A fine is a penalty for doing wrong, and a tax is a a penalty for doing good.
Among those who learned that were our Olympic gold medalists. Think you get handed a gold, celebrate, and go home? Not if the government gets their way. You see, because the gold medal has value (obviously,, as it’s made of gold), the government feels entitled to their share.
Sure, the revenue they bring in from taxing Olympic medals amounts to a fraction of a fraction of a fraction of a fraction of a percentage of the money the government brings in, but our leaders in Washington have never seen a tax they don’t like.
Many of America’s athletes who win Olympic gold, thus receiving a $25,000 check from the U.S. Olympic Committee, will be required to pay more than a third of that straight to the Internal Revenue Service.
For example, swimmer Michael Phelps has won three gold medals, and would be scheduled to receive $75,000.
However, since he is most likely in the top tax bracket, the IRS will claim 39.6 percent of his winnings, or about $29,000.
The so-called “victory tax” has been opposed in Congress, but so far the bill to make Olympic prizes tax free has not passed Congress.
Surprisingly, there are actually some who want to remove this tax. Liberal NY Senator Chuck Schumer, for instance, has called for an abolition of the Olympics tax earlier this month ahead of the Olympics.
Why are we punishing those who represent our country in the Olympics for their victories? I can’t think of a dumber way to reward their hard work.