GOP Tax Proposal To Hit MU Boosters

[Tugg Speedman]

If this passes then donations toward "points" will no longer be tax deductible.

Your College Football Team Is Very Worried About GOP Tax Reform
https://www.bloomberg.com/news/articles/2017-11-17/your-college-football-team-is-very-worried-about-gop-tax-reform
Donations tied to tickets would no longer be tax-deductible
Change could chill giving by 20 to 30 percent, economist says

The issue revolves around donations that confer the right to buy top-tier football and basketball tickets. Modeled after seat licenses in pro sports, these “contributions” have historically been 80 percent tax deductible and have become one of the three main revenue streams in college sports. Ticket sales and money earned from media rights are the other two.

The bill approved by the House Thursday would remove the tax incentive tied to those donations. Congressional tax writers say other kinds of tax relief in the bill are more important. “If seat license revenue is important to state-based colleges and universities, then states themselves can provide this tax benefit rather than federal taxpayers,” a House Ways and Means Committee spokesperson said in an email.

[jesmu84]

No big deal. Bye-bye student loan deductions, teachers buying school supply deductions, mortgage deductions...

As long as I still have my private jet deduction, I'm set.

[Jockey]

Sultan started the same thread 2 weeks ago. We don't need a duplicate.

[MU82]

In before the lock.

[GGGG]

To make the math easy, let's say you make a $1,000 donation for the right to buy $2,000 worth of tickets (total of $3,000) and that you are in the 25% marginal tax bracket.

Now you are able to claim $800 of the $1,000 as a charitable deduction.  25% of $800 = $200.  That means your true cost was actually $2,800...not $3,000.

What this would mean for the future is that the school would likely collect around $2,800 instead of $3,000.  (But likely more than $2,800 depending on the elasticity of the demand for tickets.)

[TSmith34, Inc.]

Very possibly the least odious provision in the tax bill.

[#UnleashSean]

Is this the same bill thats going to unnatural carnal knowledge grad students like me?

[reinko]

Is this the same bill thats going to unnatural carnal knowledge grad students like me?

Yup.

[Hards Alumni]

Not going to make it through the senate.  Who cares.

[TSmith34, Inc.]

Not going to make it through the senate.  Who cares.

Thoughts and prays to the bill

[MUBurrow]

Thoughts and prays to the bill

this is the good post.

[Plaque Lives Matter!]

Inspiring to see some relief for the long struggling coal miners and their private jets.

[Jay Bee]

Obama administration tried to nix the 80/20 rule as well. Went nowhere fast. Yawn.

[GGGG]

That's because the GOP Congress wouldn't pass anything during the Obama administration.  It's an easy way to generate revenue that isn't going to get a lot of people excited.  I am pretty sure this will be part of a final bill.

[Herman Cain]

If the tax proposals go through my tax bill will increase by approximately a net of $80,000. The state and local tax will hit hard and more than offset any benefit from rate changes.

Also I get hosed if I sell my residence as I will no longer benefit from the 500,000 cap gains exclusion.

Some day my kids will benefit from the estate tax changes .

[mu03eng]

If the tax proposals go through my tax bill will increase by approximately a net of $80,000. The state and local tax will hit hard and more than offset any benefit from rate changes.

Also I get hosed if I sell my residence as I will no longer benefit from the 500,000 cap gains exclusion.

Some day my kids will benefit from the estate tax changes .

[4everwarriors]

Honeycrisp moment, ai na?

[warriorchick]

If the tax proposals go through my tax bill will increase by approximately a net of $80,000. The state and local tax will hit hard and more than offset any benefit from rate changes.

Also I get hosed if I sell my residence as I will no longer benefit from the 500,000 cap gains exclusion.

Some day my kids will benefit from the estate tax changes .

I wish I made enough money for it to be possible for my taxes to go up by 80 grand at a top rate of 39.6%.
A nice fat donation to Marquette with no strings attached could help matters for you.

Also,  I wish I could sell my house for a half million more than what I paid for it.

[MUBurrow]

If the tax proposals go through my tax bill will increase by approximately a net of $80,000. The state and local tax will hit hard and more than offset any benefit from rate changes.

Also I get hosed if I sell my residence as I will no longer benefit from the 500,000 cap gains exclusion.

Some day my kids will benefit from the estate tax changes .

Its almost like there's a connection between the location of the houses people want to buy and the blue states hit hardest by eliminating the SALT deduction.

[warriorchick]

Its almost like there's a connection between the location of the houses people want to buy and the blue states hit hardest by eliminating the SALT deduction.

Gotta keep blue people in the blue states.

[reinko]

If the tax proposals go through my tax bill will increase by approximately a net of $80,000. The state and local tax will hit hard and more than offset any benefit from rate changes.

Also I get hosed if I sell my residence as I will no longer benefit from the 500,000 cap gains exclusion.

Some day my kids will benefit from the estate tax changes .

The estate tax is one of the easiest taxes to avoid, that's why I know you are full of shat.  No rich person worries about it, because it is joke, and not much more than  a conservative rallying cry about a death tax.

[Herman Cain]

The estate tax is one of the easiest taxes to avoid, that's why I know you are full of shat.  No rich person worries about it, because it is joke, and not much more than  a conservative rallying cry about a death tax.

Uninformed people say that the estate tax is easy to avoid. At certain levels that is true. As you can create trust structures to use each spousal exclusion. Currently that can get you around 11 million. The house and senate plan extend that to 22 million , with the house plan having a complete phase out in 6 years. Above the exclusion amounts it gets tricky as you have to do things like create Family limited partnerships to transfer ownership and spend a fortune on life insurance trusts etc. Of course you can create a foundation and completely avoid the estate tax as as well, but in that case your heirs are just controlling which charities your wealth goes to rather than govt directing it.

[MU82]

GOP tax cuts are always based on the premise that massive tax relief for rich people will spur dramatic economic growth. The Bush tax cuts led to sluggish growth and then a precipitous crash. Companies did not use the money saved from tax cuts to hire workers; most increased their shareholders’ dividends and bought back their own stock.

Trump’s chief economic adviser, Gary Cohn, was speaking at a CEO forum last week. He asked the executives to raise their hands if they would increase their capital investment if the tax cuts go through. Only a few hands went up.

“Why aren’t the other hands up?” Cohn asked, seemingly surprised. He should not have been surprised. Tax cuts rarely ignite investment and hiring. They mostly make the rich executives richer.

And as a bonus, they add to both the deficit and the debt.

Republicans hate legislation that adds to the deficit ... unless they're the ones pushing such legislation. Then, it's "deficits no matta."

[Jay Bee]

GOP tax cuts are always based on the premise that massive tax relief for rich people will spur dramatic economic growth. The Bush tax cuts led to sluggish growth and then a precipitous crash. Companies did not use the money saved from tax cuts to hire workers; most increased their shareholders’ dividends and bought back their own stock.

Trump’s chief economic adviser, Gary Cohn, was speaking at a CEO forum last week. He asked the executives to raise their hands if they would increase their capital investment if the tax cuts go through. Only a few hands went up.

“Why aren’t the other hands up?” Cohn asked, seemingly surprised. He should not have been surprised. Tax cuts rarely ignite investment and hiring. They mostly make the rich executives richer.

And as a bonus, they add to both the deficit and the debt.

Republicans hate legislation that adds to the deficit ... unless they're the ones pushing such legislation. Then, it's "deficits no matta."

^^^^ ban dis guy

[MU82]

^^^^ ban dis guy

JB, curious why you didn't advocate banning the previous posters. I waited to say a single word related to politics in this obviously political thread until numerous other posters - including you - did.

I'm sure you haven't noticed, but that's been my modus operandi for quite awhile now: Say nothing political unless others do.

I know you don't like me for some reason, but it's become so transparent lately. Seriously, what did I ever do to you? Feel free to PM me if you'd like.