May 8, 2014, 11:59 AM EST
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.
Dec 19, 2014, 5:15 PM EST
Lakers star: ‘If the opportunity came up, then that’s the time to have that discussion’
Dec 19, 2014, 4:29 PM EST
Black-and-white version of Toronto’s new logo looks similar to Brooklyn’s
Dec 19, 2014, 3:44 PM EST
President wants to see more athletes take political stands
Dec 19, 2014, 2:56 PM EST
This gives the Rockets a little more depth on the wing with Harden and Ariza.
Dec 19, 2014, 2:15 PM EST
Thunder star sprained ankle against Warriors
Dec 19, 2014, 1:40 PM EST
Miller starting against Nets in first game back from concussion
Dec 19, 2014, 1:04 PM EST
Sending Wright to the Celtics leaves major hole at backup center
Dec 19, 2014, 12:28 PM EST
Mark Cuban is too smart to pull the trigger on this kind of deal unless he has word he can keep his man.
Dec 19, 2014, 11:51 AM EST
Heat and Nets among teams that showed interest
Dec 19, 2014, 11:15 AM EST
Mavericks owner, one of many celebrities singing off Stephen Colbert, had his priorities in line
Dec 19, 2014, 10:15 AM EST
The Bulls are better off with their depth and flexibility.
Dec 19, 2014, 9:44 AM EST
Greek Freak makes diving steal again Kings
Dec 19, 2014, 9:08 AM EST
Warriors forward blows dunk, does everything else right in win over Thunder
Dec 19, 2014, 8:30 AM EST
Chris Kringle channels his inner-Allen Iverson
Dec 19, 2014, 8:00 AM EST
He will get another shot at being a head coach in the NBA. He deserves it.
Dec 19, 2014, 1:01 AM EST
Rondo moves the Mavs into contender status in the West. Problem is that is a crowded field.
Dec 19, 2014, 12:46 AM EST
The team officially described the sprain as “mild.”
Dec 19, 2014, 12:02 AM EST
Makes the haul even less impressive for Boston.
Dec 18, 2014, 11:00 PM EST
Phil responds to an article ripping the Knicks for making the deal.
Dec 18, 2014, 10:00 PM EST
Bryant’s contract runs through 2016.
- Report: Minnesota agrees to trade Corey Brewer to Houston 2
- Dallas moves into title contender status with addition of Rajon Rondo 41
- Kevin Durant turns ankle, leaves game not to return; X-rays negative. 4
- Report: Celtics ‘pretty pleased’ with return they got in trade for Rajon Rondo 31
- PBT Extra: Jabari Parker’s injury, what does it mean for Bucks, Rookie of Year race? 4
- Reports: Celtics agree to trade Rajon Rondo to Dallas Mavericks 39
- Andrew Bogut undergoes PRP therapy on knee, out indefinitely 9
- Report: Mavericks trading for Rajon Rondo could happen ‘sooner rather than later’ 10