Taxing Olympians ?
This story has been making the rounds today.
It seems that in addition to getting the medal you also receive a cash payment and those payments (and the value of the medal) are taxable income.
Now there certainly is space for debate on the actual amount of taxes owed. A some on the Huff Po have pointed out, the claimed figure of $ 9,000 in taxes on a gold medal presumes the person in the top bracket, which is unlikely for many Olympians.
Nonetheless it seems to me to be wrong to tax our Olympic athletes. Let’s not forget that many of them could be making a lot more money by going pro, but they have chosen not to do so in order to represent us.
In addition they’ve dedicated years to this effort.
Sure, you can make the same argument for a lot of professions, but I think this is one where we could cut them a break.
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What do you mean “by going pro?” Most major Olympic athletes are pro.
http://en.wikipedia.org/wiki/Olympic_Games
http://www.moneyunder30.com/how-much-do-olympic-athletes-earn-unless-youre-michael-phelps-not-enough
http://www.ehow.com/facts_7588590_much-100m-track-runners-paid.html
We’d be setting quite a precedent if we say that certain forms of income are better than others. Wait, we already do that…
But anyway, I don’t see a reason to carve out more exceptions. What about nurses and teachers and social workers? Should they pay taxes?
I think we can show our appreciation in other ways.
The value of the medal, though? That seems excessive. If someone sells one, tax them on the proceeds.
All Americans should pay taxes. We are all in this boat together. It’s the patriotic thing to do.
If they’re getting paid for what they do, they are professionals by definition. And even hairdressers dedicate years to their craft.
As for representing the USA, they are doing that, but so are tourists.
What a lovely distraction.
4.5 – 3.0 – 6.5 – 1.0
Well it appears they are part of the 50% of Americans that are going to pay taxes.
They could hire a good tax attorney and pay mothing like the other 50% of Americans that don’t pay the IRS a red cent.
Guess Obama has decided that Olympians are right wing supporters and decided they need to pay taxes before they get to the 1% level.
But it does seem like a good accountant could find costs associated with earning this award to offset the revenues.
tax them if they sell them…
They could hire a good tax attorney and pay mothing like the other 50% of Americans that don’t pay the IRS a red cent.
Many of the non-payers get refunds due to Clinton and W’s welfare reform. They’re not mitten’s cheaters, they’re the working poor getting the Earned Income tax credit.
They do not get taxed on the value of the medals they get taxed because of the cash they get when they win.
in that case EE, tax them for sure on the cash. it is kind of a no brainer in my opinion.
Get real.
@RP
Guess Obama has decided that Olympians are right wing supporters and decided they need to pay taxes before they get to the 1% level.
Athletes like Bolt, Phelps, dressage and marathon runners are in the 1%.
According to http://www.washingtonpost.com/blogs/2chambers/post/bills-would-make-olympic-medals-tax-exempt/2012/08/01/gJQA1uF8PX_blog.html
“Current U.S. tax law requires athletes to add the value of medals and honorariums to their taxable income — just as any winning game show contestant would have to pay taxes on a new car or toaster oven.”
The difference is that a new car or toaster oven is essentially a replacement for a cash prize. A medal is not given for its cash value and gives the receiver no direct economic benefit unless it is sold.
But it later suggests that the value is calculated based on commodity prices, which of course is much lower than the actual value of the medal.
I think it’s fair to tax them, at their standard rate. An athlete making millions in endorsement deals should of course make more taxes on their winnings than someone who has a lower-paying “normal” job during the off-season. Most athletes will take tax deductions on their gear and training (think Mitt’s $77K dressage horse deductions) because competing in sports is a way for the athletes to generate income. It is their job. It makes sense to pay taxes on income earned from a job, no?
That said, I had heard very different figures on the commodity value of the medals. Something like $700 for the gold, not $9K in taxes, making the value much higher.
Every dollar earned should be taxes as every other dollar earned, period.
Think about what money is: it’s a way to ensure that value of one item or service that is traded for another item or service is equal. It’s a representation of relative value of an item or service to the overall economy.
A dollar earned by a UPS delivery truck driver is equal to a dollar earned by a venture capitalist is equal to a dollar earned by an Olympic athlete.
This nonsense that “some earnings are more valuable than others” because it “adds more value” or “contributes to the public good” or “creates jobs” is pure horsesh*t. $1 = $1 = $1. All dollars are equal, all should be taxed equally.
Barky, are you arguing for a flat tax?
Look the “cash” value of a gold medal is negligible. The tax is on the 25 grand the USOC gives the winner of the gold.
Ditto, EEllis!
If the winners (Gold, Silver, Bronze) are being paid for their feats, then by all means tax those dollar (or equavalent)winnings.
Leave the medal(s) out of it! They are trophies acknowledging the feats, not necessarily ‘income.’
Are trophies awarded to golf pros for their winning tournaments? I think not. Only the money awarded for the win.
Super Bowl, World Series rings? Bonus money inherent with these venues, yes.
I could go on and on. But the point is made.