Bill to eliminate Olympic medal tax stalls

August 24, 2012 4:38:28 PM PDT
A bill exempting Olympic athletes from paying taxes on their medals and prize money is stalled in the state Assembly. U.S. athletes owe taxes every time they win a medal. It's similar to a game show, where contestants have to pay taxes on any prize they take home.

"And the reality is that these Olympians make a lot of personal sacrifices through the years, and they ought to, you know, get some kind of recognition from all of us and this is a small, small token of that particular acknowledgement," St. Sen. Leland Yee, D-San Francisco, said.

Critics point out that Nobel Prize winners aren't exempt, and neither are professional athletes. An Olympic gold medal earns the winner $25,000.