GOP Demands IRS Stop Withholding World Cup Prize Money


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Spain’s World Cup victory comes with a twist most fans didn’t expect: a roughly $50 million prize that could face steep U.S. tax withholding, sparking Republican criticism that the policy discourages foreign visitors and highlights a broken tax system that needs reform.

The headline is stark and simple: Spain earned the $50 million top prize by winning the tournament, but U.S. tax rules treat income earned on American soil differently, often subjecting nonresident athletes to a 30 percent withholding. That reality has Republicans calling out the IRS and urging changes to avoid sending the wrong message to the world as the U.S. courts future international events. The debate has become a flashpoint that mixes tax policy with national sports diplomacy.

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Rep. Tim Burchett summed up the GOP reaction bluntly, saying, “I think it’s a rip-off,” and adding a broader shot at the system with “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 argues that treating foreign teams like a revenue source undermines the hospitality the U.S. should show to the global sports community. That point is political and practical: if you want tourism and global goodwill, you should not give visitors a reason to feel punished for coming here.

Burchett went further, taking aim at the IRS in a direct way by saying, “I’m not a big fan of the IRS,” and following with, “They made that money over here, I guess, but I don’t like all that. We want to encourage these people to come over here and spend their money, and then we take a big chunk of it.” His message is straightforward conservative economics: lower barriers and fewer disincentives for spending in the U.S. and you get more commerce, not less. He concluded with a call for practical change, saying, “We’ve got to get a better tax system.”

Not every lawmaker agreed on the precise fix, and Democrats raised their own critiques, but Republicans focused on the competitive impact. Rep. Burgess Owens, reflecting on the event’s domestic value as a former athlete, praised the boost to American interest in soccer while noting the tax sting, saying, “I have such an appreciation for soccer now,” and adding, “I think it’s going to be a game changer for so many of our kids. And, so, I want to congratulate the president, everyone who made this happen.” Even in celebration, he reminded readers that, “It is what it is here, unfortunately, in our country of taxes.”

Beyond the political sound bites, the numbers matter: the World Cup’s total prize pool came in at $871 million, with $655 million tied to performance, and any team or participant who earned money while playing in the U.S. will face some level of U.S. taxation. That blanket treatment of nonresident income is rooted in long-standing tax rules, and Republicans argue those rules were never meant to serve as a hospitality tax on visitors. The question now is whether lawmakers will treat this as an opportunity to modernize the approach or simply shrug and accept the optics.

Democratic voices framed the issue as part of the broader tax fairness debate, with Rep. Jonathan Jackson saying, “It’s wrong, and that kind of highlights something bigger,” and pressing that ordinary workers should not shoulder the burden that corporations dodge. He put it plainly: “They should be paying the taxes as opposed to having tax loopholes,” Jackson said. “The people, the laborers that are working, they should not have to pay 30% of their income on taxes.” While Republicans agree on fixing the downside, they prefer policy changes that boost competitiveness rather than hike domestic taxes.

Republican lawmakers are pushing the narrative that America needs to be inviting and smart about how it taxes activity on its soil, especially when great events bring global attention and dollars. Their position is practical: hosting the biggest stages in sport should come with rules that reward spending and tourism, not punish it. Fixing the withholding treatment for foreign teams would be a clear, visible step that signals the U.S. is open for business and values the economic lift these events bring.

The larger conversation now extends beyond one check to Spain and into how the U.S. balances tax compliance with economic competitiveness, soft power, and the integrity of big sporting events. Republicans are using this moment to argue for a simpler, fairer approach that encourages visitors and athletes to spend their money here, contributes to local economies, and avoids the perception that America’s tax code is an obstacle to global engagement. Lawmakers will face pressure to move quickly or risk the argument that hosting major events cost the country more than it gains.

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