I disagree with Rubio's "olympic tax exemption"

Discussion in 'Clean Debate Zone' started by swizzlee, Aug 2, 2012.

  1. swizzlee
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    swizzlee RedWhiteAndBlue

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    From what I can determine, Olympic medal winners have "always" paid taxes on their cash winnings. And since they must declare this money as income, I must assume they are also able to take deductions for "occupational expenses."

    It is quite likely most end up paying no taxes at all.

    Since there is no question our current tax law is unbearably burdonsome while giving massive tax breaks to wealthy individuals and corporations, what we most need is TOTAL TAX REFORM.

    And since it is the Pubs who have been calling for tax reform [See Ryan], I'm surprised Rubio feels this law is somehow necessary.

    We do not need more tax "loopholes" and more pages added to our current 6-ft high stack of tax law. No, I cannot provide a link to my statement that our tax code stacks up 6 feet high so please don't ask :D
     
  2. flacaltenn
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    flacaltenn USMB Mod Staff Member Gold Supporting Member

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    Too early to tell WHO signs on to co-sponsor this idea.. Don't really see partisianship in the idea.

    My question is -- why are these AMATEUR atheletes getting cash rewards? It's NOT a lot of money. It's the principle of the thing. If the Prez can take time to CALL these winners personally, my feeling is -- we can excuse them from having the govt take a cut..
     
  3. swizzlee
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    swizzlee RedWhiteAndBlue

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    I've not determined what Rubio's agenda, if any, may be for writing this bill.

    Neither do I know why amateur athletes are now being paid upon winning. That's not really the concern here.

    The fact is that they ARE being taxed as they should since it's clearly income. While we all applaud their individual talents and have the deepest respect for the efforts that went into them making the Olympics, it's also true that many go on to very financially successful careers after their wins.

    I would compare this situation to the budding entrepreneur who works his ass off and invests every spare dime to start a business. Four years later after all those 80 hr weeks, he finally wins the gold and makes a profit. And Uncle Sam taxes him. Should he get an exemption?

    Both of them made choices. Sometimes you win. sometimes you lose. But when you win, the taxman is always there.

    This is nothing more than an emotional feel-good bill that only adds to the extreme clutter we call the US tax system.

    As a side note, I don't see his bill helping him in any way to nabbing the VP spot. Just the opposite, I think it shows his political youthfulness and naivete.
     
  4. hortysir
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    hortysir In Memorial of 47

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    Wasn't there a rule, at one time, that forbid Olympic athletes from profiting else they'd be stripped of their medals???
     
  5. swizzlee
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    swizzlee RedWhiteAndBlue

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    Remembering Jim Thorpe?

    Jim Thorpe Biography (Olympian/Football Player/Baseball Player) — Infoplease.com

    There was no rule about "profiting from" that I'm aware of but there was a rule that you couldn't perform an athletic event for pay BEFORE entering the Olympics.

    But now we have professionals such as hockey and basketball players that show that rule has been eliminated somewhere along the way.
     
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  6. hortysir
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    hortysir In Memorial of 47

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    Thank you for that.
    :cool:
     
  7. Vidi
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    Vidi CDZ prohibited

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    this whole issue is trumped up.

    The argument that a gold medal costs the athelete $9000 is absolute nonsense.

    First, it assumes the athelete is being taxed at the the upper income bracket of 35% which the vast majority of these atheletes wouldnt even come close to entering that bracket.

    Secondly it assumes that the atheletes will deduct NOTHING in terms of "business" expenses, which they are legally allowed to do as well. This includes training and travel costs.

    This entire thing is just bullshit political theatre.
     
  8. swizzlee
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    swizzlee RedWhiteAndBlue

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    Who's making that argument?

    What is "it"? The argument? The bill? Link to your source for figures and percents, please?

    You're not making yourself very clear here nor do I know whether you're agreeing or disagreeing with my opinion.
     
  9. FA_Q2
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    FA_Q2 Gold Member

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    This ^

    We need to desperately remove loopholes in the asinine tax code, not be adding new ones. This is particularly true in cases like this where the loophole is entirely pointless anyway. What are they trying to do?
     
  10. Desperado
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    Desperado Gold Member

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    I started the other thread on this subject and upon further review I am starting to change my opinion on this subject. First I don't think there should be any actual tax on the medals themselves.
    However, Taxing their winnings is only fair. Why should Olympic athletes go tax free?
    The point that they have deductions which will nullify the tax is well taken.
     
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