Proposals for NIL income to be exempt from state income tax?

[Lion_Backer]

Apparently there are proposals in several state legislatures which would exempt income earned through NIL with the intention of not being 'outcompeted'.

This one is from the Louisiana state legislature.



Without a governing body capable of gaining control of this situation, it will continue to devolve .....

 

[Big 0]

It is in FL, WY and a couple of other states.

 

[Aardvark86]

Grotesque and pathetic. Income is income, and there is literally no social policy rationale to support this other than some schmuck donor being able to get his rocks off through vicarious living.

 

[Wallace Breen]

Not only must NIL remain taxed at the state level, those that accept NIL (and soon revenue sharing) must pay full taxes on their grant in aid as that 100K plus should be viewed as taxable income at state and federal levels.

 

[Obliviax]

Ok. I am going to employer to change my payroll income to payment for my NIL. Why not?

 

[voltz99]

Apparently there are proposals in several state legislatures which would exempt income earned through NIL with the intention of not being 'outcompeted'.

This one is from the Louisiana state legislature.

View embedded media

Without a governing body capable of gaining control of this situation, it will continue to devolve .....

Bleep that. Tax them double.

There is a governing body. The irs

 

[Lion_Backer]

Bleep that. Tax them double.

There is a governing body. The irs

The state legislature makes the actual laws. The IRS is empowered with enforcing those laws.

 

[PurposePitch]

Bleep that. Tax them double.

There is a governing body. The irs

The state legislature makes the actual laws. The IRS is empowered with enforcing those laws.

The IRS is federal, guys.

 

[Lion_Backer]

The IRS is federal, guys.

You are correct. The state tax agencies perform the IRS type services and would be the enforcement arm of any new state tax exemption laws for NIL.

That was the point that I was trying to make.

 

[GregInPitt]

Name the PA bill "Make PSU Football Great Again" !!!

 

[PurposePitch]

Name the PA bill "Make PSU Football Great Again" !!!

And then light the bill on fire before anyone can sign it.

 

[step.eng69]

MY FEELING.....
I DON'T GIVE A RAT'S A$$ ANY MORE
I'll continue to keep my seats at the Beaver for the grandkids

 

[PSUWrestlingFanSince2011]

Yes let’s tax the college kid paying their own way in college while working jobs on the side while in school but no tax on college kids making $100k+ with free tuition. Make it make sense.

 

[Lion_Backer]

It is in FL, WY and a couple of other states.

I don't know re WY, but Florida does not have a state income tax for anyone who is employed in the state. So NIL would be exempt by default.

I'm guessing that these proposals are in response to already existing laws in states like FL.

 

[jjw165]

The rich need to pay their fair share.

 

[heckmans]

Apparently there are proposals in several state legislatures which would exempt income earned through NIL with the intention of not being 'outcompeted'.

This one is from the Louisiana state legislature.

View embedded media

Without a governing body capable of gaining control of this situation, it will continue to devolve .....

Hey pols, so you think getting rid of state income tax will help institutions get better football talent, huh?
Tell me more about how you think it affects the average company and talent level for every field in the state.

 

[Lion_Backer]

Hey pols, so you think getting rid of state income tax will help institutions get better football talent, huh?
Tell me more about how you think it affects the average company and talent level for every field in the state.

If I am understanding the tax change proposals correctly, the states who do have an income tax would only be exempting earnings from NIL for athletes.

All of the other people employed in there would still be subjected to the state income tax.

 

[Obliviax]

If I am understanding the tax change proposals correctly, the states who do have an income tax would only be exempting earnings from NIL for athletes.

All of the other people employed in there would still be subjected to the state income tax.

I get it...and it makes sense in that they can compete with TX, FL and Tenn specifically. But my problem is, how is this a category of "athlete?" How could they differentiate NIL income for Sidney Sweeney and Drew Allar? Can SS go play volleyball and then claim she got the NIL money for her sports activities versus from being a movie star? And why does an athlete get preferential treatment versus a plumber to has a very physical job to make less money?

I get the reasons but am fundamentally against it. If you state income tax is a problem, abolish it.

 

[bdgan]

Apparently there are proposals in several state legislatures which would exempt income earned through NIL with the intention of not being 'outcompeted'.

This one is from the Louisiana state legislature.

View embedded media

Without a governing body capable of gaining control of this situation, it will continue to devolve .....

What an embarrassment NIL has become!

 

[Lion_Backer]

What an embarrassment NIL has become!

I'm unfortunately in agreement with you.

I want to make myself clear in that I do not object to these players being compensated 'properly' for the revenue and prestige that they can help generate for their university.

And while I am no expert on the ins and outs of NIL, from an outsider's perspective, the 1st rule for NIL appears to be: There are no rules. The lack of transparency in this system of compensation leaves the average fan wondering what is fact and what is fiction

It has become somewhat of a farce to promote what used to be the ideals of college athletics. Sportsmanship, leadership, work ethic, sacrifice and understanding what your current role is in making everyone on your team better are being methodically deemphasized.

And while I do see evidence of these values still in existence with our football, wrestling, hockey and volleyball teams, it is far from being pervasive across collegiate sports as it once was.

 

[87 Penn St8]

MY FEELING.....
I DON'T GIVE A RAT'S A$$ ANY MORE
I'll continue to keep my seats at the Beaver for the grandkids

More and more with you Step.

In one version of our retirement we build a barn- garage-dominium big enough to house an RV. There would be an efficiency apartment upstairs suitable for couples. Our plot is plenty big w 2.5 acres and the guests could have a fully private back deck/patio facing trees for chilling, grilling and staying out of our hair.

Living close to Longwwod Gardens and Brandywine Valley attractions could set us up to pay for both the construction and the RV with Air bnb income. And pay for trips that we may not otherwise do.

My wife wants to tour around America- going to things like festivals and Frank Lloyd Wright houses. She has agreed to include college towns and football games in the Fall- as long as she doesn't have to go into the games

If things stay as they are I may stick to the plan but bag the football. Obviously we have put a lot of thought into this- and the NIL world has altered it in a way that is no longer that appealing.

Maybe I'm just becoming an angry old man as I approach 60? Or maybe the product has become so diluted that it doesn't resemble the original?

Think New Coke.....

 

[heckmans]

If I am understanding the tax change proposals correctly, the states who do have an income tax would only be exempting earnings from NIL for athletes.

All of the other people employed in there would still be subjected to the state income tax.

I understand the proposal. I was making a point that if there are competitive advantages to not taxing labor and income, there are competitive advantages to not taking labor and income. Full Stop. The type of labor and income is irrelevant.

When you tax something you get less of it. There should be no income tax, at all - state nor federal.

 

[Obliviax]

I understand the proposal. I was making a point that if there are competitive advantages to not taxing labor and income, there are competitive advantages to not taking labor and income. Full Stop. The type of labor and income is irrelevant.

When you tax something you get less of it. There should be no income tax, at all - state nor federal.

Agree with your first paragraph. And what makes this difficult is that there is no collective or collective bargaining agreement. With pro ball, there has been a cogent argument made to the players to make sure the guidelines are in place to preserve small market, high taxed and Canadian teams to broaden the appeal of the game with benefits the entire pool of players (not just the elite that have more NIL money coming their way). this kind of thing has the potential to drive out universities that are on the bubble of sustaining a D-1 program.

 

[psu1969a]

Not only must NIL remain taxed at the state level, those that accept NIL (and soon revenue sharing) must pay full taxes on their grant in aid as that 100K plus should be viewed as taxable income at state and federal levels.

Don't forget local income tax and social security (your 7% and you pay employer 7%). Also other taxes depending on locale.

 

[christoph]

No federal either! Let’s keep going. Make them above all others.

 

[PSUWrestlingFanSince2011]

No federal either! Let’s keep going. Make them above all others.

Social security? Hell to the no! Program wont be around when these kids are senior citizens anyway.