STrib: Trump's tax plan would cost the Gophers millions in taxes, donations

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BleedGopher

BleedGopher

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per Joe:

The new tax bill awaiting President Donald Trump’s signature would add a tax to nonprofit organizations with employees making more than $1 million per year, meaning the Gophers likely have a new bill coming for football coach P.J. Fleck (whose salary averages $3.5 million) and men’s basketball coach Richard Pitino ($1.7 million).

This excise tax on those two salaries would cost the Gophers $672,000 per year.

Gophers officials on Thursday were working to grasp the full impact of the federal tax bill, one day after the House gave final approval, with Trump expected to sign it into law.

“The impact right now is to be determined, but there will be an impact,” said Jake Ricker, the Gophers’ director of strategic communications. “It’s a challenge that’s going to face every school in a Power Five conference.”

The University of Minnesota and other nonprofit organizations would pay a 21 percent excise tax on annual compensation above $1 million for the five highest-paid employees. At Minnesota, the only two athletic department employees making more than $1 million are Fleck and Pitino.

Michigan’s excise tax, for comparison, will be about $1.75 million per year, with football coach Jim Harbaugh ($7 million salary) and men’s basketball coach John Beilein ($3.37 million). Iowa’s tax will be about $911,000 for Kirk Ferentz and Fran McCaffery, and Wisconsin’s will be about $620,000 for Paul Chryst and Greg Gard.

“I don’t think this is going to impact coaches’ salaries,” said Tom McMillen, president of the LEAD1 Association, a organization that represents athletic directors. “I think schools are going to start cutting things that aren’t core to the business, and that could mean cutting from Olympic sports.”

http://www.startribune.com/trump-s-...ophers-millions-in-taxes-donations/465781063/

Go Gophers!!
 



Bring back the Axe said:
Are public institutions considered non-profit organizations ?
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https://www.quora.com/Is-public-university-a-non-profit-organization

Yes, public universities are usually non-profit organizations.

People often find this hard to believe because universities and colleges have a large revenue stream. The amount of revenue an organization generates, though, has nothing to do with its non-profit status. What makes an organization a non-profit (besides filing the proper paperwork) is that it is set up to deliver on a mission, not make a profit.

Most non-profits provide a service, or a product, at a discount to the actual price so they can provide a benefit to the public in service to their mission. This is why non-profits fundraise. Without fundraising colleges and universities would have to charge even more. Some universities have been so successful with their fundraising that they don't even have to charge tuition to many of their students, a huge benefit to society.
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Good. Hopefully this somewhat stifles pay for coaches and university presidents.
 



Gopherguy0723 said:
Good. Hopefully this somewhat stifles pay for coaches and university presidents.
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Don't know if that will happen, but that would be a great thing.

It's a byproduct of how much money the top college programs pull in, yet they have to make it "appear" like the athletic dept isn't turning a (significant) profit, so they spend gobs of money on whatever they can, including paying huge sums to hire coaches.

Everything and anything .... except paying the players. :rolleyes:
 

Doesn’t change a thing. There is the same incentive/disincentive to keep/trashbin non-rev sports. The coach salaries passed the 1 million rubicon years ago. “Non-profit” has always been a bit of a misnomer.
 

Isn't the NFL a non-profit that pays its Commissioner over $44M per year?
 




Trump cut my taxes. Maybe I can afford to go to another football game.
FYI, non profit is a shell game.
 

jrock said:
Trump cut my taxes. Maybe I can afford to go to another football game.
FYI, non profit is a shell game.
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I wouldn’t be so sure of that..... unless you are into real estate or have a simple pass through Corp, your taxes will eventually be higher. Remember all of the personal “tax cuts” for regular income people are temporary! Let’s see who fits those special situations.... hummm. I wonder who...., if only he got another tax cut for being orange....


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MaxyJR1 said:
Isn't the NFL a non-profit that pays its Commissioner over $44M per year?
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That is such a tired line. The NFL was only non-profit because all income passes through to the 32 teams. Acting like they were claiming to be a charity to get away with not paying taxes is ridiculous.
 



alchemy2u said:
I wouldn’t be so sure of that..... unless you are into real estate or have a simple pass through Corp, your taxes will eventually be higher. Remember all of the personal “tax cuts” for regular income people are temporary! Let’s see who fits those special situations.... hummm. I wonder who...., if only he got another tax cut for being orange....


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Speaking of taxes, you may pay a little more or you may pay a little less but big picture thinking shows me that most peoples 401k's have increased by at least 25% since Trump won the election, all in anticipation that taxes would be cut. So you can get nitpicky on the tax issues but if that is where all your focus is then most are missing the big picture and the big opportunities that come with a booming economy.
 

HoustonTXGopher said:
Speaking of taxes, you may pay a little more or you may pay a little less but big picture thinking shows me that most peoples 401k's have increased by at least 25% since Trump won the election, all in anticipation that taxes would be cut. So you can get nitpicky on the tax issues but if that is where all your focus is then most are missing the big picture and the big opportunities that come with a booming economy.
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I wonder if it’s been quiet around here because folks are busy forming REITs, pass through entities, c-corps and other ways to game this loophole-fest. Gotta love the earnestness of the performers.
 

Pompous Elitist said:
I wonder if it’s been quiet around here because folks are busy forming REITs, pass through entities, c-corps and other ways to game this loophole-fest. Gotta love the earnestness of the performers.
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The former corporate tax code WAS a horrible "loophole fest". I know, because I've worked as a financial consultant for medical device manufacturing companies that moved the bulk of operations out of country because of the massive tax savings (look up medical device operations in Ireland and Coasta Rica as an example). A new corporate tax code was due for overhaul for decades. The previous U.S. corporate tax code was one of the worst in the industrialized world. As for the supposed new $670K tax liability from coaches' salaries mentioned in a previous post, that will be (maybe already has been?) exponentially offset by UofMN endowment fund increases and maybe other revenue increases due to the expected tax code change.

I have a good well-meaning friend (a hard core Democrat) who is bitching about the $200-$300 increase in federal income taxes he's going to get because he can't write off property taxes. Meanwhile, his 401K increased likely by at least $50,000 this year largely because of the potential corporate tax code reform that is now reality. ......rant ended. I'm sick of politics.
 

Panthadad2 said:
The former corporate tax code WAS a horrible "loophole fest". I know, because I've worked as a financial consultant for medical device manufacturing companies that moved the bulk of operations out of country because of the massive tax savings (look up medical device operations in Ireland and Coasta Rica as an example). A new corporate tax code was due for overhaul for decades. The previous U.S. corporate tax code was one of the worst in the industrialized world. As for the supposed new $670K tax liability from coaches' salaries mentioned in a previous post, that will be (maybe already has been?) exponentially offset by UofMN endowment fund increases and maybe other revenue increases due to the expected tax code change.

I have a good well-meaning friend (a hard core Democrat) who is bitching about the $200-$300 increase in federal income taxes he's going to get because he can't write off property taxes. Meanwhile, his 401K increased likely by at least $50,000 this year largely because of the potential corporate tax code reform that is now reality. ......rant ended. I'm sick of politics.
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His 401k must be heavily unbalanced in the stock market, then. Sure, ride the bubble ... until it bursts and he loses everything. Hopefully he has time enough to build back up.

I'm fine lowering the corporate tax rate to be competitive with the world ... but then income taxes on the wealthy should have been jacked up so as to, at the very least, not increase the national debt.

And it's quite obviously a political thread to its core. If mods (they exist on this board, right?) want to move it to another board, so be it.
 

Panthadad2 said:
The former corporate tax code WAS a horrible "loophole fest". I know, because I've worked as a financial consultant for medical device manufacturing companies that moved the bulk of operations out of country because of the massive tax savings (look up medical device operations in Ireland and Coasta Rica as an example). A new corporate tax code was due for overhaul for decades. The previous U.S. corporate tax code was one of the worst in the industrialized world. As for the supposed new $670K tax liability from coaches' salaries mentioned in a previous post, that will be (maybe already has been?) exponentially offset by UofMN endowment fund increases and maybe other revenue increases due to the expected tax code change.

I have a good well-meaning friend (a hard core Democrat) who is bitching about the $200-$300 increase in federal income taxes he's going to get because he can't write off property taxes. Meanwhile, his 401K increased likely by at least $50,000 this year largely because of the potential corporate tax code reform that is now reality. ......rant ended. I'm sick of politics.
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All of it is irrelevant to $1.5 trillion added to the national debt. It was a major mortgaging the future for some selfish tax cuts for today. The property tax write off change is a large fed subsidy to the states that have no services for their people. It rewards the “taker states” that already get more from the feds than they contribute. The 401K has been increasing for several years, not all of the current run up is because of some unpaid for tax cuts that nobody has read or understand.


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Since when does debt matter? It apparently hasn't for the last 40+ years.
 

Panthadad2 said:
The former corporate tax code WAS a horrible "loophole fest". I know, because I've worked as a financial consultant for medical device manufacturing companies that moved the bulk of operations out of country because of the massive tax savings (look up medical device operations in Ireland and Coasta Rica as an example). A new corporate tax code was due for overhaul for decades. The previous U.S. corporate tax code was one of the worst in the industrialized world. As for the supposed new $670K tax liability from coaches' salaries mentioned in a previous post, that will be (maybe already has been?) exponentially offset by UofMN endowment fund increases and maybe other revenue increases due to the expected tax code change.

I have a good well-meaning friend (a hard core Democrat) who is bitching about the $200-$300 increase in federal income taxes he's going to get because he can't write off property taxes. Meanwhile, his 401K increased likely by at least $50,000 this year largely because of the potential corporate tax code reform that is now reality. ......rant ended. I'm sick of politics.
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Well, I’ll give you the benefit of the doubt and it’s clear some things have been simplified while opening up a vast number of other things for abuse. Look, every legislative decision has winners and losers. I’m not being political, it’s simply poorly thought out and very strange legislation. Personally, based on what I know and have read from those in the know this is as poorly thought out and full of unintended consequences as Obama’s ACA.
 

Pompous Elitist said:
Well, I’ll give you the benefit of the doubt and it’s clear some things have been simplified while opening up a vast number of other things for abuse. Look, every legislative decision has winners and losers. I’m not being political, it’s simply poorly thought out and very strange legislation. Personally, based on what I know and have read from those in the know this is as poorly thought out and full of unintended consequences as Obama’s ACA.
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You're not wrong.

But I think this is going to be the new normal: ram something through, change something, declare victory. It won't be perfect by any means, but it will change something. Then you try to sell people on that the change is great.

The long, drawn out process is too likely to become corrupted by people who want to sabotage the policy on principle or try to carve out a slice of pork for themselves. The fly by night approach somewhat avoids that.
 

I’ve always found making knee jerk decisions that entail lifelong consequences is the way to go. /s

Look at the arguing in the GOP over the BAT as a way to pay for the corporate tax cut. Winners and losers. Fell by the wayside and now we have an alternate path of winners and losers and long term consequences.

For the record, I will have direct, immediate benefit from this bill but it creates opportunities for cheaters and protected classes vs non-protected and carries longer term costs we cannot predict.

I suggest google “Kansas, Sam Brownback, taxes” and see what a poorly thought out agenda engenders. I’m not saying this is that, but the principle remains.
 

MnplsGopher said:
You're not wrong.

But I think this is going to be the new normal: ram something through, change something, declare victory. It won't be perfect by any means, but it will change something. Then you try to sell people on that the change is great.

The long, drawn out process is too likely to become corrupted by people who want to sabotage the policy on principle or try to carve out a slice of pork for themselves. The fly by night approach somewhat avoids that.
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Wrong. Congress is designed to take their time, analyze the alternatives and work out comprises. Passing legislation for the sake of just doing something, not even reading the bill, using budgetary tricks to circumvent voting rules so you don’t have to even talk to the other side of the aisle that represents half of the country, etc.... it is a prime example of what is broken about the process. Just wait until next year when they use “the massive debt” as an excuse to take away Social Security and Medicare that everyone has been paying (into separately designated funds) their whole live.


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MnplsGopher said:
But I think this is going to be the new normal: ram something through, change something, declare victory. It won't be perfect by any means, but it will change something. Then you try to sell people on that the change is great.

The long, drawn out process is too likely to become corrupted by people who want to sabotage the policy on principle or try to carve out a slice of pork for themselves. The fly by night approach somewhat avoids that.
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Have you ever been a Senator? If not, you can't possibly have a clue and are clearly not qualified to give your opinion or comment on others opinions. This is so obvious.


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Back to the original point of the thread:

The new tax law likely will have an impact on college sports in general and the Gophers in particular. Right now, the BTN money is flowing in. But, if that revenue stream ever slows down, due to cord-cutting or whatever, then the U may be faced with cutbacks - likely hitting the non-revenue sports 1st.

And, as discussed in another thread, the loss of the tax deduction for the seat donations could impact season-ticket sales, which in turn will impact revenues.

So, this tax bill does have consequences. I might get another $500 or so at the end of the year. But there is a bigger picture than just what impacts me personally.
 


There goes the Womens rowing team...[emoji571]
 


Spoofin said:
Have you ever been a Senator? If not, you can't possibly have a clue and are clearly not qualified to give your opinion or comment on others opinions. This is so obvious.


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All of use better quit talking about college football here then since I'm sure very few people on here played.
 


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