August 02, 2012

Rubio’s Bill would Halt Taxes on Olympic Winnings

With everyone's eyes on the Olympic Games in London, Marco Rubio (R-Fla.) has introduced a bill to waive taxes for the Olympians who take home the gold, silver or bronze medals. Besides going home with a medal Olympic athletes are given an honorarium, which before taxes is: $25,000 for gold, $15,000 for silver and $10,000 for bronze. NBC News points to an Americans for Tax Reform study that gives context to the taxes currently in place:
“So for the Fab Five gymnasts who won Tuesday in London -- McKayla Maroney, Kyla Ross, Aly Raisman, Gabby Douglas and Jordyn Wieber -- that's a total honorarium of $125,000. 
“Americans for Tax Reform… has calculated that an athlete's tax bill for winning a gold medal totals $8,936, including $8,750 based on a 35 percent tax on the honorarium, and $236 for the value of the medal. Based on that, the Fab Five would owe Uncle Sam $44,680 collectively.”