According to Bankrate.com: "Professional sports players get taxed by pretty much every city and state in which they play, says Ryan Losi, CPA and executive vice president of Piascik & Associates, a Glen Allen, Va., accounting firm that represents more than 70 professional athletes." Read more here: http://www.bankrate.com/finance/taxes/taxes-cost-professional-athlete.aspx.

"The View" is actually talking about this on their show today.

If the athletes accept the money, they lose their amateur status. Therefore this tax doesn't apply unless they decide to accept money and become pro. Lot of talk about nothing. Just chance for politicians to poster. They can receive their medal($675.00 value) and retain their amateur status. Value of medal can be taxed, but I think it should be exempt from tax.

I think it should definitely be tax free for our athletes. Why should Americans working abroad be tax exempt, but not our athletes? These young people work very hard and at great financial burden for themselves and their families. Our government gives nothing to the Olympic teams, so why not let them have their winnings tax free?

A Secret Deal to End the Tax War:
Romney and Rubio Prove They Have a Good Sense of Humor
Olympic Medal Bill is Just a Diversion to Hide Real Tax Reform Deal

Each year the government gives away $1.1 trillion through tax expenditures and most of the money goes to people who do not really need the help. There is only one tax plan designed to eliminate all loopholes and revive the economy in the process. It measures wealth and economic need. In 1995 half of America shared only 3.6% of the wealth. By 2010 this share was only 1.1% for a wealth gap not seen since the Great Depression of 1929.

The 2-4-8 Tax Blend lowers income tax rates to 8% by eliminating tax expenditures and replacing job killing payroll taxes with a net 2% wealth tax (excluding $15,000 cash and retirement funds). Businesses would pay the same 8% income tax rate and a 4% VAT.

Congressional representatives have been discouraged from speaking publically about the plan before the election because it is strictly a nonpartisan plan which will actually fix the economy, Social Security and Medicare without government spending. Members who have pledged to fix the economy or die trying say the reforms also comply with ATR’s bipartisan no-tax pledge. Rich, poor, Muslims, Latinos, gays, big oil companies, small manufactures, Democrats, homeowners, S corporations, women, farmers, Olympic medal winners and Catholics would all be taxed with the same very low rates.

www.TaxNetWealth.com

If anyone gets a Tax exemption it should be our active veterans !

Tax exempt status for athletes who compete in the Olympics or establish a non-profit organization to donate funds to assist the athletes.

Marco Rubio is posturing for veep, and getting his name out on the national stage by playing off of our patriotism during the olympic games. I dont think he really cares about the tax. One post says 'The View' is already talking about this. I find politics disturbing on good days and disgusting on bad.
As to the tax, I like the idea of a non-profit organization set up to pay for the tax on the medal if the winner is truly an amateur athlete and not already professional. The professional basketball and tennis players can afford it.

Bernadettes Idea of a Non-Profit organization is great, If they are amatures. I don't see why this would be that much of a issue. But politics have to play and prey on ALL of us.

There's a facebook page... don't tax olympians that addreses this topic

Our Olympians train very hard, sometimes for years, for a chance to represent our Country. More and more our children cannot look up to professional athletes as role models. All they have left is our Olympians. They are real heroes and should not be taxed.
What little prize money any of them earn is usually not enough to even cover their expenses for participating much less all the time they have put in training. If we are not paying them for their efforts, which we do not, they should be allowed to keep their winnings.