The NFL and Your Tax DollarsTax Professionals' Resource
November 20, 2013 — 1,448 views
It almost seems as though low and middle income households work day and night to ensure that millionaires receive tax benefits. The NFL is classified as a non-profit organization and is exempt of any tax by the IRS. In fact, it has been free of tax liability since it started back in 1942. Perhaps at that time the tax exemption was to benefit players so that football could become more prominent than it was.
However, in 1966, the Congress changed the law so that it had a specific provision which listed professional football leagues under the 501 (c) clause of the IRC (Internal Revenue Code). Organizations that fall under the 501 (c) (6) of the IRC are considered business leagues that promote a single business interest that is common to all of them, but do not engage in a normal kind of business that is interested in gaining profits.
The NFL is a Non-Profit Organization as Per the IRC
While the organization claims that this is still its aim, and has effectively found a loophole in the IRC, it seems unjust that the leagues can go scott-free and remain avoiding taxes. It is also sensible to demand tax now that the NFL has become such a huge deal. On top of this, the government is faced with a massive hole in its pockets due to the fiscal deficit.
Gaining a little extra income from such a large taxable source would allow it to focus its funds on other things like health care services and facilities that it is now forgoing in its $80 billion budget cut. To avoid taxes, the NFL registers itself as a trade association that simply promotes the interests of the 32 clubs under it.
Unequal System Where Rich are Exempted from Having to Pay Taxes
Above all this, the league also mentions in its tax form that it has access to a $621 million receivable loan as per lending programs for its member teams for the stadiums. The loans are also given out at extremely low interest rates so that the supposed NPO can save on funds.
Organizations that are exempted from taxes should not be allowed to use funds for private means. Experts on law are now bringing up such issues and demanding an equal system, where individual citizens are not over-taxed for the sake of giving grants and benefits to the very rich.