Lawmakers are making headlines (surely their primary intent) by saying things like:
” “Only the U.S. tax code can turn the ‘thrill of victory’ into the agony of victory,” Reps. Mary Bono Mack (R-Palm Springs) and G.K. Butterfield (D-N.C.), sponsors of a bill to eliminate the tax, said in a statement. “
And so they’re talking about (doing something about?) changing this:
” “Olympians who dedicate their lives to athletic excellence should not be punished when they achieve it,’’ [Marco Rubio] said.”
Uh, right. No, not right. This is ridiculous. Except that it’s not. But it is logically odd. Why? Because any argument that can be made for exempting a tax on Olympic medals could also be made on exempting tax from ANY income. Marco Rubio’s statement is really, logically, a statement about abolishing the entire income tax. This is a good thing and ought to be done. But I highly doubt that’s what he intended. (Ok, maybe it’s what he intended, but it’s certainly not what others in Congress intend.)
Here’s the proper way to look at Marco’s statement: As who dedicate their lives to B should not be punished when they achieve B.
Let A = businessmen and B = building profitable companies that employ thousands of people.
Let A = Joe the Plumber and B = a good salary
and so on.
No, Olympic medals should not be taxed. But that is just the same as saying there shouldn’t be an income tax.
Indeed, there shouldn’t be.
Also, I should point out that Reps. Bono and Butterfield use a very interesting phrase: “agony of victory”. They’re referring to (income) taxes. Almost certainly they speak differently of (income or capital gains) taxes when referring to businessmen, corporations, Mitt Romney. This entire topic is an interesting expose into the utter ridiculousness of the mind of a politician.