Tax the Olympians?

[Magoo541]

Like BHO said, "You did't build that, someone else did."  They couldn't have done it with out the roads and bridges we built, the coaches, planes trains and automobiles, shoes, laces, goggles or Michelle sitting up in the stands cheering them on.   

The winners just made $20K + in one day, welcome to the 1% and see the tax man on your way out the door...

[Timothy]

If it is $25,000 cash it should be taxed, but if they tie a $25,000 value to the medal it is BS! 

It is true that the athletes do have sponsors, however most of that sponsorship is helping with training and travel expenses.  Are we going to tax Kim Rhode because a company gives her $25,000 worth of shotshells a year to practice with?  Are we going to tax Phelps because someone gives him $5,000 worth of airfare so he can visit his family throughout the year while he is training in remote locations?

Cash transactions are taxable, but that medal has no taxable value.  If they pawn it off, then they have a cash gain from an untaxed item and taxes are due. 

Once again, this leach we call a government has gotten out of hand.  We/they will blame the IRS, because it is the independent company named the Internal Revenue Service that is looking to wring all they can from us.  However, it is the tax code set by the legislature that the IRS is enforcing.

They currently tax the medal at it's cost to produce value of $675 bucks for a gold, less for silver and bronze.  I say let 'em have that tax free.  The bonus monies should be taxed, no question there!

Companies can give a gift of up to 12K by current IRS rules.  If the company that supports the athlete has a decent attorney, they know this and do the proper paperwork to support Ms. Rhode's shotshells.  Same with anyone else.  Since the USOC is a so-called non-profit, the support they provide could be exempt as well.

When I was going to college, it was being paid by my employer.  The reimbursement for my tuition was taxable on MY income and I assume a deduction for General Dynamics!  Not fun to come up with an additional 700 bucks in taxes that following April on a job that paid me $6.37 and hour...

The tax code is a bitch but a gold medal winner will make millions over the first years after the win!  Michael Phelps will never have to work another day in his life if he has half a brain and a good financial planner.  I'm sure that this issue isn't as important to the athletes as it is for Rubio...

[tombogan03884]

If it is $25,000 cash it should be taxed, but if they tie a $25,000 value to the medal it is BS! 

It is true that the athletes do have sponsors, however most of that sponsorship is helping with training and travel expenses.  Are we going to tax Kim Rhode because a company gives her $25,000 worth of shotshells a year to practice with?  Are we going to tax Phelps because someone gives him $5,000 worth of airfare so he can visit his family throughout the year while he is training in remote locations?

The $25 K is a cash (check, ATM, whatever ) bonus.
As for the second part of what I quoted, you would be taxed on it, why shouldn't they ?
On the other hand not all athletes get endorsement deals etc, at least one of our womens gymnastics medalists has turned down large offers.
She intends to continue competing when she goes to college and she can not do that if she has accepted money.

[Tyler Durden]

Get rid of income tax entirely.   Go with a flat sales tax.

[TAB]

1st flat tax is a joke and will never work.     2nd while at the otc, you get 100k + ++ a year in services for free as well as vouchers to pay for school.   all of which is tax free.

[Sponsor]

[tombogan03884]

1st flat tax is a joke and will never work.     2nd while at the otc, you get 100k + ++ a year in services for free as well as vouchers to pay for school.   all of which is tax free.

Flat tax is the only Constitutionally legal form of income tax

http://www.usconstitution.net/xconst_A1Sec2.html

Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers,

[MikeBjerum]

I was going to stay away from the Flat Tax drift, but with Tom's reply I will also slide us further off course:

Since income tax is the only tax that taxes your ability to pay, shifting to a flat income tax would tax everyone equally and within the limits they can afford.

The only two problems with a Flat Income Tax is that it it puts everyone on an even playing field of fairness based on ability to pay, and it does not create special classes of "need" or punish the "evil rich".  Two issues that the liberal base of this nation does not want.

[tombogan03884]

I was going to stay away from the Flat Tax drift, but with Tom's reply I will also slide us further off course:

Since income tax is the only tax that taxes your ability to pay, shifting to a flat income tax would tax everyone equally and within the limits they can afford.

The only two problems with a Flat Income Tax is that it it puts everyone on an even playing field of fairness based on ability to pay, and it does not create special classes of "need" or punish the "evil rich".  Two issues that the liberal base of this nation does not want.

There is another major flaw you missed m58.
It's simple, any one who can do basic math can figure it out, 8 for me, 2 for Uncle Sam.
CPA's would never tolerate such a thing.

[MikeBjerum]

There is another major flaw you missed m58.
It's simple, any one who can do basic math can figure it out, 8 for me, 2 for Uncle Sam.
CPA's would never tolerate such a thing.

And how many worthless jobs at the IRS would be lost?

[tombogan03884]

They would still need a couple people to open envelopes, make the bank deposits, and check names off the list.