Swimming Upstream: Tax Free Medals?

Clearly these thoughts will provoke, agitate, rile and annoy most people because they have already emotionally and viscerally committed and connected to the idea the American athletes who win medal in the Olympic Games should not be expected or made to pay taxes on the monetary prize that accompanies the medals themselves. Surely it is fundamentally and essentially American to not have anyone who is representing the nation to the world in these international competitions to have to pay taxes on such awards.

But while it is clear and obvious that Americans think it is patriotic and American to not make our country’s athletes pay taxes on the Olympic prize money, it is worth a minute’s worth of consideration for the basis in logic, principles and fairness. So let’s take a minute and consider.

The athletes represent America voluntarily and in the spirit of serving the nation as our ambassadors to the world. They have spent years training and competing to attain their status as the best in their sports. This dedication and drive is exemplary of American values: working hard, struggling against the odds, and let’s face it succeeding. Often these athletes pursue their ascent to the top positions in their sports in relative obscurity where only those intimately knowledgeable about the sports know who them, to the American public they are not household names. [Note: there are some exceptions like NBA stars and women beach volleyball players. Who make decent money and really need the help from the political brain-trust.]

Are athletes in some way truly unique in representing America to the world, and thus warranting of a special exemption? We don’t want to consider the military personnel that are deployed in both larger numbers and in more countries? They represent America every day in situations that are substantively more important and centric to American values than sports. Should we tax them for fighting and protecting our nation because it’s not entertaining and the medals often won are not for things that anyone would strive to have happen to them? Surely this is more aligned to our American values; and thus the tax exemption is not justified on the basis of representing America. What about scientist and Nobel prize winners? Do they represent American values less honorably, less importantly or less meaningfully?

So it’s hard to come up with the specialness that makes the exemption so appropriate here?

Now if the politicians wanted to show their recognition of the significance of the athletes’ accomplishment and believe that the athletes deserve the full value of their prize money, they could be (what do you call it? Oh, yeah!) smart. They could think, perhaps for the first time, about an issue before they choose the simple-minded and good old political answer to everything: let’s pass a half-baked, half-considered, half-assed law that creates an opportunity to look like they are doing something good (a rarity in itself).

Why not insure that the athletes get to keep their prize money by making the solution a true American approach to solving the dilemma? If they can’t think of any, they could consult with people who could show them how to handle the problem. They could turn the solution not into a government mandated solution but into a patriotic recognition consistent with American values. This doesn’t require the politicians to do anything, so they could continue to do what they are good at – doing nothing. They could tell the public how the athletes could keep the prize money without them having to take credit for it, but then they couldn’t take credit for it.

So why do I think it’s wrong for our politician’s to rush into this issue which they seem ill-equipped to handle? Because the politicians should be true leaders and just try and take credit for charging to the rescue when they are just seizing the spotlight.