The President and his Republican challenger moved swiftly to support a Bill proposed by two Republican senators to make the awards tax-free, amid anger from anti-tax campaigners.
Successful American competitors in London must count the $675 (£433) value of a gold medal, $382 (£245) for a silver and $5 (£3) for a bronze towards their annual income for tax purposes.
Those earning $380,000 (£244,000) or more face paying the top rate of 35 per cent on their medals' value. They are also liable for income tax on the $25,000 (£16,000) bonus offered by US Olympic authorities for winning gold, $15,000 (£9,625) for a silver and $10,000 (£6,400) for bronze.
"Because the US is virtually the only developed nation that taxes 'worldwide' income earned overseas by its taxpayers, our Olympic athletes face a competitive disadvantage that has nothing to do with sports," said a spokesman for Americans for Tax Reform.
Senators Marco Rubio of Florida and Blake Farenthold of Texas promptly introduced the Tax Exemptions for American Medalists – or TEAM – Act, vowing to "remove another needless tax on the exceptional American athletes who represent our nation on the world's stage".
A spokesman for Mr Romney said last week that the Republican candidate backed the plan, which would apply to all awards won in 2012. Jay Carney, the White House press secretary, confirmed on Monday that Mr Obama also supported changing the law
2 comments:
Write comments