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.
Mar 29, 2015, 6:30 PM EDT
The Rockets won 99-91 in Washington.
Mar 29, 2015, 5:00 PM EDT
You needed this in your life.
Mar 29, 2015, 3:30 PM EDT
Obviously, the Spurs will match any offer he gets.
Mar 29, 2015, 2:00 PM EDT
This likely means the end of the Nate Robinson era.
Mar 29, 2015, 12:30 PM EDT
Most expect another lockout following the 2016-17 season.
Mar 29, 2015, 11:00 AM EDT
Great execution by the Blazers.
Mar 29, 2015, 9:30 AM EDT
Kanter found a way to motivate the Jazz in the dog days of the season, and the Thunder lost in part because of it.
Mar 29, 2015, 8:00 AM EDT
“You don’t have to be best friends to come out here and work together.”
Mar 29, 2015, 12:26 AM EDT
The Golden State Warriors are the team to beat out West.
Enes Kanter rips Jazz, calls his time there a ‘three-and-a-half-year frustration'; gets booed by fans
Mar 28, 2015, 11:00 PM EDT
Kanter was traded to the Thunder midseason.
Mar 28, 2015, 9:30 PM EDT
MJ’s still got it.
Lakers coach Byron Scott says opposing players have told him during games they’d ‘love to be in L.A. next year’
Mar 28, 2015, 8:00 PM EDT
Big, if true.
Mar 28, 2015, 6:30 PM EDT
Legislation was signed into law in Indiana last week, and has been criticized as one that could legalize discrimination.
Mar 28, 2015, 5:00 PM EDT
Hornets, still fighting for a playoff spot, catch a break.
Mar 28, 2015, 3:30 PM EDT
Van Gundy coached five seasons in Orlando, but was fired after the way the Dwight Howard debacle played out.
Mar 28, 2015, 2:00 PM EDT
Kerr was joking, and making light of a mini-controversy that occurred recently with the Cavaliers.
Mar 28, 2015, 12:30 PM EDT
Clark played key bench minutes the same day he was signed.
Mar 28, 2015, 11:00 AM EDT
Cuban went off after the Mavericks were blown out by the Spurs.
Mar 28, 2015, 9:45 AM EDT
Warriors keep rolling, while the Grizzlies are starting to feel like a first round loss.
Mar 28, 2015, 8:30 AM EDT
Highlight-reel play came near the end of a loss to the Nets.
- NBA players’ union head believes new labor deal can be reached without a work stoppage 4
- Kendrick Perkins says you’re blowing the LeBron James/Kevin Love thing way out of proportion 15
- Mark Cuban rips officials, NBA: ‘It’s criminal’ how Monta Ellis doesn’t get calls 23
- Shaquille O’Neal says he regrets leaving Magic for Lakers 43
- Cavaliers coach David Blatt: ‘LeBron James is our MVP’ 22
- No Durant, what does that mean for Thunder in these playoffs? Trouble. 15
- Kevin Durant to have third foot surgery; is done for season, playoffs 39
- Goran Dragic leading feisty Heat’s playoff push 29