TheHill.com: House Tax writer, Keep IRS Away from Olympic Medals

[Fergasun]

TheHill.com: House Tax writer, Keep IRS Away from Olympic Medals

The House’s top tax writer is joining the team of lawmakers looking to shield U.S. Olympic medalists from being taxed on their winnings. Ways and Means Chairman Dave Camp (R-Mich.) said in a Friday statement that ensuring the IRS keeps away from the honorariums won by medalists was just one way to show appreciation to U.S. athletes. “Allowing our Olympians to receive and enjoy their medals and awards without having to worry about whether they can pay the taxes on their accomplishment is just one small way we can show that support,” Camp said.

The flurry of action on the issue came after Grover Norquist’s Americans for Tax Reform noted that the bonuses medalists get from the U.S. Olympic Committee were taxable.

I understand the need to show appreciation for Olympic athletes, but I don't agree with this at all! What's the difference between income an Olympic athlete makes and someone else? Why should they get favorable treatment? Is their hard work better than the rest of ours? Nobel prizes are taxed; Academy awards are taxed; when the Americans for Tax Reform press release got picked up by the press and run with from various outlets; I had to roll my eyes. With sensationalist headlines like "gold will cost you ~ $9,000" which ignore the fact that nope; it's not costing you anything if they simply plan for the tax and with-hold the money.

Anyways, the net effect on the deficit is basically nil; but I don't think Olympians hard work, determination, etc. should be valued any greater than other Americans as far as tax purposes go.

[deejaydana]

It's probably more than anything an issue the GOP will take up to use as a story for an over-reaching confiscatory govt. On a related note an even sillier story was Harry Reid threatening to burn the Olympic athletes uniforms because they were made in China. We have myopic leaders across the board.

[Kosher Ham]

You don't think the sponsors will pay for this type of stuff ?

[Jumbo]

Every time I hear of one of these dumbass time-wasting chimp-posturing exercises in Congress, I want want to have all active participants (and especially the originators) taken out to the WH lawn and in full sight of network camera crews , have them publicly flogged.

All the serious **** there is to do and these bozos, "our elected representatives", spend half their time pandering to the idiot contingent of the voting population (which is vast and bipartisan, I know) with an endless parade of Chucklehead The Clown sideshow legislation.

[pjfootballer]

I say no. Most of these athletes don't receive a salary while they train or while they are at the games. I don't know how you can expect someone to come up with $9K out of the blue. It's a medal. It's not a salary.

[Brad_Edwards_Fan]

I missed the story, is it the cash bonus that they get for winning that may be taxable or is it the value of the actual physical medal?

[Burgold]

It's great political theater. Politicians can rant on this symbolically and no one will give them guff.

[Hubbs]

Apparently I'm the only one who actually thinks this might be a good idea. The difference between this and an Academy Award, or even a Nobel prize, is that Olympic athletes are specifically representing their country. And I know, I know, there's the more nebulous sense of "representing your country" that applies to those other situations, as part of the notion that when an American scientist wins a Nobel, he (or she) is "representing his country" simply by being an American. That level of representation applies to each of us whenever we interact with people from other nations. But the scientist doesn't accept his award while wearing a jacket that says "USA" on it in huge red, white, and blue letters, and our national anthem doesn't get played after he's handed his prize. So my initial reaction, at least, is that I'm okay with this.

[Burgold]

Apparently I'm the only one who actually thinks this might be a good idea. The difference between this and an Academy Award, or even a Nobel prize, is that Olympic athletes are specifically representing their country. And I know, I know, there's the more nebulous sense of "representing your country" that applies to those other situations, as part of the notion that when an American scientist wins a Nobel, he (or she) is "representing his country" simply by being an American. That level of representation applies to each of us whenever we interact with people from other nations. But the scientist doesn't accept his award while wearing a jacket that says "USA" on it in huge red, white, and blue letters, and our national anthem doesn't get played after he's handed his prize. So my initial reaction, at least, is that I'm okay with this.

If that were the case, I would suggest that members of the armed forces pay no taxes. After all, they are representing their country at great personal risk every day of their professional lives.

[RVAbrendan]

I missed the story, is it the cash bonus that they get for winning that may be taxable or is it the value of the actual physical medal?

I've read somewhere that only about 2% of the Gold medal is actually gold.

[sideshow24]

All the serious **** there is to do and these bozos, "our elected representatives", spend half their time pandering to the idiot contingent of the voting population (which is vast and bipartisan, I know) with an endless parade of Chucklehead The Clown sideshow legislation.

Not my legislation, JACK!

[Corcaigh]

This is about the cash bonus they get from the US Olympic Committee for placing in the top three in their event. Why wouldn't this be taxable?

[Brad_Edwards_Fan]

Reading things closer, i think i would be ok with their cash being taxed (of course with them being able to put the expenses related to their gold medal against the income), but i dont know that i would want to see the value of the medal taxed. They were saying there is around $600 worth of gold in the medal which doesnt generate much tax, but i wonder what some appraiser would say Phelps' 19th medal is 'really' worth. Seems way to subjective unless you were just taxing the value of the gold.

[DjTj]

Apparently I'm the only one who actually thinks this might be a good idea. The difference between this and an Academy Award, or even a Nobel prize, is that Olympic athletes are specifically representing their country. And I know, I know, there's the more nebulous sense of "representing your country" that applies to those other situations, as part of the notion that when an American scientist wins a Nobel, he (or she) is "representing his country" simply by being an American. That level of representation applies to each of us whenever we interact with people from other nations. But the scientist doesn't accept his award while wearing a jacket that says "USA" on it in huge red, white, and blue letters, and our national anthem doesn't get played after he's handed his prize. So my initial reaction, at least, is that I'm okay with this.

Should it extend beyond the Olympics? Should the World Cup team pay taxes? Should the NBA players get their FIBA World Championship money tax free? Davis Cup? Ryder Cup? World Baseball Classic?

If that were the case, I would suggest that members of the armed forces pay no taxes. After all, they are representing their country at great personal risk every day of their professional lives.

Military service members do not pay income tax for pay earned in a combat zone.

But that does raise the issue of others "representing" the country, such as diplomats or others working in embassies overseas.

The tax code just gets really complicated when you try to add in all these exemptions. But it's a great way for politicians to pull at our heartstrings and curry favor with particular constituencies.

[Hubbs]

If that were the case, I would suggest that members of the armed forces pay no taxes. After all, they are representing their country at great personal risk every day of their professional lives.

I think the logistics of exempting a couple hundred people from a specific one-time tax are a bit simpler than exempting one and a half million people (or even more if you're counting reserves and National Guard) from all federal taxes.

---------- Post added August-6th-2012 at 04:39 PM ----------

Should it extend beyond the Olympics? Should the World Cup team pay taxes? Should the NBA players get their FIBA World Championship money tax free? Davis Cup? Ryder Cup? World Baseball Classic?

I don't think I'd have a problem going either way on that one, really. I'm pretty sure that I'd be fine with considering the Olympics to be a special case, and I'm pretty sure that I'd be fine with the idea that if you win some competition in which you're specifically representing your country and not just yourself, you don't have to pay taxes on the prize.

[Burgold]

Principle vs. Symbolism, Hubbs. If you believe that it should be taxfree due to service to your country that should be the "gold" standard.

Personally, we know this is being screamed about purely for political theater and to score points. Clearly, they've had dozens of Olympics to identify and change the policy if they wanted to. I think it a bit silly myself that they are taxed, however, it is income.