[Card Fan in OR]

Don't forget the elimination of the state tax deductions. Coaches in California, NJ, and New York will be hit the hardest. Stanford, ןɐɔ, UCLA, U$C, and perhaps Syracuse and Rutgers get hit pretty hard. The cost of living here is already bad enough, going to be more difficult to attract both head coaches, assistant coaches, and staffs.

I am certainly with cardcrimson that the elimination of the state and local income tax deduction is germane for recruiting paid employees. There have also been a number of good points regarding taxation of grad students, seat license deductibility, and others.

However--although not limited to sports--there is one significant effect of the elimination of the SALT deduction (save a capped amount of property taxes) that has not received much attention. Currently slightly more than 30% of taxpayers itemize on their returns, and that number averages around 40% in high tax states, like NY, NJ, MA, CA, OR, etc. The rough doubling of the standard deduction to $24,000 (m) will (probably sharply) reduce the number of people who itemize--and even more so with possible caps for mortgage interest deductibility, the elimination of deductibility of home equity loans, and other changes.

What does this mean? For many mid- to upper middle income taxpayers, itemizing will no longer be favorable. As a result, charitable contributions will cost 100 cents on the dollar, as opposed to 50 or 60 cents for those taxpayers today. We know that the elasticity of charitable contributions with respect to their aftertax cost is fairly high. I expect the impact on charitable giving will be quite noticeable if not bordering on dramatic.

We can debate what should or should not be tax-favored activity, but changes such as these will have significant individual and sectoral effects.

[Card Fan in OR]

Don't forget the elimination of the state tax deductions. Coaches in California, NJ, and New York will be hit the hardest. Stanford, ןɐɔ, UCLA, U$C, and perhaps Syracuse and Rutgers get hit pretty hard. The cost of living here is already bad enough, going to be more difficult to attract both head coaches, assistant coaches, and staffs.

I am certainly with cardcrimson that the elimination of the state and local income tax deduction is germane for recruiting paid employees. There have also been a number of good points regarding taxation of grad students, seat license deductibility, and others.

However--although not limited to sports--there is one significant effect of the elimination of the SALT deduction (save a capped amount of property taxes) that has not received much attention. Currently slightly more than 30% of taxpayers itemize on their returns, and that number averages around 40% in high tax states, like NY, NJ, MA, CA, OR, etc. The rough doubling of the standard deduction to $24,000 (m) will (probably sharply) reduce the number of people who itemize--and even more so with possible caps for mortgage interest deductibility, the elimination of deductibility of home equity loans, and other changes.

What does this mean? For many mid- to upper middle income taxpayers, itemizing will no longer be favorable. As a result, charitable contributions will cost 100 cents on the dollar, as opposed to 50 or 60 cents for those taxpayers today. We know that the elasticity of charitable contributions with respect to their aftertax cost is fairly high. I expect the impact on charitable giving will be quite noticeable if not bordering on dramatic.

We can debate what should or should not be tax-favored activity, but changes such as these will have significant individual and sectoral effects.