Former President Trump is proposing to eliminate special tax breaks for billionaire sports team owners, targeting lucrative write-offs that have long benefited these wealthy individuals. While the plan's details are still unclear, it could significantly impact the financial landscape of professional sports.
White House Press Secretary Karoline Leavitt announced on Thursday that Trump intends to eliminate all special tax breaks for billionaire sports team owners . While the exact details remain unclear, the proposal could make it harder for owners to take advantage of lucrative tax write-offs that have long cushioned their investments. For the mega-rich, owning a sports team has long been the ultimate trophy, a sign that they’ve made it to the major leagues of wealth.
'You don’t buy a sports team and hope to become wealthy; you’re a wealthy person and you buy a sports team,' Eric Nemeth, a tax partner at Varnum law firm, explained. One of the most significant tax advantages for team owners is the ability to depreciate their investments over 15 years. While depreciation deductions are common in many industries — such as manufacturing, where companies write down the value of factory equipment — sports franchises have an unusual edge. Owners can write down intangible assets like TV contracts and player rosters, even though these assets often appreciate in value.Since Congress would struggle to apply the changes retroactively, the current roster of billionaire sports moguls is unlikely to take a major hit. Mets owner Steve Cohen, the hedge fund titan who founded Point72 Asset Management, is among the wealthiest owners. Together, they boast a combined net worth of $869 billion, with some of the biggest names in business sitting courtside as majority stakeholders. However, new buyers may have to rethink their game plan if their ability to write down investments is curbed. The former president, who met with Republican leaders for over five hours on Thursday, is pushing to eliminate taxes on tips, overtime and Social Security benefits. He has also proposed lifting the $10,000 cap on state and local tax deductions, targeting hedge fund managers by closing the carried-interest loophole and incentivizing American-made products with tax cuts. While House Republicans are still huddling over the details, Trump is hoping to get his tax cuts through the Budget Committee as early as next week.A significant part of Trump’s plan involves funding tax cuts through increased tariffs on imports, a strategy that has drawn mixed reactions. Additionally, his administration is working to slash discretionary spending under the Department of Government Efficiency, spearheaded by Tesla CEO Elon Musk.
Politics Trump Tax Breaks Sports Team Owners Billionaires Tax Reform Republican Party Budget Committee
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Trump's DOGE Department Aims to Eliminate Penny to Cut Government CostsFormer President Donald Trump, back in office, has signed an executive order to create DOGE, the Department of Government Efficiency, led by Elon Musk. DOGE's mission is to reduce government spending, with numerous programs and positions on the potential chopping block. The department is also reportedly considering eliminating the penny, citing its production cost exceeding its face value. The US Mint previously acknowledged the penny's production cost surpassed its worth for 19 consecutive years.
Read more »
Trump Vows to Make Tax Cuts Permanent and Eliminate Tip TaxesPresident Trump addresses a Turning Point Action conference, outlining his administration's agenda, including making the Trump tax cuts permanent and eliminating taxes on tips.
Read more »
Carney on Kudlow: Trump’s Tariffs Could ‘Almost Eliminate the Corporate Tax’Source of breaking news and analysis, insightful commentary and original reporting, curated and written specifically for the new generation of independent and conservative thinkers.
Read more »
Trump Urges GOP to Eliminate Tax Breaks for Sports Owners, Hedge Fund ManagersPresident Trump has requested Republican congressional leaders to end tax perks for sports team owners and hedge fund managers to fund his campaign promises of middle-class tax cuts. Trump met with GOP leaders for over five hours, focusing on budget and reconciliation strategies. House and Senate Republicans are debating the best approach to implement Trump's tax agenda, with some favoring a two-bill strategy and others pushing for a single, massive budget reconciliation package. The meeting comes after the House Budget Committee delayed plans to mark up a resolution needed to unlock the Senate reconciliation process.
Read more »
Americans' Tax Bills Could Change in 2024 as Trump-Era Tax Cuts ExpireMany provisions from President Donald Trump's 2017 Tax Cuts and Jobs Act (TCJA) are set to expire this year, potentially leading to higher tax bills for many Americans. While the GOP controlling both houses of Congress and the White House suggests an extension of the law, there are concerns about the impact on various income brackets and deductions. The article explores the potential tax implications, citing projections from the Tax Foundation and highlighting Republican plans for tax policy.
Read more »
Trump Promises Permanent Tax Cuts and No Tax on TipsPresident Donald Trump announced his intention to work with Congress to pass legislation making his 2017 tax cuts permanent and eliminating taxes on tips for workers in industries reliant on such income. He emphasized this commitment during a speech at Turning Point Action’s “People’s Conference”, stating that supporting American workers and families is a top priority for his administration.
Read more »