Olympi-nomics: Medal Taxes Controversy and Surprising NBC Success
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on 8/4/12 at 5:30am
This has NBC feeling fantastic that they locked up the contract to show the Olympics through 2020. In addition, millions have seen promos for their new shows, shows that need help (Today), and new networks (NBC Sports).
Could the Olympics be the jump-start NBC needed?






Comments
This is just media hype.
This is just media hype.
It's pretty simple. You have income. You pay taxes on that income.
DrPeterVenkman: Olympic
Olympic athletes deserve immense respect and they dedicate large portions of their lives to representing their country, but exempting them from taxes when there are men and women risking their lives for their country while paying taxes seems stupid to me.
This.
I think the US tax code needs
I think the US tax code needs to be simplified either way, so I'm against an tax-exemptions for any gains, be it from being a soldier or an olympian.
bees415: It's pretty simple.
It's pretty simple. You have income. You pay taxes on that income.
YOU JUST GOT TROLLED
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Where does it stop if you
Where does it stop if you give Olympians a tax break? Do we start creating loop-holes for the NFL/NBA/MLB?
Olympic athelets deserve
Olympic athelets deserve respect? Sorry, no.
Military doesn't pay taxes
Military doesn't pay taxes while overseas...
I think any tax on a
I think any tax on a government payment is silly. If they wanted 25% of what they gave you back, they should have just paid you 25% less. Be it athletes, military, federal employees, it is a waste of money to give people money, and then spend money trying to recover x% of what you gave them.
But yes, it does seem like an awfully political thing to do.
And if NBC can't make money broadcasting the Olympics, they are either brain dead or lying.
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Nobody is considering the
Nobody is considering the theoretical macroeconomic or geopolitical reasons for the taxation exemption for Olympians.
Training for competition at that level requires complete dedication, and provides extremely low compensation. The average American Olympian makes about $15,000 a year (CNN). To win on the world stage, Olympians can't be devoting time to earning a living, so it is in the country's best interest to provide some support (assuming, as the government apparently does, that gold medals equate to international respect and influence). Olympians provide value to our society, but aren't directly compensated for it. The tax exemption is theoretically how we make up the difference.
Having said that, the tax exemption seems to me to be mostly symbolic, since someone making $15,000 a year isn't paying taxes anyway.
As for the military tax exemption, there are a ton of deductions and credits for military members that result in pretty low taxes for most servicemen and women. I think the system is fine as it is.
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21 Lives: I think any tax on
I think any tax on a government payment is silly. If they wanted 25% of what they gave you back, they should have just paid you 25% less. Be it athletes, military, federal employees, it is a waste of money to give people money, and then spend money trying to recover x% of what you gave them.
But yes, it does seem like an awfully political thing to do.
And if NBC can't make money broadcasting the Olympics, they are either brain dead or lying.
The Gov doesn't pay for the athletes medal winnings, it comes from the US Olympic Committee
Fear is the greatest motivator. Motivation is what it takes to find profit.
I could be wrong but I
I could be wrong but I thought the controversy was over the IRS taxing a gold, silver or bronze medal as "income". Think I read that receiving a gold medal for your win would come with a $9,000 income tax based on the value of the medal.
If that's the case, then I don't think there is a push to exempt Olympic athletes from taxes but to exempt them from paying taxes on their medals.
I don't think soldiers don't
I don't think soldiers don't pay tax while stationed overseas because they're soldiers. Any US citizen with less than 100k annual income don't have to pay tax. I'm going to say most soldiers probably make less than 100k.
Pour some sugar on me.
yousaygoodbyeandisayhello: I
I don't think soldiers don't pay tax while stationed overseas because they're soldiers. Any US citizen with less than 100k annual income don't have to pay tax. I'm going to say most soldiers probably make less than 100k.
Lol where the fuck did you get that number, you couldn't be more wrong. If someone is single and earns $9,500+ they have to file for taxes.
Personal wealth is not how much you have in the bank or the worth of your portfolio. But, rather how you've used the wealth to make your life and those around you better.
Saul_Villa: yousaygoodbyean
I don't think soldiers don't pay tax while stationed overseas because they're soldiers. Any US citizen with less than 100k annual income don't have to pay tax. I'm going to say most soldiers probably make less than 100k.
Lol where the fuck did you get that number, you couldn't be more wrong. If someone is single and earns $9,500+ they have to file for taxes.
He is actually correct. U.S. citizens that reside abroad are forced to pay taxes on their foreign earnings. However, the first $90k (or whatever the exact number is) is exempt. As a result, any U.S. citizen earning less than that target number abroad is effectively exempt from U.S. taxes. That said -- they still need to pay taxes on the earnings to the country they reside, so they don't exactly avoid all taxation, just U.S. taxation.
CompBanker
As the above poster
As the above poster mentioned, the Olympics athletes issue is on taxes on the medal per se. The value of the gold, the silver, and the bronze. The gold medal is worth ~ $800, silver ~$500, bronze ~$3. Is funny how bronze is worth about a BigMac. They should probably not tax the bronze medal winners.
I think is somewhat stupid to tax those athletes for their medals. Some of them won't even care as the amounts of money are not rally big (~$200 more in tax unless you are Phelps in 2008). But thats not something the athletes will appreciate. After all, winning for your country does put the USA in the map ;)
I vote for not taxing the medals. I know we are broke, but an extra $10,000 in taxes won't solve this mess. You should go for the big expenses IRS.
I disagree. No one living
monyet: I disagree. No one
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