{"id":222229,"date":"2016-09-23T15:26:39","date_gmt":"2016-09-23T22:26:39","guid":{"rendered":"https:\/\/www.swimmingworldmagazine.com\/news\/?p=222229"},"modified":"2016-09-23T15:26:39","modified_gmt":"2016-09-23T22:26:39","slug":"bill-to-change-tax-rules-on-olympic-medals-moves-through-congress","status":"publish","type":"post","link":"https:\/\/www.swimmingworldmagazine.com\/news\/bill-to-change-tax-rules-on-olympic-medals-moves-through-congress\/","title":{"rendered":"Bill To Change Tax Rules On Olympic Medals Moves Through Congress"},"content":{"rendered":"<p>There has been a long-standing debate on whether Olympic athletes should be taxed on their medal earnings or not with bills circulating through Congress every quadrennial.<\/p>\n<p>The most recent attempt to make Olympic athletes exempt from what is referred to as the &#8220;victory tax&#8221; was proposed by Senators\u00a0<strong>John Thune<\/strong> (R- S.D.) and\u00a0<strong>Chuck Schumer<\/strong> (D- N.Y.). The S.2650 bill, also known as the &#8220;United States Appreciation for Olympians and Paralympians Act,&#8221; was first proposed in March 2016 before reaching the Senate floor in mid-July where it passed without amendment by <a href=\"https:\/\/www.congress.gov\/bill\/114th-congress\/senate-bill\/2650\/all-actions?overview=closed#tabs\" target=\"_blank\">unanimous consent<\/a>. The bill\u00a0has experienced recent success with an <a href=\"http:\/\/clerk.house.gov\/evs\/2016\/roll546.xml\" target=\"_blank\">approval of 415-1<\/a> from the House and will now go back to the Senate.<\/p>\n<p>Currently when a U.S. Olympic athlete wins an Olympic medal they earn cash prizes from the United States Olympic Committee for the following amounts: $25,000 for gold, $15,000 for silver, and $10,000 for bronze. Since the money received is considered to be earned income, it is taxed.<\/p>\n<p>While the Senate bill would make the winnings tax-free, the House bill would only <a href=\"http:\/\/www.nytimes.com\/2016\/09\/23\/sports\/olympics\/gold-medalists-may-win-a-tax-exemption-too.html?ref=sports&amp;_r=0\" target=\"_blank\">allow the Olympic taxes<\/a> on high-profile athletes, such as\u00a0<strong>Michael Phelps<\/strong>, who earn more than $1 million a year. Additionally, the bill would be retroactively apply to those medals won during the 2016 Rio Olympics.<\/p>\n<p>Representative\u00a0<strong>Robert Dold<\/strong> (R- IL) explained to the\u00a0<em><a href=\"http:\/\/www.chicagotribune.com\/sports\/international\/ct-congress-olympics-tax-spt-20160922-story.html\" target=\"_blank\">Chicago Tribune<\/a>\u00a0<\/em>that &#8220;the vast majority of Olympic and Paralympic athletes will never sign an endorsement deal or get paid millions of dollars to compete. They&#8217;re school teachers, full-time students, retail workers and more.&#8221; Dold continued on, stating &#8220;the IRS forces our Olympic and Paralympic champions to pay a penalty for their success. Our bipartisan bill ensures that these athletes can remain focused on fulfilling their Olympic and Paralympic dreams without the fear of getting a huge tax bill in the mail.&#8221;<\/p>\n<p>Schumer added that athletes &#8220;should be worried about breaking world records&#8211;not breaking the bank&#8211;when they earn a medal. After a successful and hard-fought victory, it&#8217;s just not right for the U.S. to welcome these athletes home with a tax on that victory.&#8221;<\/p>\n<p>The only dissenting vote within the U.S. House was from Representative\u00a0<strong>Jim Himes<\/strong> (D- CT) who explained to <em><a href=\"http:\/\/www.huffingtonpost.com\/entry\/house-passes-olympic-tax-bill_us_57e44f05e4b0e28b2b53228c\" target=\"_blank\">The Huffington Post<\/a>\u00a0<\/em>that &#8220;it makes an unpaid-for carve out, is most likely to benefit the richest athletes and further complicates an already complex tax code.&#8221;<\/p>\n<p>This is not the first attempt at passing a bill to give Olympic athletes a tax break. Senator\u00a0<strong>Mark Rubio<\/strong> (R- FL) introduced a bill in 2012 to &#8220;shield medals and bonuses from Uncle Sam,&#8221; which was unsuccessful.<\/p>\n<p>Because the U.S. House passed an edited version of the bill from what the Senate passed in July, the Senate will now have to pass the House&#8217;s version before it would go to the President.<\/p>\n<p><em>More about the medal tax can be found <a href=\"http:\/\/www.usatoday.com\/story\/money\/personalfinance\/2016\/08\/15\/olympics-victory-tax-gold-medal\/88587636\/\" target=\"_blank\">here<\/a>.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There has been a long-standing debate on whether Olympic athletes should be taxed on their medal earnings or not with bills circulating through Congress every quadrennial. The most recent attempt<\/p>\n","protected":false},"author":56,"featured_media":222234,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"dois","enabled":false},"version":2}},"categories":[3,7],"tags":[58622,296,58624,58621,58625,6302,58618,58623,58619,51124,58620],"class_list":["post-222229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-usa","tag-chuck-schumer","tag-congress","tag-jim-himes","tag-john-thune","tag-mark-rubio","tag-michael-phelps","tag-olympic-medals","tag-robert-dold","tag-tax-changes","tag-u-s-house-of-representatives","tag-u-s-senate"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - 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