The L.A. Times’ Richard Simon reports on an effort by lawmakers to eliminate the fairly onerous taxes winning Olympic athletes currently face paying on their prizes.
“A gold medal winner will pay the IRS up to $8,986, according to Americans for Tax Reform Foundation, whose analysis caught lawmakers’ attention,” he writes. “Silver medal winners face a tax of up to $5,385, and bronze medal winners face a tax of up to $3,502, the group says.
But he notes that Politifact found, “Any accountant worth their salt should be able to get the rate of tax on medal winnings much below $9,000, and maybe even to zero.”
Still, some officials have put forward sound reasoning for their proposal.
“This is more about the teenage gymnast who comes home with a $10,000 tax bill, but can’t write off the cost of a personal trainer,” an aide to Congresswoman Mary Bono Mack said.