The House Ways and Means Committee will take up legislation announced by U.S. Rep. Robert Dold (R-IL) on Monday to eliminate a tax penalty on Olympic medals and prizes.
The United States Appreciation for Olympians and Paralympians Act would exempt the value of medals and other prizes earned by Teams USA from athletes’ taxable income. The measure would retroactively apply to the 2016 Olympic and Paralympic Games.
“Our Olympic and Paralympic athletes make numerous personal sacrifices while training to represent the United States on the global stage,” Dold said. “But when they return home with a medal for Team USA, the IRS forces the athletes to pay a penalty for their success. Our bill will prevent the IRS from penalizing Team USA’s champions and ensure that our athletes can remain focused on fulfilling their Olympic dreams without fear of the tax consequences.”
The measure would only apply to medals and prizes awarded by the United States Olympic Committee and would not impact taxes on athletes’ endorsements and sponsorship deals.
U.S. Rep. Blake Farenthold (R-TX), who cosponsored the bill with Dold, said that Olympic and Paralympic athletes train for years to represent America, often earning little compensation for their efforts.
“This tax illustrates how complicated and burdensome the tax code is,” Farenthold said. “While we need to make it more fair and less burdensome for all, I think this is a good way to start. Congressman Dold and I intend to fix it.”
U.S. Rep. Kevin Brady (R-TX), the chairman of the House Ways and Means Committee, said that the committee would take up the bill in September.
“It seems like a small thing, but when America’s Olympians and Paralympians bring home the gold, our nation should congratulate them — not send the IRS to claim a share of their medal,” Brady said. “This commonsense bill has strong public support, and I’m looking forward to working with congressional leaders Bob Dold and Blake Farenthold to move it through our committee in September.”
U.S. Sens. John Thune (R-SD) and Chuck Schumer (D-NY) introduced companion legislation in the Senate that was approved earlier this year.