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Feds Mull Taxing College Sports, but Pickings Are Slim

By Harry Kimball,  Newser Staff

Posted Jun 1, 2009 1:38 PM CDT
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(Newser) – The Congressional Budget Office, eager for new sources of income, is considering taxation options for the nation’s collegiate athletic franchises, the Economist reports. Among the proposals are curtailing deductions for charitable donations to college sports programs; limiting tax-exempt bonds; and, most drastically, stripping the programs of their traditional tax-exempt status. But only the first idea will produce any real revenue.

Because donations are usually made by hardcore fans—and tied to preferential treatment—a tax will likely not result in decline of season-ticket buyers and thus help government coffers. But though college athletics do pull in millions of dollars, each school’s share is small, and many programs run at a loss. Forcing schools to pony up for their sports income may produce less than the government expects.

A scene from a Florida State v. Wisconsin game.
A scene from a Florida State v. Wisconsin game.   (AP Photo)
College basketball.
College basketball.   (AP Photo)
A sparse crowd watches Charlotte and Purdue play a first-round women's NCAA college basketball tournament game in Chattanooga, Tenn.
A sparse crowd watches Charlotte and Purdue play a first-round women's NCAA college basketball tournament game in Chattanooga, Tenn.   (AP Photo)
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COMMENTS
Showing 3 of 5 comments
wwwonderer
Jun 2, 2009 7:48 AM CDT
"The Congressional Budget Office, eager for new sources of income, is considering taxation options for..." *MEGA CHURCHES/MILLIONAIRE PREACHERS WALK AWAY AND WHISTLE*
ClingingToHope
Jun 1, 2009 9:07 AM CDT
It's "high" school. Apparently, you will not be affected either unless they start taxing Obama Blinders. The KEY POINT is that Chairman Barry said he would only raise taxes on the WEALTHIEST Americans. He is a liar, plain and simple. Wait for the VAT, oops...sorry, Value Added Tax that the liberal fascists are proposing which will tax the poorest among us the most.
AnnieChrist
Jun 1, 2009 9:00 AM CDT
since you apparently didn't read, or couldn't comprehend, what the article plainly states, here are the key points: 'Among the proposals are curtailing deductions for charitable donations to college sports programs; limiting tax-exempt bonds; and, most drastically, stripping the programs of their traditional tax-exempt status.' I find it hard to believe you finished hi school, much less college, I doubt you will be affected by this proposal.

 
NCAA • recession • athletics • college sports • college basketball • Obama administration • taxation • college football

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