Cory Booker introduces bill to strip NFL of tax-exempt status
Amid uproar over the N.F.L.’s handling of domestic abuse cases involving some of its players, Senator Cory Booker (D-NJ) has introduced a bill that would disallow major professional sports leagues, most notably the NFL, from claiming status as tax-exempt nonprofits.
The bill is aimed at raising $100 million over 10 years, according to Booker’s office, which would be used to pay for state domestic abuse programs across the country. It is unlikely to gain widespread support.
Under the tax code, NFL teams pay taxes, but the league office, which is funded by dues from its franchises, does not. The league has enjoyed this status, which is similar to those granted to industry associations, since the 1960s.
Other prominent leagues that have a similar status, including the NHL and the women’s and men’s golf and tennis associations, would also be affected.
But, the bill, called the Securing Assistance for Victim Empowerment (SAVE) Act, faces a steep slope to passage. Closing this so-called loophole, which exists under 501(c)(6) of the Internal Revenue Code, has been a hobbyhorse of the retiring Senator Tom Coburn (R-OK), who pushed for such a bill but was repeatedly unable to gain co-sponsors.
Should the bill gain traction this time, it would be evidence that the recent spate of scandals has emboldened foes of the NFL on Capitol Hill, who acknowledged that the amount of dollars saved is small but the symbolism is large.
Separately Tuesday, Senator Maria Cantwell, Democrat of Washington, introduced a bill to strip the NFL of its tax-exempt status. She was motivated by the Washington Redskins’ failure to change their name, which some view as an offensive reference to Native Americans.
Booker’s bill would apply to the 10 sports leagues and organizations with annual revenue over $10 million that claim this exemption. Major League Baseball and the NBA do not claim it.
source wonders why the hell they were allowed tax-exempt status in the first place...
The bill is aimed at raising $100 million over 10 years, according to Booker’s office, which would be used to pay for state domestic abuse programs across the country. It is unlikely to gain widespread support.
Under the tax code, NFL teams pay taxes, but the league office, which is funded by dues from its franchises, does not. The league has enjoyed this status, which is similar to those granted to industry associations, since the 1960s.
Other prominent leagues that have a similar status, including the NHL and the women’s and men’s golf and tennis associations, would also be affected.
But, the bill, called the Securing Assistance for Victim Empowerment (SAVE) Act, faces a steep slope to passage. Closing this so-called loophole, which exists under 501(c)(6) of the Internal Revenue Code, has been a hobbyhorse of the retiring Senator Tom Coburn (R-OK), who pushed for such a bill but was repeatedly unable to gain co-sponsors.
Should the bill gain traction this time, it would be evidence that the recent spate of scandals has emboldened foes of the NFL on Capitol Hill, who acknowledged that the amount of dollars saved is small but the symbolism is large.
Separately Tuesday, Senator Maria Cantwell, Democrat of Washington, introduced a bill to strip the NFL of its tax-exempt status. She was motivated by the Washington Redskins’ failure to change their name, which some view as an offensive reference to Native Americans.
Booker’s bill would apply to the 10 sports leagues and organizations with annual revenue over $10 million that claim this exemption. Major League Baseball and the NBA do not claim it.
source wonders why the hell they were allowed tax-exempt status in the first place...