With U.S. Olympic medals piling up in London, a Republican senator yesterday proposed to do away with the tax imposed on those athletes for each win.
Senator Marco Rubio, R-Fla., introduced the bill to exempt Olympic medal winners from owing tax on their winnings and called the tax “ridiculous.” He said it serves to punish dedicated athletes for achieving excellence.
Olympians are taxed on the honorariums they receive for each win and on the value of their medals. The values of both are added to their taxable income and are subject to a top tax rate of 35%.
The cash payments equal $25,000 for gold, $15,000 for silver and $10,000 for bronze.
“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,” Mr. Rubio said. “Athletes representing our nation overseas in the Olympics shouldn't have to worry about an extra tax bill waiting for them back home."
Gold medal winners will owe up to $8,986, silver up to $5,385 and bronze up to $3,502, according to Americans for Tax Reform. These amounts value a gold medal at about $675, a silver medal at $385 and a bronze at less than $5.
Mr. Rubio's bill,
the Olympic Tax Elimination Act, was referred to the Committee on Finance and has no co-sponsors at this point. It would apply to medals earned after Dec. 31, 2011.
About a week into the Olympic competition, U.S. Olympians already have won a total of 31 medals, including 14 gold, 8 silver and 9 bronze; that's just under China's 32 medals, according to
NBCUniversal Inc.'s count. Competition continues in 225 events.
lskinner@investmentnews.com
