446