Wednesday, September 11, 2013
Lately, debates regarding the NFL’s tax-exempt status are not uncommon. While the NFL has successfully defended its tax-exempt status as a § 501(c)(6) organization, many people still believe that the advantages of eliminating the NFL’s exemption sufficiently outweigh the disadvantages. In fact, some people argue that there are no real disadvantages of eliminating the NFL’s tax-exemption and that the NFL should follow the MLB’s lead and voluntarily give up its tax-exempt status.
Acknowledging that one goal of tax policy is economic efficiency, it is particularly interesting that § 501(c)(6) explicity lists “professional football leagues.” What it is about exempting “professional football leagues” that furthers the goal of economic efficiency? What arguments support the claim that there are no disadvantages of eliminating the NFL’s tax-exemption?