Let's be accurate here.
1. The medal itself is not taxed. A "gold" medal is only worth about $600 in metal, and as a practical matter the IRS doesn't tax it, although in theory it could.
2. US athletes get $25K per gold medal as a bonus, this is paid by US sports organizations. This is taxable income, as any sports prizes and winnings are. If that was the athlete's only income, then his actual tax rate on $25K would be effectively nil. If the athlete is in the top tax bracket due making $ millions from his other earnings, then his actual tax rate on $25K of additional income would be around $9K, less whatever deductions and credits his accountant comes up with. Since in this scenario he's making millions, the $9K likely doesn't break him.
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Quote de dennis in se pa
"Many of them still make many millions in endorsements" - Then they are not amateurs.
None of them are. Not one. Do you think any of them have day jobs and just do the sports thing nights and weekends? Michael Phelps was making millions a year before the 2008 games. Should he not be able to swim in the 2012 games because of his endorsements after he got super famous following the Beijing games? How else is he gonna pay the $175k in taxes on his 20 gold medals? There are no part-timers in the Olympics and they have to have plenty of income to support their training and lack of day jobs.
If you want only real amateurs to be allowed to compete, you'd have to scout from high school teams, maybe college. Though I'd consider a $100k worth of athletic scholarships to be plenty of income/sponsorship.
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