Singletary: Should an Olympic medal earn a tax break?

“Most countries subsidize their athletes; the very least we can do is make sure our athletes don’t get hit with a tax bill for winning,” said New York Sen. Chuck Schumer, a co-sponsor of the bill. “After a successful and hard-fought victory, it’s just not right for the U.S. to welcome these athletes home with a tax on that victory.”

As part of my email newsletter, I ask the Color of Money Question of the Week. My most recent query: Should U.S. Olympic winners have to pay taxes on the bonuses they get for winning a medal?

Here’s what some of you had to say:

On Twitter, @Eddieca11486276 wrote: “No!!!! They [Olympic athletes] were given to the world to represent the achievements of their country. Let them enjoy the fruit of their labor.”

Many people echoed the following comment from another reader: “The prize money should not be taxed, although for some of the high-profile athletes, it is a drop in the bucket compared to the endorsement money and other financial windfalls that come with their success. Many, perhaps most, of the less visible winners in sports that don’t make prime-time TV don’t enjoy that benefit even though they also put in years of sacrifice to reach their success at the Olympics. The federal or state governments that have income taxes are never going to miss the few thousand dollars they might get from taxing the medal winners. We collectively claim success for our great country and society based on their hard work and we ought to reward them; not taxing their prize money seems like a small token of appreciation for their dedication and hard work.”

But there were many who don’t agree that Olympians deserve a special tax privilege.

“At my corporate job, I’m taxed on any bonus and reward given to me by my employer, even if the reward is an item instead of money,” Ruth B. wrote. “If Congress considers changing the taxable status for medal-winning Olympic athletes, they should change the rule for everyone. Why is one person’s bonus different than another’s?”

Philip Lilienthal, president of Global Camps Africa in Virginia, made a good point: “Of course they should pay a tax. I do wonderful work in Africa, working with children to educate them in avoiding HIV. Any salary I make is and should be taxed. Your relief from tax should not be the value of the work you do: or, maybe it should be, but that never has been the prism through which the IRS looks to see whether you should be taxed. This is no different.”

I understand the compassion people have for folks who devote a great amount of money and time to compete in the Olympics. But if we are going to carve out a special tax break for Olympic athletes, then we should add to that list all those people who serve for the good of society, including educators, social workers and people who work with the poor. Just saying.

Michelle Singletary welcomes comments and column ideas. Reach her in care of The Washington Post, 1150 15th St. N.W., Washington, DC 20071; or singletarym@washpost.com.