Wednesday, Could 18, 2022
Utilizing The Inner Income Code To Restrict Teaching Salaries: A Proposal To Carry Amateurism Again Into School Soccer
Blaire Mikesell (J.D. 2022, Indiana-Maurer), Notice, Utilizing the Inner Income Code to Restrict Teaching Salaries: A Proposal to Carry Amateurism Again into School Soccer, 97 Ind. L.J. 393 (2022):
Since formal collegiate athletic competitions started in 1852, they’ve gained recognition and grow to be a mainstay in American tradition. This rise in recognition coupled with elevated media protection allowed faculty athletics, and significantly faculty soccer, to develop right into a profitable enterprise that generates billions of {dollars} in income every year. Schools and establishments earn this athletic income as tax-free revenue as a result of their tax-exempt standing beneath the Inner Income Code § 501(c)(3) tax-exemption statute. The fundamental coverage underlying this statute is as follows: schools and universities present an necessary profit to the general public by offering training, and in change for that offered profit, the IRS doesn’t tax educationally associated revenue. Presently, revenue generated by faculty athletics is educationally associated and thus is earned beneath the tax-exempt standing of the college.
Due to the NCAA’s present amateurism requirement, schools can not use any of that income to pay student-athletes, and as a substitute, many of the revenue generated by faculty athletics is paid to school coaches or invested in athletic amenities. This has created an “arms race” through which colleges compete for athletic expertise by hiring the very best coaches and constructing the nicest athletic amenities. This “arms race” has brought on teaching salaries to rise exponentially. The salaries coaches at the moment make are out of line with salaries paid to some other educational personnel employed by a college. This Notice argues that this disparity must be regulated by the Inner Income Code. Congress ought to go a brand new part of the Code that requires universities and schools to restrict head teaching salaries to an quantity extra consistent with the wage quantities paid to different, comparable college personnel if these colleges wish to retain their tax-exempt standing.
https://taxprof.typepad.com/taxprof_blog/2022/05/using-the-internal-revenue-code-to-limit-coaching-salaries-a-proposal-to-bring-amateurism-back-into-.html
