|They're so pretty!! [Photo Source]|
Olympic athletes are compensated for winning medals. The United States Olympic Committee pays $25,000 for a Gold medal, $15,000 for a Silver medal and $10,000 for a Bronze. This money can be even be accepted by amateur athletes without compromising their College eligibility. And that's what they owe major taxes on. Is there nothing sacred? The government gets a cut of everything! The IOC doesn't have have to pay them to make them want to win medals but it's gotta be a nice bonus. Especially for those athletes that don't do money maker sports like Basketball or Tennis. This is their big chance to finally earn some money after years and years of sacrifice and expensive training costs.
If you are already rich like Michael Phelps or going to be rich like Gabby Douglas then you can probably afford to come up with the tax money that's owed. If not, I say don't spend it all in one place. The $25K might only be $16K after taxes which is kind of sad but at least you'd have the money to pay up without the IRS coming after you.