Spain, having just secured its victory in the 2026 FIFA World Cup, stands to gain $50 million in prize money. However, there’s a catch: a significant portion of that could be taxed in the U.S. at rates as high as 30%.
Rep. Tim Burchett (R-Tenn.) expressed his discontent, saying, “I think this is a rip-off.” He acknowledged that while he’s not particularly fond of the situation, it’s a norm for American athletes as well. They’ve accepted it knowing they’d face similar tax obligations here.
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Typically, income earned from activities performed in the United States is subject to taxation by the IRS. For nonresident athletes, the federal withholding tax usually applies unless reduced by treaties or specific exceptions.
Rep. Jonathan Jackson (D-Ill.) criticized the potential tax implications, noting that this reflects a broader issue within the tax system. Burchett further contended that the high tax could deter foreign athletes and tourists, suggesting that it sends the wrong message as the U.S. prepares to host more international sporting events.
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Burchett shared, “I’m not a big fan of the IRS. They’ve made substantial profits here, but the approach feels off. We should encourage visitors to spend and experience the U.S., not take a large cut.” He added, “We ought to consider revamping our tax system.”
The World Cup’s total prize pool amounts to $871 million, with performance-related earnings reaching $655 million. Teams participating in matches on U.S. soil will incur taxes, regardless of whether they’re receiving prize money or just participation fees.
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Mr. Jackson lamented the convoluted tax laws in the U.S., suggesting that corporations should shoulder more tax responsibility than individuals. “This exemplifies what’s wrong with our tax system,” he remarked. “Regular workers shouldn’t be paying rates like 30%.”
Rep. Burgess Owens (R-Utah), acknowledging that a potential 30% tax on prizes feels excessive, also highlighted the significance of hosting the World Cup. He shared how that experience initially drew him to football, a sport he previously hadn’t much interest in.
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Owens reflected on his appreciation for football, stating he believes the upcoming events will inspire many young people, praising the efforts of the president and others in making the tournament a reality.
“Unfortunately, that’s just how it is in our tax system,” he concluded.
