Millions of Americans are tuning in to watch our nation’s young athletes break world records and win Olympic gold in Rio.
The incredible athletes have been amazing, and have made us proud. They have trained for a lifetime, and have become the best.
The U.S. Olympic Committee gives $25,000 to every athlete who wins the gold medal (Silver medalists earn $15,000 and bronze medalists earn $10,000). But now, President Barack Obama’s Internal Revenue Service (IRS) will require those athletes to pay more than 1/3rd of their earnings in taxes!
Famous swimmer Michael Phelps, for example, has won three gold medals and will earn $75,000. But he will be forced to pay at least $29,000 in taxes to the IRS.
This is called the “victory tax” which has bi-partisan opposition in Congress. However, a bill is yet to be passed to stop this outrageous tax on our athletes.
As Senator John Thune (R-SD) explained:
“We should extend a warm welcome and congratulations – not a tax bill – to our Olympic and Paralympic champions when they return to the United States,” said Thune. “These Olympians, who often become role models for younger athletes across the country, dedicate years of their life and own money representing the United States on the world stage. The least we can do in return for these athletes’ commitment and patriotism is to allow them to keep what they’ve earned during the Olympic Games.”
“Our Olympian and Paralympic medalists should be worried about breaking world records, not breaking the bank, when they earn a medal,” said Schumer. “After a successful and hard fought victory, it’s just not right for the United States to welcome these athletes home with a victory tax. I’m hopeful that this bill will earn strong bipartisan support and quickly become law.”
What do you think about the IRS taxing our Olympic athletes? Please leave us a comment (below) and tell us.