[D]onations [to university sports programs] are subject to the same tax subsidy we reserve for charitable and educational institutions like hospitals, food pantries, arts organizations and universities. When a taxpayer at the 35 percent tax rate makes a donation of $10,000, he ends up shouldering only $6,500 of the cost, since his tax bill is trimmed by $3,500. That savings to the taxpayer amounts to reduced tax collections by the Treasury. Considering that the top college athletic programs collected a total of more than a billion dollars in 2008, the revenue hit from making these gifts tax deductible is not inconsequential… With the nation facing gigantic federal deficits for years to come, isn’t it time for major college sports programs to get by without this subsidy?
Charles Clotfelter – like many wise men and women before him – takes note of the college sports tax subsidy… But, you know… Put his limp rhetorical question (isn’t it time…??) up against the strapping lads of the US Congress and tell me how likely you think it is that the subsidy will be removed.