Read Barack’s lips. No more “Victory Tax” for America’s finest world-class athletes.
President Barack Obama eliminated the so-called “Victory Tax” for Olympic athletes today, which means Olympians winning medals and other prizes during Olympic competition will no longer be taxed for their winnings by the IRS. Prior to Obama signing the bill eliminating the tax, any and all revenue earned from prize winnings was considered to be earned income for athletes. This will no longer be the case.
This is great news for all Olympians, but especially multi-medal winners like Michael Phelps and Katie Ledecky and so on. The united States Olympic Committee awards cash prizes ranging from $10,000 to $25,000 for medal victories. The value of the medals was also considered taxable income by the IRS.
It’s nice to see Olympic athletes no longer be taxed for their success at the Olympic games, but there is still nothing preventing the NCAA from taking a harsher stance on how Olympic income is weighed in terms of a student-athletes amateurism. Nothing Obama can do would prevent the NCAA from making a silly decision, unfortunately.
[AP]
