Americans for Tax Reform have calculated how much an American Olympic medalist will have to pay the IRS.
At today’s commodity prices, the value of a gold medal is about $675. A silver medal is worth about $385 while a bronze medal is worth under $5.
There are also prizes that accompany each medal: $25,000 for gold, $15,000 for silver, and $10,000 for bronze.
American gold medal winners will pay the IRS up to $8,986. Silver medal winners will pay up to $5,385. Bronze medal winners will pay up to $3,502.
ATR also points out an added insult in this travesty:
Not only do our Olympic athletes have to pay taxes on their medals and prizes — chances are their competitors on the field will face no such taxation when they get home. Because the U.S. is virtually the only developed nation that taxes “worldwide” income earned overseas by its taxpayers, our Olympic athletes face a competitive disadvantage that has nothing to do with sports.
Dear Team U.S.A., thank you for representing America at the Olympics, but it’s time to hand over some cash.
UPDATE: Senator Marco Rubio just introduced a bill to eliminate the tax on Olympic medals: “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. We can all agree that these Olympians who dedicate their lives to athletic excellence should not be punished when they achieve it.”