Should Congress revoke the NFL's tax exempt status?

[iacardsfan]

From change.org:

Despite the fact that it is a $9Billion/Year industry, the National Football League (NFL) continues to enjoy status as a non-profit organization -- meaning it doesn’t have to pay federal corporate taxes.

The Commissioner of the NFL, Roger Goodell, makes nearly $30 million a year -- earning more than the heads of companies like Coca-Cola and Wal-Mart. Through TV deals alone, the NFL has inked nearly $30 billion with various television networks. And so often, fans like you and me are asked to foot the bill for new stadiums through our own taxes.

Yet despite being the most profitable sports league in the entire world, the NFL does not pay federal taxes.

http://www.change.org/petitions/con...exempt-status-of-the-national-football-league


The question is fairly black and white; should the NFL's status as tax exempt be revoked?

 

[Thom Paine]

From change.org:



http://www.change.org/petitions/con...exempt-status-of-the-national-football-leagueThe question is fairly black and white; should the NFL's status as tax exempt be revoked?

A simple question but to what end; Why ? ?

Thom Paine

 

[specklebang]

A simple question but to what end; Why ? ?

Thom Paine

Because when I make my first billion (the hardest part) I don't see why they should pay less taxes than me. This whole non-profit thing is total bull****. Bad enough these phony churches get it, why do sports get a break that others don't?

 

[radcen]

I believe they should be taxed, absolutely. I understand they qualify for tax-exempt by the letter of the law as it is currently written, but I also believe that they are not now what was originally intended.

 

[Thom Paine]

Because when I make my first billion (the hardest part) I don't see why they should pay less taxes than me. This whole non-profit thing is total bull****. Bad enough these phony churches get it, why do sports get a break that others don't?

Well, let's make "The Specklebang Gang" a non profit .. no worries ! :mrgreen:

The teams are taxed; I don't see a reason to tax the association because it distributes much of the money to the teams; seems like double taxation and I wouldn't care for that for myself.

Thom Paine

 

[radcen]

Well, let's make "The Specklebang Gang" a non profit .. no worries ! :mrgreen:

The teams are taxed; I don't see a reason to tax the association because it distributes much of the money to the teams; seems like double taxation and I wouldn't care for that for myself.

Thom Paine

Much of the money, not all.

And they can issue the teams a 1099 for all I care.

 

[chromium]

Most definitely, building a $1 billion stadium in the great recession was tasteless enough, but this is nothing but pure entertainment. They are not a necessity of life.

 

[Henrin]

Why don't we just tax people and stop pretending that other entities can pay taxes.

 

[specklebang]

Well, let's make "The Specklebang Gang" a non profit .. no worries ! :mrgreen:

The teams are taxed; I don't see a reason to tax the association because it distributes much of the money to the teams; seems like double taxation and I wouldn't care for that for myself.

Thom Paine

If I could make my post disappear, I would. What do I know about the NFL financial structure? Nothing. So what was the point of the post? Nothing.:3oops:

 

[Thom Paine]

If I could make my post disappear, I would. What do I know about the NFL financial structure? Nothing. So what was the point of the post? Nothing.:3oops:

Sometimes, our fingers get caught up in the frenzy of the moment and like unruly children they momentarily take over. Why, I had to slap the hell outta' my left hand for getting out of control on another post... :lamo

Have a great day, Speck

Thom Paine

 

[AliHajiSheik]

Do any of the above posters realize that the teams do pay taxes as profit-based entities and the league as a non-profit is set up for the organization and betterment of the teams?

 

[radcen]

Do any of the above posters realize that the teams do pay taxes as profit-based entities and the league as a non-profit is set up for the organization and betterment of the teams?

Of course we understand that. Duh!!! Do you understand that we're not debating the current status of the league and/or the laws... and that we're debating whether changes should be made to the status of the league and/or laws?

 

[StillBallin75]

The franchises are the ones who pay the taxes...

 

[Ockham]

I'm not quick to say "yes" they should pay taxes as the NFL, as long as they live up to the status of non-profit, should remain tax exempt. However, I would support an investigation and audit into the NFL to make sure those standards continue to be met and that the number of creative accounting opportunities are kept to a minimum. The amount of money going through professional sports is very high, and since we're talking about humans and not computing running this, they have the habit of getting greedy and bending the rules. It would be nice to know the NFL is playing by the book.

 

[earthworm]

Because when I make my first billion (the hardest part) I don't see why they should pay less taxes than me. This whole non-profit thing is total bull****. Bad enough these phony churches get it, why do sports get a break that others don't?

If taxes were done in a fair and equitable manner, quite possibily the rates could be reduced.
"tax 'em all"
I cannot believe that the NFL is "non-profit".....who many people even know this ??

 

[radcen]

If taxes were done in a fair and equitable manner, quite possibily the rates could be reduced.
"tax 'em all"
I cannot believe that the NFL is "non-profit".....who many people even know this ??

To me it demonstrates that "non profit" needs to be more narrowly defined.

 

[specklebang]

If taxes were done in a fair and equitable manner, quite possibily the rates could be reduced.
"tax 'em all"
I cannot believe that the NFL is "non-profit".....who many people even know this ??

That was my assertion also but Thom Payne brought up an interesting point that may mean this really isn't a tax exemption but a tax liability transfer. Since I'm no CPA, I kind of backed off. We do have a few economic expertise members here, maybe they'll explain it better to us.

 

[radioman]

To me it demonstrates that "non profit" needs to be more narrowly defined.

You've got that right.
If an entity is really a "non-profit", there would be no profits to tax.
Therefore, the "non-profit" status would be pointless.
What am I not getting here?

 

[AliHajiSheik]

Of course we understand that. Duh!!! Do you understand that we're not debating the current status of the league and/or the laws... and that we're debating whether changes should be made to the status of the league and/or laws?

I didn't realize that you spoke for everyone else. I suggest that most people don't know that judging from later posts.

How much exactly do you think you are going to be taxing since the revenue goes mostly to the teams which are for profit?

Of course, there is no reason to believe that a Senator, who generally favors lower taxes, from Oklahoma, which aspires to have an NFL team, would be interested in this issue.

 

[radcen]

I didn't realize that you spoke for everyone else. I suggest that most people don't know that judging from later posts.

How much exactly do you think you are going to be taxing since the revenue goes mostly to the teams which are for profit?

Of course, there is no reason to believe that a Senator, who generally favors lower taxes, from Oklahoma, which aspires to have an NFL team, would be interested in this issue.

The amount is irrelevant.

I wouldn't bet money that it will be changed anytime soon. But it is good that the issue is out there and being discussed. If nothing else it will at least give more of the population an idea of exactly what are government does in our name.

 

[DVSentinel]

I don't know enough about how they distribute what they take in. If after the revenues are distributed, they make no real profit, then they are a non-profit. Regardless of how much they actually take in. The same would be true of the Red Cross or many other "non-profit" organizations. You need to look at their net, not their gross.

I would however say that there maybe should be a limit on what a non-profit is allowed to pay executives and officers.

 

[Gipper]

That was my assertion also but Thom Payne brought up an interesting point that may mean this really isn't a tax exemption but a tax liability transfer. Since I'm no CPA, I kind of backed off. We do have a few economic expertise members here, maybe they'll explain it better to us.

Here's an opening. It could very well be liability transfer to individual teams. Also, since football could (in some theories) be considered a public good, differences in taxation can occur, such as the introduction of a Lindahl tax. This is kind of a spread-out effect, because local businesses do benefit (Coase theorem).

Teams and owners do pay taxes, make no mistake about that. Think of the NFL as like a 32 man co-op.

 

[radcen]

I would like to see this brought up for official debate at least so the NFL would have to speak up and give their side. So far, they have been silent on the issue. I would like them to stand up and say, "No, we deserve this status because <insert reasons here>."

 

[specklebang]

Here's an opening. It could very well be liability transfer to individual teams. Also, since football could (in some theories) be considered a public good, differences in taxation can occur, such as the introduction of a Lindahl tax. This is kind of a spread-out effect, because local businesses do benefit (Coase theorem).

Teams and owners do pay taxes, make no mistake about that. Think of the NFL as like a 32 man co-op.

The technicalities are way over my head. Sure, I pay taxes and I've tried to be an "informed consumer". I don't expect "special breaks" and I don't like the way "non-profits" are used as tax free businesses. But I'm too ignorant of sports teams to have a valid opinion.

 

[Gipper]

The technicalities are way over my head. Sure, I pay taxes and I've tried to be an "informed consumer". I don't expect "special breaks" and I don't like the way "non-profits" are used as tax free businesses. But I'm too ignorant of sports teams to have a valid opinion.

No biggie. I don't work for the NFL so it's not like I have all the answers too. I don't know if football teams are really considered a "public good" or not, although I can kind of see why they would be.

Often a parent company has to pay through subsidiaries. Remember when GE caught crap about their tax liabilities? Well, I'm guessing that some of their subsidiaries were a tax burden, such as the network NBC (until 2011). If PepsiCo owed no taxes at Y/E, it doesn't mean that Frito-Lay or any of the freakin' dozens of fast food franchises they own won't carry a tax burden. Sometimes it gets spread out.