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> Since the Reagan tax reforms of the mid-1980s, the United States, the only country to tax the [Nobel] prize, has taken another 40 percent or so off the top. (
by Maxious 13y ago
> Since the Reagan tax reforms of the mid-1980s, the United States, the only country to tax the [Nobel] prize, has taken another 40 percent or so off the top. (http://www.cnbc.com/id/49341627 http://www.cnbc.com/id/49341627)
Really? Oh yes it's right there under "Pulitzer, Nobel, and similar prizes." http://www.irs.gov/publications/p525/ar02.html#d0e8326 http://www.irs.gov/publications/p525/ar02.html#d0e8326
Stay classy America.
- LanceH 13y agoAny reason that the winner of a cash prize from a popularity contest shouldn't be paying taxes?
- galaktor 13y agoI'm going to play the devil's advocate here: couldn't you argue that whatever you did to win a Nobel prize is already (supposedly) a significant contribution to society, making additional contribution via taxes unnecessary (or, in fact, discouraging); as opposed to, say, winning the lottery.
- JoeAltmaier 13y agoI hope I'm making a significant contribution to society with my job. Where's my tax break?
- roel_v 13y agoSure, but why isn't, e.g., being a teacher not a significant contribution? Or, for the sake of this argument, being the founder of a wildly successful company that employs thousands of people? Look, I'm against taxes as much (and probably even more) than the next guy, but making exemptions for prizes is plain irrational.
- LanceH 13y agoYea, it would be awesome to give the government another vector to pick winners and losers based on "contribution to society". I'm certainly not for more taxes, but I'm definitely not for more tax rules and exemptions.
- icebraining 13y agoThere is already a tax rule just for those prices, that "picks winners and losers"; it would be a matter of removing conditions from that rule (that the prize must be donated), not adding another.
- autodidakto 13y agoAsk every other country in the world. I'm sure they have reasons. And the Nobel prize isn't a popularity contest.
- rsynnott 13y agoBased on the rules there, it looks like it shouldn't be taxed. The Nobel prize definitely meets criteria one and two, and three seems easy to meet.
- techsupporter 13y agoIt's only not taxed if you agree, in advance of receiving the prize, to donate the proceeds to a charity. Any form of keeping it for your own use is taxable under those rules (you must meet "all of the following" requirements for the award to not be taxable).
- patmcguire 13y agoAlso, America is the only country that taxes overseas income. So the only other country where the tax status of the Nobel prize would be in doubt is Norway.
- spitfire 13y agoCanada does also. They made a tax treaty with hong-kong in 2012. I've had to file a statement with Canadian authorities to avoid double taxation in on my British income.