Many Americans love to watch the Olympics and I am among them. I admit that this year I have not viewed as much as I’d like to. I actually prefer the Winter Olympics with hockey, snowboarding and ski jumping. However, what most people are unaware of is that Olympians win those medals and yet, according to U.S. tax law they must add in the value of their medals and prize money to their taxable income. Yes, they get prize money as well.
The gold medals, which are mostly comprised of silver bring a nice commodity price of $675, while the silver is worth about $385 and the bronze brings in a whopping $5. But the prize money with each medal is a bit better: $25K for gold, $15K for silver, and $10K for bronze.
Now if an athelete picks up an endorsement, which many do, then the money can skyrocket exponentially.
While Obama is declaring, “You didn’t build that to business owners” and wants to claim infrastructure and other things, remember that these Olympians have trained most of their lives for these moments and when they win, they lose. They lose 35% of their winnings to Uncle Sam to build that infrastructure and prop up worthless welfare programs, but they are the ones doing it, not the government. These athletes are in essence their own business. They train and perform and are awarded by their performance just like any business.
According to Americans for Tax Reform, the break down the tax burden for American Olympians based on their performance, and by the way just to be clear, Yes Obama they did actually do it.
American medalists face a top income tax rate of 35%! As a result you see that a gold medalist bears a tax burden of nearly $9,000 per medal, a silver medalist bears a tax burden of almost $5,500 per medal and a bronze medalist has tax burden of $3,500.
So during the midst of the playing of the Star-Spangled Banner in the medal ceremonies, with hands placed over their hearts there is a reason for the tears that follow: It’s the weight of Uncle Sam’s tax burden hanging around their necks.