Spain, the reigning 2026 FIFA World Cup champions, won $50 million in prize money, but a significant portion of this amount may be subject to federal taxes in the United States, potentially up to 30%. Representative Tim Burchett (R-Tenn.) expressed his disapproval, stating, "I think it's a rip-off," while acknowledging that American athletes face similar tax obligations. According to U.S. tax law, income earned from activities performed in the country is generally taxable, with nonresident foreign athletes typically subject to a 30% federal withholding unless reduced by a tax treaty or other exceptions.
Representative Jonathan Jackson (D-Ill.) criticized the high tax rate on Spain's prize money, suggesting it sends the wrong message as the U.S. prepares to host more international sporting events. Burchett emphasized the need to encourage foreign athletes and visitors to spend money in the U.S. rather than imposing steep tax obligations. He stated, "We want to encourage these people to come over here and spend their money, and then we take a big chunk of it. We've got to get a better tax system."
The total prize pool for the World Cup was $871 million, with $655 million based on performance. All teams participating in games in the U.S. will have their earnings taxed. Jackson also criticized the broader U.S. tax code, arguing that corporations should pay more taxes instead of workers, calling it a "classic example of what’s wrong with our taxation system." Representative Burgess Owens (R-Utah) agreed that the potential 30% tax is excessive but highlighted the importance of hosting the World Cup in America, reflecting on how it has increased interest in soccer.