What are the justifications for tax-exempt “professional football leagues?”
Lately, debatesregarding the NFL’s tax-exempt status are not uncommon. While the NFL hassuccessfully defended its tax-exempt status as a § 501(c)(6) organization, manypeople still believe that the advantages of eliminating the NFL’s exemptionsufficiently outweigh the disadvantages. In fact, some people argue that thereare no real disadvantages of eliminating the NFL’s tax-exemption and that theNFL should follow the MLB’s lead and voluntarily give up its tax-exempt status.
Acknowledgingthat one goal of tax policy is economic efficiency, it is particularlyinteresting that § 501(c)(6) explicity lists “professional football leagues.” What it is about exempting “professionalfootball leagues” that furthers the goal of economic efficiency? What argumentssupport the claim that there are no disadvantages of eliminating the NFL’stax-exemption?
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