Patch Poll: Should Olympians Be Taxed for Winning?
Do you think Aly Raisman and other Olympic champions should pay tax on their medals and prize earnings?
Needham is celebrating Aly Raisman's win, and all across the U.S., the Olympic Games are a celebration of athleticism and national pride. But when Raisman and other Olympians return home with their medals, they can expect a little more than congratulations from the IRS.
According to the Huffington Post, Olympians' medals and prize money are both subject to income tax.
A gold medal, which is worth $650, according to CNN, could cost wealthier athletes in a higher tax bracket about $236 in taxes, while a bronze metal, which is worth $5, could only cost that same athlete $2 in taxes.
In addition, the U.S. Olympic Organizing Committee will award London champions $25,000 for a gold medal, $15,000 for silver and $10,000 for bringing home a bronze, Reuters reports.
Huffington Post reported that at a 35 percent income tax rate, bronze medalists will owe the IRS a total of $3,500, silver medalists will owe $5,250 and top finishers will be liable for $8,750.
What might this mean for Needham gymnast Aly Raisman, 18, who won a team gold medal as well as individual gold and bronze medals in the 2012 Olympic Games? If Raisman is in a 10 percent tax bracket, as many Olympic athletes are, that might mean paying up to $65 on the gold medal she won yesterday, and $2,500 on the $25,000 cash prize.
Speaking last week at a construction site in Framingham, U.S. Sen. Scott Brown said he didn't think these "American heroes" should be greeted back at home by the IRS. Brown said he supports a bill introduced by Sen. Marco Rubio that would exempt Olympic champions from taxes on medals and monetary prizes.
Do you think Olympians should be taxed on their medals? Their prize money? Vote in the poll below to let us know what you think in the comments section.