THE "JOCK TAX": PLAYERS ALWAYS LOSE IN AN UNFAIR GAME
Open Access
- Author:
- Taylor, Justin Walter
- Area of Honors:
- Accounting
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Rick C Laux, Thesis Supervisor
Orie Edwin Barron, Thesis Honors Advisor - Keywords:
- Jock Tax
NFL
Professional Athletes
Professional Sports
Individual Income Taxation
Justin
Taylor - Abstract:
- Modern professional athletes are some of the most recognizable and well-paid members of society in the United States. While their biggest fans are the devoted followers that fund the growing professional sports industry, tax administrators from states and cities across the country are also watching their every move. Since the early 1990s, collectors at the state and local level have enforced the “jock tax,” an individual income tax specifically targeting non-resident professional athletes. Experts consider the policy to be both inefficient and discriminatory in nature, as it targets athletes based solely on their profession and increases the compliance burden for all affected parties. Still, taxing authorities have found that the additional revenue raised outweighs the cost of enforcement, and there are no signs that any change in policy is imminent. This thesis studies the hypothetical effects of the “jock tax” on NFL personnel during the 2012 season. It seeks to determine how much excess income tax team employees will incur and whether these amounts provide further evidence that the tax is poor policy. In addition, the paper will analyze which teams are the most and least beneficial to play for from a tax perspective. Lastly, this thesis will test the assertion that fans, media, and perhaps even team members themselves have an incorrect understanding of how taxes should affect the employment decisions of professional sports team personnel.