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Winning a gold medal carries a hefty tax bill.

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So Phelps wound up owning a ton the last Olympics.

Sorry, but winning money and winning an object are two different things. But, of course, every douchebag politician has his hand out.

 

They aren't taxed on the medal. They're taxed on the $25,000 prize that the United States Olympic Committee gives them for winning.

What is wrong with the Fair Tax? It is much better than the convoluted job killing tax code we currently have...not blaming either side here...but tax code is horrible.

 

I won't argue with you for a second that the tax code is overly complicated and terribly burdensome. But I don't agree that we should get rid of progressive taxation.

I understand the idea but the problem is once you start giving passes on certain income, where do you draw the line? I was not aware of the policy but it appears Michael Phelps has made over $400,000 in these payments. Add that to his huge endoresment income and do we really want to give him tax free income? Also, winning a gold medal is great but why not let firemen have income tax free? Teachers? Policemen? Nurses? There are a host of very important positions that we could make a case for their not being taxed due to the important nature of their jobs. Not enough PR people to make up that revenue loss.

 

Agree 100%

 

However Senator Rubio (R-Fla) doesn't. He has proposed a bill to make such payments tax free for olympians. LINK

 

They aren't taxed on the medal. They're taxed on the $25,000 prize that the United States Olympic Committee gives them for winning.

 

Great point Getslow..............it's not as if they need to come up with $9,000 from scratch. If someone would give me a $25,000 prize, I will give back a part of it........though I do agree our tax code needs a complete overhaul and "dumbing down".

Where do they recieve the $25,000? Depending on the state they could have to pay state taxes too?

Where do they recieve the $25,000? Depending on the state they could have to pay state taxes too?

 

Article says the $25,000 comes from the United States Olympic Committee

Where do they recieve the $25,000? Depending on the state they could have to pay state taxes too?

 

In general, yes.

They aren't taxed on the medal. They're taxed on the $25,000 prize that the United States Olympic Committee gives them for winning.
Gotcha, I misunderstood.
Article says the $25,000 comes from the United States Olympic Committee

 

Some states have different taxes. Could be place of employment Where they live) or where the committee is based? Ask NFL players who sometimes have to pay state taxes when they travel to other cities since they are considered employed in that state.

If the medals are returned to the Olympic Committee do they still owe the taxes?

 

The US is one of the few countries that imposes its tax laws outside its borders. But we really, really need the money right now.

 

Ha our Olympians are helping moral and the economy with each medal.

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