Rubio to IRS: Lay off Olympic medalists

[Renegade]

MIAMI -- Olympic athletes have enough to worry about without the IRS showing up to claim their piece of the prize.

So Sen. Marco Rubio has introduced legislation that would stop the IRS from taxing American Olympic medalists on their winnings at the games.

When an athlete wins a medal, they also receive a cash prize as part of their earnings -- $25,000 for gold, $15,000 for silver and $10,000 for bronze. All of which can be taxed by the Internal Revenue Service.

Rubio, thought to be on the short-list to be Mitt Romney's running mate, called it a "ridiculous tax law."

"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," Rubio said in a statement. "Athletes representing our nation overseas in the Olympics shouldn't have to worry about an extra tax bill waiting for them back home."

"We can all agree that these Olympians who dedicate their lives to athletic excellence should not be punished when they achieve it," Rubio added.

Rubio later used the bill to tweak President Obama over his "you didn't build that" gaffe.

"Olympic champs shouldn't have tax on medals.Unless@barackobama believes they didn't earn them,someone else did that," he tweeted.

Read more: http://politics.blogs.foxnews.com/2012/08/02/rubio-irs-lay-olympic-medalists/#ixzz22UhIb46D

"Olympic champs shouldn't have tax on medals. Unless @barackobama believes they didn't earn them, someone else did that," he tweeted.

 

[Pacioli]

I disagree with Mr Rubio (whom I like) on this issue. While we all hold our Olympic athletes in the same high regard as mom, apple pie and baseball, we should resist the urge to create another tax preference. Here's why the monetary award is taxable...

Income in general
26 USC § 61 - GROSS INCOME DEFINED
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived,...

Prizes and awards specifically
26 USC § 74 - PRIZES AND AWARDS
(a) General rule
Except as otherwise provided in this section or in section 117 (relating to qualified scholarships), gross income includes amounts received as prizes and awards.

This is the same rule that makes your grandmothers winnings on The Price is Right taxable, which you could also argue is utter bs and not get an argument from me. But let's not further complicate the code because we feel like a puppy is being kicked.

 

[Russo]

if we were talking about this 50 years ago, it would get passed no questions asked.. i don't think people in general care about the Olympics anymore.. like an exhibition nfl football game or mlb home run derby...

 

[LACamper]

You know, I used to really enjoy the Olympics. The last few times I've gotten aggravated though. There are so many sports that just don't get covered. If NBC wants the ratings for covering the Olympics they should have to give equal coverage to all of them. It also annoys me that they often skip covering the award ceremonies. Any time the US wins a medal it should be shown (yes, I know that glorifies American exceptional-ism and we can't do that) as well as the event. They would have enough time if they cut out the human interest stories (I didn't need to see Phelps mom's interview, really).

 

[Btl_Rkt_Sci]

I'd rather watch more sports than the medal ceremonies. But I know what you mean, if you work during the day, all you're going to catch is the evening coverage of swimming, gymnastics and track and field.

 

[Hitman]

You know, I used to really enjoy the Olympics. The last few times I've gotten aggravated though. There are so many sports that just don't get covered. If NBC wants the ratings for covering the Olympics they should have to give equal coverage to all of them. It also annoys me that they often skip covering the award ceremonies. Any time the US wins a medal it should be shown (yes, I know that glorifies American exceptional-ism and we can't do that) as well as the event. They would have enough time if they cut out the human interest stories (I didn't need to see Phelps mom's interview, really).

Not just that but they also aren't even wearing Red/White & Blue either. They where Grey & Black.....?

http://sports.yahoo.com/blogs/olymp...nners-wearing-gray-podium-135513669--oly.html

 

[sandman7925]

I disagree. NFL players devote their life to the sport as well and they get taxed. The amount has no bearing IMO

 

[Emperor]

I disagree with Mr Rubio (whom I like) on this issue. While we all hold our Olympic athletes in the same high regard as mom, apple pie and baseball, we should resist the urge to create another tax preference. Here's why the monetary award is taxable...

Income in general
26 USC § 61 - GROSS INCOME DEFINED
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived,...

Prizes and awards specifically
26 USC § 74 - PRIZES AND AWARDS
(a) General rule
Except as otherwise provided in this section or in section 117 (relating to qualified scholarships), gross income includes amounts received as prizes and awards.

This is the same rule that makes your grandmothers winnings on The Price is Right taxable, which you could also argue is utter bs and not get an argument from me. But let's not further complicate the code because we feel like a puppy is being kicked.

And just think; aside from the bazillions of dollars he will now make on endorsements, Michael Phelps racked up a half million dollars in wins in the last 3 games alone:

 

[TomTerrific]

Rubio is a typical politician, grandstanding on an issue he doesn't have the slightest desire to address coherently.

Income from their performances is an issue for athletes who have college eligibility left. They can't take it and compete in that sport under the NCAA.

 

[Kraut]

I'm about ready to give up on them myself. The crap they're doing with the gymnastic finalists this time has me steamed. The games used to be about competing to be the best, and if you tried for that but didn't win, you lost honorably, having taken the shot and come up short. Now, the Olympics have added an affirmative action clause to level the field to a more mediocre grade. Fu@king pathetic!

 

[JadeRaven]

I disagree with Mr Rubio (whom I like) on this issue. While we all hold our Olympic athletes in the same high regard as mom, apple pie and baseball, we should resist the urge to create another tax preference. Here's why the monetary award is taxable...

Income in general
26 USC § 61 - GROSS INCOME DEFINED
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived,...

Prizes and awards specifically
26 USC § 74 - PRIZES AND AWARDS
(a) General rule
Except as otherwise provided in this section or in section 117 (relating to qualified scholarships), gross income includes amounts received as prizes and awards.

This is the same rule that makes your grandmothers winnings on The Price is Right taxable, which you could also argue is utter bs and not get an argument from me. But let's not further complicate the code because we feel like a puppy is being kicked.

Exactly.

Taxes suck, but we shouldn't give a preference to medal winners. A cash prize is income. Now if they're going to tax the value of the medal itself (which I wouldn't put past the IRS), that would actually be ridiculous.

It would be just one more piece of garbage to carve out special people from having to pay tax while the rest of us remained burdened. Then these public figures get to naively go through life without thinking about taxes and will inevitably become liberals and push their feel-good expensive agendas on the actual taxpayers.

 

[JadeRaven]

I'm about ready to give up on them myself. The crap they're doing with the gymnastic finalists this time has me steamed. The games used to be about competing to be the best, and if you tried for that but didn't win, you lost honorably, having taken the shot and come up short. Now, the Olympics have added an affirmative action clause to level the field to a more mediocre grade. Fu@king pathetic!

??

The black girl, Douglas, who won gold was perfect. No affirmative action there. Are you talking about capping each country to two gymnasts, regardless of skill? That does suck.

 

[CEHollier]

We don't have a tax problem. We have a spending problem.

 

[fallingbird]

Not to derail the op's thread, but I paid income tax on Road Home money after I lost my house in Katrina. Just like the olympics, fair or not, but that's the way it is.

 

[Leonidas]

I thought the Olympics were for amateur athletes. Silly me.

 

[Russo]

Not to derail the op's thread, but I paid income tax on Road Home money after I lost my house in Katrina. Just like the olympics, fair or not, but that's the way it is.

you or anyone else shouldnt have gotten road home money... for the record

 

[dfsutton]

Election grandstanding.

"It is no measure of health to be well adjusted to a profoundly sick society."
- Jiddu Krishnamurti

 

[fallingbird]

you or anyone else shouldnt have gotten road home money... for the record

I paid enough taxes over the years to call in that mulligan. I rebuilt my business and kept 47 people working in the local economy, not to mention the local sales taxes collected for the parish. Maybe I should have picked up stakes and moved my business to Houston like a lot of others did.

This thread is not about that so I think we should not derail it and let it be.

 

[Trey@IG]

how do they get taxed on money they make in a different country anyway? we dont get taxed on money we make when we deploy....

 

[troy_mclure]

I got taxed my 22 months on Korea, my 4 months in haitai, my 2 months traveling thru Europe, my 65 days on the sainai peninsula.
You only get tax free status with 280 days in a hostile fire zone, for up to $80k.