Today, the Tax Foundation released our new research on Initiative Petition 28 in Oregon, entitled “Oregon Initiative Petition 28: The Threat to Oregon’s Tax Climate.” If adopted, Oregon would rank worst in the nation on...
- The Tax Policy Blog
- California Senate Approves Tax Bill Aimed at Donald Sterl...
California Senate Approves Tax Bill Aimed at Donald Sterling
State Tax Notes today reports that the California Senate just approved a bill that would prohibit sports team owners from deducting professional fines as business expenses. The bill, which was approved 27 to 9, is aimed at Donald Sterling, owner of the Los Angeles Clippers, who made racially offensive comments this year resulting in a $2.5 million fine from the NBA. The bill would only affect team owners, not players.
I argued in June when the bill was introduced:
Sterling is awful, and I’d love to stick it to him, but it’s a little bit weird to bring the tax code into play here. Fines imposed on franchise owners have been a mixed bag: check out this list at ESPN. Sometimes they are for totally reprehensible behavior, like when Cincinnati Red’s owner Marge Schott said nice things about Hitler, but other times they are for things that concern the league and its politics, like when Michael Jordan and Micky Arison were fined for just talking about the NBA lockout.
I suppose I’m a purist; let’s leave the league governance to the leagues, and the tax code to the legislature. Put another way, I believe in the separation of sports and state.
The bill now goes to the Assembly.
Follow Scott on Twitter.
Get Email Updates from the Tax Foundation
We will never sell or share your information with third parties.
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.