As U.S. Olympic athletes return home from London, several U.S. Senators and Representatives are considering changing the tax law to exempt these athletes from paying taxes on their Olympic medals and prize money.
The Americans for Tax Reform noted that U.S. Olympic medal winners could pay up to $8,986 in taxes on their medals and prize money.
However, as Charles L. Potter, Jr., a shareholder in the tax section, explained to the Pittsburgh Post-Gazette, there are ramifications to changing loopholes in the tax laws, and changing the laws can make them more lengthy and complex.
“It turns into a Christmas tree. Everybody's hanging something on to it,” said Potter.
Potter also explained that other sports winners, such as those who win Super Bowls rings or green jackets from the Masters Golf Tournament, should also pay taxes on those winnings.