Common Issues with Revenue Generated from Broadcasting Right
February 12, 2025
Technology has touched every aspect of our lives in the recent years and banking has been no exception. Huge strides made by information technology have allowed banks to provide much better levels of service to their customers at drastically lower costs. The deployment of technology has also changed the channels via which customers interact with […]
Financial markets move on the basis of data. If one party consistently receives information faster than the others, then the said party is statistically likely to consistently make more money as compared to other parties because of this data advantage. There are several pieces of data that are important while trading in the stock market. […]
The entity concept separates the concerns of the owners from the business. An extension of the same concept is the concept of accounts which splits up the business’s affairs further. The account concept becomes clearer once the double entry system of accounting is explained. That is done at a later stage in the tutorial. Transactions […]
Formula Working Capital to Sales Ratio = Working Capital / Sales Meaning Stating the working capital as an absolute figure makes little sense. Consider two companies, both having the same working capital of USD 100. While one company uses this working capital to generate sales of USD 500, the other uses the same amount as […]
The retail sector is often considered to be a part of a single industry that has similar characteristics. However, this is not necessarily the case. It needs to be understood that the retail sector is very diverse. There are many different types of businesses which operate in this sector. These businesses have considerably different characteristics. […]
In the previous article, we have already understood what Jock Taxes are. We also had a closer look at the reason why states levy jock taxes. However, there are many experts who believe that levying jock taxes is counterproductive. This is because of the fact that there are more disadvantages associated with jock taxes as compared to the advantages.
In this article, we will have a closer look at some of the pros and cons related to jock taxes.
The details of the pros and cons have been listed below:
The advantages of levying a jock tax are as follows:
Since the jock tax is levied on the income which is generated within the state, the income tax authorities of the state are within their bounds when they impose such a tax. If the governments use the money generated from sports in order to further develop sporting infrastructure within the state, such a tax may be justified to some extent.
Jock taxes, on the other hand, make it possible to redistribute this tax income amongst states. Hence, a few states are not able to corner the earnings. Also, the taxes charged by one state result in tax credits being given to the athlete. As a result, double taxes are not paid by the athlete. The end result is that the athlete pays roughly the same amount in the form of taxes but the amount is distributed amongst a larger number of states.
The disadvantages related to jock taxes are significantly more as compared to the advantages. The details of the disadvantages are as follows:
The athlete will obviously not be aware of all these details. Hence, they are required to engage professional accountants to file these taxes. The fees that need to be paid to professional accountants can be quite significant. Also, it doesn’t necessarily have to be paid by athletes who make millions. Even coaches, trainers, and other staff who do not earn millions of dollars have to deal with these complications.
There have been some states that have been sued by athletes since the athletes claimed that the amount of taxes owed by them was more than the total amount of money that they earned from that state!
Since there are multiple teams and hundreds of players involved, the end result is that planning the match schedule as well as the travel schedule becomes an increasingly complex exercise.
Hence, in effect, jock taxes are only pushing the wages higher which is ultimately leading to an increase in the price of tickets.
There are some states like Florida which have aggressively cut down jock rates in order to attract more sporting leagues. However, the end result is unhealthy competition which benefits wealthy billionaires instead of benefitting the people at large.
Thus, it can be said that jock taxes have more disadvantages than they have benefits. However, they are still widely prevalent across the United States and even the entire world.
Your email address will not be published. Required fields are marked *