The IRS has their sticky fingers in every aspect of American life. They tax you for earning your money, they tax you for saving your money, they tax you for spending your money in some ways and they tax you for dying with money. The IRS also taxes you on winnings and large gifts.
My wife’s uncle lived in Barbados and some years back he won over $300,000 in a lottery. In Barbados, you keep all of your winnings in things like lotteries. In the US, the IRS will take their share before you ever see a dime and depending on your tax category, they could take up to over 40% of your winnings.
As our athletes are now competing in Sochi, Russia for gold, silver and bronze, the IRS is watching carefully, licking their greedy lips at every medal won. Why? The US Olympic Committee will pay our athletes for winning a medal. They will earn $25,000 for a gold medal, $15,000 for silver and $10,000 for bronze. For some athletes, they may only pay as little as 10%-15% of their medal winnings to the IRS, but for some professional athletes like Shawn White, they could pay as much as 33% to 39.6% of their winnings to the IRS.
That means a poor athlete who wins a gold medal will still have to pay the IRS a minimum of $2,500 in taxes. A wealthier athlete like White could pay the IRS as much as $9,900 for winning a gold medal. It doesn’t matter that technically the medals were earned abroad because the US is one of the few developed countries that tax earnings made abroad.
Americans for Tax Reform calculated the winnings and possible tax brackets for US Olympic athletes. They place many of the gold medal winners in the highest tax brackets based upon the practice of them receiving marketing endorsements, speaking requests and other paid offers during the rest of 2014.
I believe it’s shameful for our athletes to be taxed on their hard earned Olympic victories. They have trained and worked for years to represent our nation before the entire world. Efforts were made in Congress during the last Olympics to allow our athletes to keep their winnings, but the Democrats defeated it as they are more concerned about money than people. The medals they win were won with sweat, blood and sacrifice unlike anyone in the IRS has ever experienced. They should be allowed to keep what they reap without having IRS latched to their winnings like some blood sucking leech bleeding an animal of its life blood.