May 8, 2014, 11:59 AM EDT
The NBA calls its financial penalties “fines,” but they’re really forced charitable donations. They’re also, as Lamar Odom successfully argued to the IRS, business expenses.
You can bet Donald Sterling will try to write off his $2.5 million fine on his taxes.
On both the federal and state levels, lawmakers want to prevent that.
Any deduction is just not right, say six House Democrats. So they’ve introduced the Stop Penalizing Taxpayers for Sports Owner Fouls Act of 2014.
The bill, which would apply to fines since Jan. 1, says:
In the case of an individual who owns (directly or indirectly) a professional sports franchise, no deduction shall be allowed under sub- section (a) for any fine or similar penalty paid to the professional sports league or association of which the franchise is a member.’’.
This would apply to Sterling – and was obviously proposed with him in mind.
As unsympathetic as Sterling is, I just don’t believe this law would be constitutional. If passed – which I suspect is unlikely to happen anyway – the courts could deem it ex post facto. In other words, the law punishes for acts committed before the law passed, usually a method not allowed in the United States.
Plus, I don’t like further complicating an already far-too-complicated tax code with a specific rule that singles out sports owners. Why should sports owners have their own tax code? What makes them different than the rest of us? (Yes, I’m against stadium subsidies, too. Don’t fix that problem by creating another.)
California lawmakers are proposing something similar. Phil Willon of the Los Angeles Times:
Two state Assembly members from Los Angeles filed legislation Tuesday that would prevent sports team owners from writing off league fines as a business expense when they file their state income tax returns.
The bill was filed by Democratic Assemblymen Raul Bocanegra of Pacoima and Reggie Jones-Sawyer of Los Angeles.
“Donald Sterling’s outrageous comments and historic fine should not be rewarded with a multimillion-dollar tax refund,” said Bocanegra, who chairs the Revenue and Taxation Committee. “This fine is intended as a punishment; it should not be used as a tax loophole.
The specifics of this bill are not clear, but I have the same concerns stated above.
At least one politician, though, might be on the right track – actually using the Sterling situation to do good. Willon:
Meanwhile, Rep. Brad Sherman (D-Sherman Oaks) has asked city, state and federal regulators to “prioritize” inquiries into any allegations that Sterling’s companies engaged in racial discrimination against people who sought to rent apartments at the billionaire’s residential properties.
In a letter to the regulators, Sherman cited a payment of more than $2.7 million that Sterling made in 2009 to settle federal claims that he discriminated against tenants. Sherman’s letter did not say there were allegations pending against Sterling or his companies.
If there aren’t new allegations against Sterling, it would be difficult to do much now after he’s settled, but yeah, the government should definitely be further investigating Sterling’s alleged housing discrimination. While they’re at it, apply that level of scrutiny to everyone – not just the headline-inducing Sterling – suspected of housing discrimination. That actually matters.
Jul 30, 2014, 1:30 AM EDT
Cavaliers guard says initial response stemmed from his straightforward approach, confidence
Jul 30, 2014, 12:30 AM EDT
Collective Bargaining Agreement limits offseason charity games to United States and Canada
Jul 29, 2014, 11:33 PM EDT
Union voted in Michele Roberts instead
Jul 29, 2014, 10:33 PM EDT
Popovich signed contract extension with Spurs this offseason
Jul 29, 2014, 9:44 PM EDT
“That 2010 team was one of the best experiences I’ve ever had. I think we have a team that’s even better.” —Kevin Durant
Jul 29, 2014, 8:50 PM EDT
Orlando reportedly plans to send former Pistons point guard to D-League
Kevin Durant knows you’re talking about his free agency but isn’t giving many clues. He liked what LeBron did.
Jul 29, 2014, 7:51 PM EDT
“I just tell everybody that I’m here in Oklahoma City, I love it here. Who knows what will happen.” —Kevin Durant on his 2016 free agency.
Jul 29, 2014, 7:11 PM EDT
Bledsoe reportedly resents how differently Pistons, Jazz and Rockets treated their restricted free agents
Jul 29, 2014, 6:22 PM EDT
CSKA-Moscow wants to poach Scott from Atlanta Hawks
Jul 29, 2014, 5:37 PM EDT
Johnson gets NBA contract after eventful summer league
Jul 29, 2014, 4:55 PM EDT
I’m not sure Love is taking advice from Minnesota right now
Jul 29, 2014, 4:11 PM EDT
Lakers introduce Scott as new coach in press conference
Jul 29, 2014, 3:24 PM EDT
Rose said he was disappointed but he understands ‘Melo’s decision.
Jul 29, 2014, 2:22 PM EDT
Want to see LeBron strip down to his underwear?
Jul 29, 2014, 1:44 PM EDT
Lakers guard confirms he’s planning on retirement
Jul 29, 2014, 1:11 PM EDT
Donald Sterling isn’t going away, but he’s pretty much done as the Clippers owner now.
Jul 29, 2014, 12:28 PM EDT
Yes, you read that headline correctly
Jul 29, 2014, 12:22 PM EDT
The question with Cousins is never talent, but his maturity seems to be there.
Jul 29, 2014, 11:44 AM EDT
Jason Kidd or Byron Scott could hire former Seattle SuperSonic
Jul 29, 2014, 11:11 AM EDT
Irving wouldn’t get full 30 percent of adjusted salary cap by triggering Derrick Rose rule
- Durant says 2014 USA team better than 2010 version that won gold 4
- Kevin Durant knows you’re talking about his free agency but isn’t giving many clues. He liked what LeBron did. 16
- Byron Scott makes ridiculous optimism sound reasonable 40
- Derrick Rose told Carmelo Anthony that if he came to Chicago “the game would be easy” 40
- LeBron James strips on stage, throws clothes into crowd (video) 23
- Is DeMarcus Cousins the big man Team USA can lean on? 19
- Lakers make it official — finally — and hire Byron Scott as head coach 13
- Derrick Rose: “I’ve become a smarter player, but I’m mad it took me seven years to learn it.” 29