Skip to comments.Rubio introduces bill to eliminate federal tax on Olympic medals
Posted on 08/01/2012 8:14:30 PM PDT by SeekAndFind
Sen. Marco Rubio introduced a bill Wednesday to eliminate the federal governments 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 shouldnt 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 shouldnt 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 ...
Some things to consider:
* The mens relay team that won gold in the 4x200 meter freestyle event would together owe nearly $63,000 to Uncle Sam for the four swimmers in the final and the three who took part in preliminary heats.
* All told, U.S. athletes have 64 medals 27 golds, 18 silvers and 19 bronzes which comes to a tax bill of nearly $350,000.
* Swimmer Ryan Lochte, the most-decorated American athlete so far, faces a tax bill of $23,357 for his two golds and a silver.
Talk about trivial. Rome is burning Mr.Rubio!!!
I get severely “punished” every two weeks when I get paid. Where’s my tax relief?
RE: Talk about trivial. Rome is burning Mr.Rubio!!!
Baby steps my friend. If we can’t even stop a fire in one small part of Rome, how much more the entire city?
This was great strategy, on the part of Rubio.
Please tell us you are NOT in charge of any campaigns this year?
You earned your paycheck. Medals are prizes(gifts). Shouldn’t be taxed. Rubio is a douche, but im with him on this..
Just wait....the PhonyCon Rubio supporters will cheer about how “conservative Marco Rubio is for helping Olympic medal winners”
Wow...going to lower taxes for 90 or so people. That just leaves 309,999,910 at the same tax rate.
And, if any of those medal winners are Illegal Aliens....KACHING....La Raza Rubio will DREAM Act you! Woo Hoo
RE: I get severely punished every two weeks when I get paid. Wheres my tax relief?
As I see it, Rubio’s bill has little chance of passing the Senate. Not with the Dems still in the majority and Harry Reid still the majority leader.
If you want tax relief ( not only for the Olympic medal winners but for yourself as well ), we’ll need to take back both houses AND the presidency.
I see no other way.
It’s topical. Olympics and taxes. Congress is also set for their August recess.
RE: Wow...going to lower taxes for 90 or so people. That just leaves 309,999,910 at the same tax rate.
So, do you support this particular bill or not?
I KNEW O-ZERO has been raising taxes all over the place. But a tax on Olympic medals?!! How UN-AMERICAN can he get! He should be impeached.
RE: Do they tax Nobel Prize money?
FROM THIS SITE:
Pulitzer, Nobel, and similar prizes. If you were awarded a prize in recognition of accomplishments in religious, charitable, scientific, artistic, educational, literary, or civic fields, you generally must include the value of the prize in your income. However, you do not include this prize in your income if you meet all of the following requirements.
You were selected without any action on your part to enter the contest or proceeding.
You are not required to perform substantial future services as a condition for receiving the prize or award.
The prize or award is transferred by the payer directly to a governmental unit or tax-exempt charitable organization as designated by you. The following conditions apply to the transfer.
You cannot use the prize or award before it is transferred.
You should provide the designation before the prize or award is presented to prevent a disqualifying use. The designation should contain:
The purpose of the designation by making a reference to section 74(b)(3) of the Internal Revenue Code,
A description of the prize or award,
The name and address of the organization to receive the prize or award,
Your name, address, and taxpayer identification number, and
Your signature and the date signed.
In the case of an unexpected presentation, you must return the prize or award before using it (or spending, depositing, investing it, etc., in the case of money) and then prepare the statement as described in (b).
After the transfer, you should receive from the payer a written response stating when and to whom the designated amounts were transferred.
These rules do not apply to scholarship or fellowship awards. See Scholarships and fellowships, later.
Talk about trivial. Rome is burning Mr.Rubio!!!
Yes....too bad Rubio isn’t to concerned with the rest of the taxpaying public
I guess he had to do this because he is going to do his Charlie Crist impersonation for Bill Nelson....and not support Connie Mack
No KIDDING! And over the past 4 years, the punishment has gotten more severe every year!
Most of us will never win a Nobel Prize, but if we do, it comes with a tax bill. Our old friend the IRS gets a cut of the roughly $1.4 million USD ($10 million Swedish kronor) cash prize. The 2010 winners may not be complaining, but some may be surprised.
Martin Chalfie, won the 2008 Nobel Prize in Chemistry, lamenting that since the Reagan era when the tax code was changed, the IRS collects tax on prizes just like any other income.
President Obama cleverly avoided tax on his Nobel Peace Prize last yearand got great pressby regifting it. Since Jerry Seinfelds eponymous series brought regifting out of the closet, 60% of women and 40% of men admit they regift. Theres even a Gift and Re-Gifts neighborhood on eBay.
Before 1986, many prizes were tax-free as long as no significant services were involved. Since 1986, though, prizes and awards are taxable.
You can decline an award, as George C. Scott did an Academy Award for Patton in 1971. You can even decline a Nobel Prize to avoid the tax. Thats actually surprising, since the tax law routinely attributes taxable income to you constructively when you could have received a payment but chose not to.
If you are awarded a cash prize you can turn around and give it to charity but that doesnt avoid all the tax. Why? You cant deduct charitable contributions exceeding 50% of your contribution basegenerally your adjusted gross income.
The limit is even lower (30%) for gifts to certain types of organizations. You can carry over excess deductions for up to five years, but in the meantime, are paying tax on monies youve given away.
LeBron James and Kobe Bryant are going to get $10,000 each when they win their gold medals??? Really????
When did Rubio move over to the house?
Doesn’t this bill have to start there?