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As reigning 2026 FIFA World Cup champions, Spain won $50 million in prize money, but much of that could be subject to federal tax in the United States – possibly as much as 30%.
“I think it’s a rip-off,” Rep. 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 here.”
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Congressman Tim Burchett speaks to reporters after a House Republican conference at the U.S. Capitol in Washington on July 23, 2024. (Anna Moneymaker/Getty Images)
Income from activities in America is generally and in almost all cases subject to taxation by the IRS. Under U.S. tax law, certain payments to nonresident foreign athletes are generally subject to a 30% federal withholding tax unless reduced by a tax treaty or other exemption.
“That’s wrong, and that underscores something bigger,” Rep. Jonathan Jackson, D-Illinois, said of the potentially high tax rate on Spain’s prize.
Burchett argued that the potential tax burden sends the wrong message as the U.S. prepares to host more major international sporting events, saying the country should encourage foreign athletes and visitors to spend money domestically rather than subjecting them to heavy tax obligations.
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French fans celebrate after their team won a 2026 World Cup match against Sweden in the Brooklyn borough of New York on June 30, 2026. (Leonardo Munoz/AFP via Getty Images)
“I’m not a big fan of the IRS,” Burchett said. “They made the money here, I guess, but I don’t like any of that. We want to encourage these people to come here and spend their money, and then we’ll take a big chunk of it.”
“We need to get a better tax system.”
The World Cup prize pool totaled $871 million, with $655 million of that dependent on performance in the tournament. All teams that have participated in games in the United States are taxed a certain amount on their income, even if the only payment was made for participation.
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Jackson also criticized the broader U.S. tax code, arguing that corporations should pay more taxes than workers. He called it a “classic example of what’s wrong with our tax system.”
“They should pay the taxes instead of having tax loopholes,” Jackson said. “The people, the workers who work, shouldn’t have to pay 30% of their income in taxes.”
Rep. Burgess Owens, R-Utah, agreed with his colleagues that the potential 30% tax on the price was “too high,” but took the opportunity to address the importance of hosting the World Cup in America. A retired NFL player, he shared how the experience drew him to football, a sport he had never been interested in before the World Cup.
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“I have a great appreciation for football now,” Owens told Fox News Digital. “I think it will be a game-changer for so many of our children. And so I want to congratulate the president, everyone who made this possible.”
“Unfortunately, the way it is here in our tax country.”
Hannah is a production assistant for the politics team at Fox News Digital.
https://www.foxnews.com/politics/irs-hot-seat-over-potential-cash-grab-spains-world-cup-winnings-ripoff
