Mitch Perry
In the wake of nearly 200 NFL players deliberately refusing to stand during the “Star Spangled Banner” last weekend, conservatives are talking about hitting the league where it hurts — in its pocketbook.
Sarasota-area Republican Vern Buchanan has sent out a survey to supporters asking them whether the league’s tax-exempt status should be revoked “in response to players refusing to stand during the national anthem?” (As of Monday morning, nearly two-thirds said yes.)
The NFL did voluntarily remove the tax exempt status for the league office back in 2015. Buchanan spokesman Ryan Ploch notes that the NFL’s tax exemption continues to exist in permanent law — “the league simply volunteered to stop taking it.”
Panhandle Republican Matt Gaetz made headlines last week when he announced that he was taking over as lead sponsor of H.R. 296, the Pro Sports Act, which is legislation that ends the tax-exempt status of professional sports leagues which still maintain that status.
“Right now, one of the special interest loopholes in our tax code allows the league offices of professional sports leagues to avoid paying taxes. That’s crazy,” Gaetz told MSNBC over the weekend. “That’s a special interest giveaway that the small businesses in my district certainly don’t have access to. And so I have introduced legislation to abolish the special tax exemption that the NFL enjoys and that all other professional sports leagues enjoy. I think that’s fairer for folks on Main Street and folks in the middle class.”
The bill was previously sponsored by now-retired Utah Republican Jason Chaffetz.
In a memo from the Spring of 2015, NFL Commissioner Roger Goodell said the discussion about the league’s tax-exempt status was a “distraction,” and said the league office would give it up. CNN reported the league saved about $10 million with its tax-exempt status, as estimated by Citizens For Tax Justice.
While the NFL remains tax-free, the Joint Committee on Taxation estimated that removing such nonprofit status for all sports leagues would increase federal revenues by $109 million over ten years.
4 comments
Roger A Riffle
October 3, 2017 at 7:24 am
They should pay taxes they make billions of dollars why is it always the little guy paying it all
Timothy Winzell
October 4, 2017 at 6:58 pm
They do pay taxes now. This old exemption only applied to the league itself, not the team franchises, which are not tax exempt.
Lawrence M Backer
October 3, 2017 at 10:27 am
I agree, The public should not support these sports mega corporations with tax exemptions, free arenas, and immunity from antitrust regulation. They are monopolies which are operating counter to the best interests of the people of the USA.
We need to:
1. take away their tax exempt status.
2. treat their free use of arenas as taxable income, valued at the market rate.
3. Limit their use of eminent domain to acquire area real estate.
4. Repeal the Sports Broadcasting Act 1961, which shields them from antitrust.
5. Repeal the tax exempt status of interest on municipal bonds used to support any project that is primarily benefiting a private business or organization.
The list goes on and on.
We need to stop the tax breaks for this privileged class. We would scream bloody murder if GE or Exxon enjoyed these perks. Give the US taxpayer a break!
Cheri Syverson
October 8, 2017 at 10:40 pm
I agree the pro sports arenas
Should not have tax exeptions.
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