Many publications, in their heavy coverage of the 2012 Olympics in London, are missing how the Internal Revenue Service is “licking its chops” --- cheering especially for more U.S. gold medal winners --- so it can collect hefty taxes, notes Grumpy Editor.
Under U.S. tax law, winning athletes must add the value of their Olympic medals and honorariums to taxable income.
The IRS slaps a 35 percent tax rate on winners.
That’s pretty rough on some athletes who are teenagers and still going to school.
The U.S. Olympic Committee awards athletes $25,000 for gold medals, $15,000 for silver and $10,000 for bronze.
Americans for Tax Reform Foundation calculates a gold medal winner will pay the IRS up to $8,986, while silver medal winners face a tax up to $5,385 and bronze medal winners are nicked with a tax up to $3,502.
Noting this, some Washington lawmakers are coming to the rescue to exempt U.S. medal winners from paying taxes on their Olympic achievements.
Sen. Marco Rubio, (R., Fla.) last Wednesday introduced such a plan in the Senate, calling for a tax code overhaul “to aggressively fix ridiculous tax laws like this tax on Olympians’ medals and prize money.”
In the House, cosponsoring a bill seeking to exempt U.S. medal winners from paying taxes, are Reps. Mary Bono Mack (R., Calif.) and G.K. Butterfield (D., N.C.).
"Only the U.S. tax code can turn the 'thrill of victory' into the agony of victory,” they declare in a statement.