Following their 1-0 victory over Argentina at the New York New Jersey Stadium on July 19, the Spanish national team may be required to pay 30 percent of their $50 million World Cup prize money to the United States government. Current American tax regulations mandate that income generated within the country is subject to federal taxation.
For foreign athletes who do not reside in the U.S., a 30 percent withholding tax is standard unless an exemption or tax treaty applies. Republican Congressman Tim Burchett of Tennessee criticized the policy in remarks shared by Fox News, labeling the financial burden as a rip-off. While Burchett expressed his disapproval of the rule, he noted that local athletes are also subject to similar obligations when working in the nation.
