If a proposed bill becomes law, U.S. Olympic athletes could get a tax benefit worth thousands of dollars on their winnings.
U.S. Sen. Marco Rubio, R-Fl., and U.S. Rep. Aaron Schock, R-Ill., proposed The Olympic Tax Elimination Act, which would eliminate federal taxes on any honorariums and medals earned by Olympic athletes. A spokesman for Pres. Barack Obama said he supports the idea.
So how much would top athletes save? Americans for Tax Reform, a tax advocacy group that pushes for a single, flat income tax, estimated that gold medalists could face a $9,000 tax burden. Silver medalists would have to pay $5,400, according to the analysis while those awarded bronze medals paid $3,500.
The calculations are based on the top income tax rate of 35 percent and the market value of the medals: $675 for gold, $385 for silver and $5 for bronze, according to the group. Honorariums for gold, silver and bronze medal athletes are $25,000, $15,000 and $10,000, respectively. The calculated tax burdens don’t include income athletes may receive from endorsements or other endeavors.
Read more about the analysis on ATR’s website here.
Photo: Westchester County native Brigetta Barrett celebrates her silver medal win in the high jump at the 2012 Olympics in London. (Christopher Hanewinckel/USA TODAY Sports)