Image via London Organizing Committee

Image via London Organizing Committee


Olympic athletes already have it pretty swag. There’s the trip to London, all the equipment and uniforms and the wild times at the Olympic Village. (Shorter version: It’s a giant two-week orgy.) To say nothing of the fact that these people tend to be the fittest specimens the human race has to offer.

What could possibly make it even better to be an Olympian?

Well, for U.S. athletes, an anti-tax organization and a Tea Party favorite are proposing a nice, fat tax loophole for medal-winners.

Beside the national glory, winning a medal for Team USA comes with a substantial honorarium from the U.S. Olympic Committee—$10,000 for bronze, $15,000 for silver and $25,000 for gold.

Of course, as cash prizes, those sums are subject to income tax. But Americans for Tax Reform and Sen. Marco Rubio (R-Fla.) think otherwise. Rubio today proposed a bill that would exempt Olympic medalists’ honorariums from federal taxes.

The Olympic Tax Elimination Act would allow Olympic champions like Michael Phelps, Ryan Lochte, Missy Franklin and the “Fab Five” women’s gymnastics team to avoid paying the Internal Revenue Service nearly $9,000 on the gold medals they’ve won so far at the London games.

“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,” Rubio said, according to Politico. So complicated, apparently, it’s worth adding another loophole that would reward overseas performances, Rubio said.

Americans for Tax Reform says that bronze medal winners get tax bills of $3,500, while silver medalists are dinged for $5,385.

Thing is, U.S. residents who earn income overseas and then bring that money back home are required to pay taxes on it. Is it fair? Maybe not. But neither is only giving a tax cut to people because they happen to be at the peak of physical fitness.