A bipartisan group of U.S. House lawmakers has voiced strong opposition to the Internal Revenue Service (IRS) potentially taxing Spain's $50 million prize money from the FIFA World Cup. The prevailing concern among these representatives is that such taxation could negatively impact the U.S.'s ability to host major international sporting events.
Under current U.S. tax law, income earned by foreign individuals from activities conducted within the United States is generally subject to a 30% federal withholding tax, unless a tax treaty or another exception applies. This could mean a significant portion of Spain's winnings, earned through matches played in the U.S., could be subject to U.S. federal taxes.
"I think it's a ripoff," Representative Tim Burchett, R-Tenn., told Fox News Digital. "I'm not a fan of it, but Americans have to do it. American professional athletes do it, so they knew that when they came over here." He added that the U.S. should aim to encourage foreign athletes and visitors to spend money domestically rather than imposing steep tax obligations.
"It's wrong and that kind of highlights something bigger," Representative Jonathan Jackson, D-Ill., stated regarding the potential tax rate. Jackson criticized the broader U.S. tax code, suggesting that corporations should bear more of the tax burden instead of workers. He described the situation as a "class example of what’s wrong with our taxation system."
Representative Burgess Owens, R-Utah, an former NFL player, agreed that the potential 30% tax is excessive. He also highlighted the positive impact of hosting the World Cup in America, noting how the event fostered his own appreciation for soccer and its potential to engage young people in the U.S. "It is what it is here, unfortunately, in our country of taxes," Owens remarked.
The total prize pool for the World Cup was $871 million, with $655 million awarded based on performance. All participating teams whose earnings were derived from games played in the U.S. could face some level of taxation.
In a separate development, the U.S. had previously lifted a costly visa bond requirement for certain travelers participating in the World Cup, a move intended to facilitate easier entry for those involved in the event.