House Lawmakers Question 30% IRS Tax on Spain's $50 Million World Cup Prize
Updated
Updated · Fox News · Jul 22
House Lawmakers Question 30% IRS Tax on Spain's $50 Million World Cup Prize
2 articles · Updated · Fox News · Jul 22
Summary
$50 million in World Cup winnings for Spain could face up to 30% U.S. federal withholding, prompting bipartisan criticism from House lawmakers.
U.S. tax law generally taxes income earned from activities performed in America, and payments to nonresident foreign athletes are usually subject to a 30% federal withholding unless a treaty or exception applies.
Rep. Tim Burchett called the potential tax a "ripoff" that could discourage foreign athletes and visitors as the U.S. hosts more major events, while Rep. Burgess Owens said the rate was simply too high.
Rep. Jonathan Jackson used the case to attack the broader tax code, arguing workers and athletes should not bear such heavy taxes while corporations benefit from loopholes.
The issue reaches beyond Spain: FIFA's 2026 tournament paid out $871 million, including $655 million tied to performance, and teams playing in the U.S. could owe tax even on participation payments.