More Congressional Tax Legislation Targeting PGA-LIV Merger

The congressional outrage over the announced merger of the PGA Tour and the Saudi Arabian backed  LIV Golf continues.  Last week Senator Ron Wyden, Chairman of the Senate Finance Committee, introduced two bills in response. One - The Sports League Tax-Exempt Status Limitation Act - would go after the PGA Tour's tax-exempt status under 501(c)(6) by stripping that status from any sports organizations with assets exceeding $500 million. The other - The Ending Tax Breaks for Massive Sovereign Wealth Funds Act - would end the exemption from withholding for sovereign wealth funds with over $100 billion invested, with an exception for countries that have either a free trade agreement or a tax treaty with the U.S. and are not deemed by the State Department to be a "foreign country of concern." This would limit the bill's effect to about half-a-dozen countries, including not only Saudi Arabia but also Russia, China, Qatar, the United Arab Emirates, and Kuwait.

Lloyd Mayer