Reporting Tim Kephart
MIAMI (CBSMiami) – As American athletes are giving their all to win medals at the 2012 Olympics, Uncle Sam will have a little bill waiting on them when they return stateside.
For years, Olympic medal winners have had to pay taxes on their winnings that go along with taking a gold, silver, or bronze medal. Olympic athletes who win a medal receive cash payments of $25,000 for gold, $15,000 for silver, and $10,000 for bronze.
Much like any other gift or winning, there are taxes that must be paid for the amount the athletes received. For example, in 2008 when swimmer Michael Phelps won eight gold medals, he won $200,000 in cash as well. So he paid taxes on the $200,000 he won.
That may no longer be the case.
U.S. Senator Marco Rubio introduced “The Olympic Tax Elimination Act” on Wednesday to exempt U.S. medal winners from paying taxes on the winnings they receive.
“Our tax code is a complicated and burdensome mess that too often punishes success, and the tax imposed on Olympic medal winners is a classic example of this madness,” said Rubio. “Athletes representing our nation overseas in the Olympics shouldn’t have to worry about an extra tax bill waiting for them back home.”
For more on the bill, click here.