American Medal Winners Set To Be Taxed By IRS

The US Olympic Committee is rewarding medal winners with honorariums starting at $25,000 for every gold medal, $15,000 for silver and $10,000 for a bronze. But, unlike athletes from other countries, the Americans face hefty tax levies of 35 percent, upon their return home from London.

If an athlete accepts the prize for a gold medal, the IRS tax levy is $8,900.  For each silver and bronze medal, the duty is $5,400 and $3,500 respectively.

Michael Phelps finished his swim races with four gold medals and two silvers, for a USOC bonus of $130,000 and a tax obligation of nearly $47,000. While Ryan Lochte earned $90,000 in Olympic honorariums and faces a tax levy from the IRS of about $32,000.

Further, if an athlete accepts an honorarium, they forfeit their NCAA eligibility and in the case of a teenager like Missy Franklin, the right to represent their high school team as well.

Memo to the Internal Revenue Service---honor our Olympic heroes, don't tax them.

Fortunately, the powers that be in Washington appear to agree with this statement

Shortly after Sen. Marco Rubio (R-FL) introduced legislation that would put an end to this practice, President Obama spoke out in support of the common sense bill.