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.
Aug 22, 2014, 12:59 AM EDT
This had been expected.
Aug 21, 2014, 8:59 PM EDT
Knicks finally considering the importance of developing young talent for the future.
Aug 21, 2014, 7:31 PM EDT
Wiggins too, while guys like Alexey Shved will be sent to the Sixers.
Aug 21, 2014, 6:12 PM EDT
Gone are the days when Shaq would have used this as an opportunity to take a shot at Kobe.
Aug 21, 2014, 5:02 PM EDT
Why give up assets now, when either player could be signed outright as an unrestricted free agent next summer?
Aug 21, 2014, 3:59 PM EDT
Stephen Curry: “We’re still taking applications.”
Aug 21, 2014, 3:04 PM EDT
He denied this yesterday.
Aug 21, 2014, 1:59 PM EDT
Video of Durant telling this humorous story.
Aug 21, 2014, 1:08 PM EDT
Silver says it’s ultimately the individual athlete’s personal choice.
Aug 21, 2014, 12:10 PM EDT
Being Jeremy Lin’s parent must be an interesting experience. What do you say to him to correct him.
Aug 21, 2014, 11:30 AM EDT
It’s a great move, one Irving pulls off almost ever game.
Aug 21, 2014, 10:45 AM EDT
Patience is the right play here. And patience is never popular with any fan base.
Aug 21, 2014, 10:15 AM EDT
Coming back off foot surgery, this is a good thing.
Aug 21, 2014, 9:45 AM EDT
Blatt can coach, but if it takes a season for the Cavaliers to find their identity (as it did with LeBron in Miami) will he get the chance to stick around for it?
Aug 21, 2014, 9:16 AM EDT
If you’re now rebuilding in Minnesota, why trade Bennett?
Aug 21, 2014, 8:44 AM EDT
Drummond is still a likely cut,
Aug 21, 2014, 8:00 AM EDT
It’s all business for KD with Roc Nation getting in the act.
Aug 21, 2014, 1:33 AM EDT
He also was a scoring machine at the showcase in Las Vegas.
Aug 20, 2014, 11:15 PM EDT
16 players will practice and be available for Friday’s game against Puerto Rico, but the roster needs to be trimmed to 12 in advance of the FIBA World Cup.
- Adam Silver: NBA stars playing in international competition face ‘a big risk’ 12
- Derrick Rose says he’ll play Friday vs. Puerto Rico 11
- Report: Don’t be so sure on Anthony Bennett to Philadelphia rumors 54
- Report: Nike gets chance to match 10-year, $265 million offer to Kevin Durant from Under Armour 17
- Should NBA coaches get NFL style challenge flags? 18
- Report: Suns discussing trade possibilities for Eric Bledsoe 34
- Report: Sixers may look to trade for Amar’e Stoudemire at this season’s deadline 32
- Kevin Durant reiterates that rest was his reason for withdrawing from Team USA 11