Nonsense. Under what specific tax-designations would you find such a difference?
Please enumerate the ways in which the NFL (specifically, the non-profit group being discussed) engages in for-profit activities, as defined by Internal Revenue Service.
Just because its your perception doesn’t mean its reality. There are many types on nonprofit organizations. Just because you think they all should be charities doesn’t make it true. The IRS has separate designations for the different types. A 501(c)(3) is a charity. A 501(c)(6) is a nonprofit corporation. So all the wealthiest businessmen in town have to pay taxes on their profits. But when they get together as the local Chamber of Commerce the CoC is a nonprofit corporation. But no one thinks they are a charity. Here is a brief list of all the different types of nonprofits. Charities are only one type.
Chamber of Commece. Bar Association. Real Estate Board.
I’m still trying to figure out what exactly the OP thinks the NFL should be paying. The individual teams do pay income tax, since they are the ones who get the TV revenue, ticket revenue, merchandise revenue, and other revenue streams. The NFL itself is really just administrative entity to facilitate the activity of all the teams. If you think there is profit for the NFL then it must be SOMEBODY’s profit. Somebody somewhere must own the NFL, but no shareholders do. There are no individual investors who do.
…as per their agreements with the city and taxpayers who are footing that bill. What’s your point, and what does it have to do with the NFL being a non-profit organization?
It’s any 501(c) 6 organization really. The point is that the individual lawyers, realtors, football clubs, etc…are individually taxed.
You’re just butthurt because the NFL is just a high-dollar one of these, and because you have a personal axe to grind with sports.
Beyond that, it seems kind of idiotic for the teams to fund the NFL league office, and then have the league office get taxed. Everything they do is for the member teams, not for generic customers, and they’re funded by the teams themselves.
The designation of the league office as a nonprofit entity must have some benefit to the NFL teams, or they would not have lobbied for it in 1966, and would not use it today. If the league office truly earned no profits, its designation as for-profit or non-profit would be irrelevant.
But, the league office does earn a profit, by charging more in team dues, most years, than it pays out in expenses. This by itself doesn’t make it a non-profit; the non-profit curling club to which I belong makes a similar “profit” most years. But with my curling club, the accumulated revenue (“retained earnings” if it were for profit) sits in a bank account for the future benefit of the club, not for the benefit of any individual member/owner.
Not so with the NFL retained earnings. The accumulation goes into a stadium fund which is used to make interest-free loans to individual teams. The non-profit status of the league provides a shelter to accumulate untaxed retained earnings. Bar associations, chambers of commerce, and curling clubs don’t make interest-free loans to their members.
I understand that this issue lends itself to hype; the average person hearing that “the NFL is non-profit” thinks this means the league and all of its teams are non-profit, which is of course not the case. The profit sheltered by the league is a tiny fraction of total pro football profit. But, it is not zero, and this special status should be ended.
Flat Tax
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Fixed
The 1% is completely behind you, nut jobs like Warren Buffett aside. You might stop to consider why.
Yep, you’re right, it’s all about me, and as Ray D. Tutto I hereby abolish all paid sports involvement.
Schmuck.
Where do you get that the loans are interest-free?
There are several types of flat tax that would be more beneficial to the 99% than the 1%. Couple this with the fact that a simplified code would eliminate a tax code that is legendary in its size and complexity.
From the article linked by the OP:
I must be blind because I do not see that quote in the link.The G-4 is actually explicit that there will be interest payments, although it does not specify what it will be exactly, just that it will be determined at the time of the loan, which could be zero.
Edit: Nevermind, I see you are referring to the OP and not the link in your article, sorry.
Yep. And other 501(c)6 organizations make a “profit” too. If they didn’t there wouldn’t be a point to having the organizations. They use the money raised in dues for lobbying purposes in many cases. The outrage over the issue is mostly because people think nonprofit = charity. It doesn’t.
chargerrich, what makes you think that a flat tax would be any simpler than what we have right now? In either system, the complexity all comes from figuring out what your taxable income is. Once you have that, it’s really simple to calculate the tax owed, in either system.
The quote was from a second embedded article in the OP. The original article which is an opinion column is here.
Exactamundo. And the outrage over the NFL seems to be some combination of outrage at the financial scale of the league, and (to me at least), some sort of sour grapes against sports or football in particular that probably dates back to people’s high school days.
Nobody complains about the AMA spending about 20 million on lobbying, and yet it’s a 501(c) 6 organization just like the NFL league office. And that 20 million would be considered profit if it weren’t plowed into lobbying, which is IMO, more reprehensible than putting it in a fund to provide advantageous loans for member clubs. Especially when that lobbying is against things like ICD10 coding and other infrastructural improvements.
http://www.opensecrets.org/orgs/summary.php?id=D000000068
It’s the sports & entertainment angle that has people’s panties in a wad.
Right, but besides other sports leagues, Chamber of Commerce. Bar Association. Real Estate Board and all other 501(c) 6 organizations, who else is a nonprofit that manages for profit organizations?
Just like I thought.