From the Starting Block to H & R Block

“If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” – Ronald Reagan

From the Starting Block to H & R Block

Commentary by Sanford D. Horn
August 14, 2012

Certainly the United States’ Olympic athletes move – and some do so faster than anyone else in the world has ever moved at any time in history – whether on the track, in the pool, on the ice; or if not faster, than more gracefully or with more strength or more agility.

But should these athletes be taxed for the privilege of representing the Stars and Stripes in places like London, Beijing, Vancouver, and Sochi?

To be clear, the Olympians are being taxed if they come home with the hardware – gold, silver or bronze – and are rewarded by the United States Olympic Committee to the tune of $25,000, $15,000, and $10,000 respectively. The USOC is not an arm of the United States government, but an independent organization which raises money from corporate donors and private citizens who wish to support the training and travel of the athletes.

But while the likes of Michael Phelps, Gabby Douglas, and Sanya Richards-Ross have or will strike it rich via endorsements, the overwhelming majority of Olympians toil in obscurity shelling out thousands upon thousands of dollars for coaching, training, travel and private education – in some cases reaching six-figures. Men’s and women’s basketball as well as men’s ice hockey notwithstanding, as they have professional leagues, are not crying poverty, but poverty is a real issue for some of the athletes – see the stories of Douglas and Lo Lo Jones as well known examples.

The overwhelming majority of the athletes return home empty-handed save for the fond memories and photographs they will enjoy for a lifetime. The United States sent 539 athletes to London to compete in sports as well-known as gymnastics, basketball, and soccer, and lesser recognized events as handball and modern pentathlon. American athletes brought home 147 individual gold medals, 59 silvers, and 49 bronze – taking into account team sports count as one medal, but all participants receive one. (www.forbes.com)

Granted, no one is forced to train for the Olympics, but when one is discovered at such a young age with a particular talent, skill, or otherworldly ability, it should be encouraged, nurtured, capitalized upon, and pushed to the limits of human capacity.

It then begs the question, should amateur athletes be subjected to a visit from the IRS upon receipt of the gold, silver or bronze medals? There are those who would say yes, it is income earned for a successful job, such as a commission-earning employee – paid upon making a sale. Like any other employee subject to income tax, they should be taxed. But, by whom are these Olympians employed? Are they contract employees? Sole proprietors of their own business? At what rate should they be taxed? Of course, only the medal winners are subject to the tax, based upon on 35 percent rate.

But there is relief. “Anything used for the production of income is deductible,” said Brad Bell, partner with BGBC Partners, LLP of Indianapolis, specializing in accounting for athletes. (www.politifact.com)

And then there is the absurdity of taxing the actual medals brought home by the Olympians. According to CBS News, the value of a gold medal is $644; silver is valued at $330 and bronze at $4.70. The medal values are based upon July 11 metal prices used by Lear Capital, a precious metals firm. (www.bizjournals.com) These physical medals should not be taxed.

As it is, the United States is the only country to tax worldwide income earned overseas.

In an effort to eliminate the tax on Olympians’ medal earnings, Senator Marco Rubio (R-FL) introduced, on August 1^st, the “Olympic Tax Exemption Act.” In doing so, Rubio said “We can all agree that these Olympians who dedicate their lives to athletic excellence should not be punished when they achieve it…. Our tax code is a complicated and burdensome mess that too often punishes success.” (www.washtimes.com)

Senator Rubio is absolutely right about not taxing the labors and sweat equity of the Olympians Herculean efforts. That said, why should anyone’s labors be taxed? Why should anyone’s earnings be taxed? Why should anyone’s success be punished?

Are the man hours of a local drycleaners who opened his own business less important than the soccer skills of Hoosier Lauren Cheney? Why should the drycleaner be taxed on his successes? Why should military veterans benefits taxed? They have made the greatest of sacrifices and are often on the short end of the economic stick.

There is a bigger picture at hand here. Instead of taxing income, earnings, and success, tax spending. This would certainly be a progressive tax where the rich, who already pay more than their fair share, would continue to do so. A sales tax would collect more from the buyer of a Cadillac than it would extract from the buyer of, say, a Ford Escort. The big spender buying a yacht would put more into the tax coffers than would a lower earner spending his or her disposable income on a new television.

The Olympics medals experience should be the launching pad for a new and improved system of taxation. Stop punishing success – and this includes dividends and capital gains. Encourage growth by having people keep more of their own money. They can best decide how to appropriate their earnings – reinvest in their businesses, invest in other people’s business – small or corporations – who will create jobs and boost the economy, save for the future so they are not a drain on government, or even contribute to much needed charities.

All Americans need to be able to go for the gold without being punished by a repressive government.

Sanford D. Horn is a writer and educator living in Westfield, IN.

Not-tany Lions Declawed

Not-tany Lions Declawed
Commentary by Sanford D. Horn
July 23, 2012

On the day following the dismantling of the statue of Joe Paterno on the campus of Penn State University the rest of the football program has rightfully suffered a more deeply impacting disabling.

Both the stripping of the campus of the statue of the iconic coach, six months to the day of his death, January 22, and the punishment thrust upon the university were appropriate and overdue. The objections by students on campus at the removal of the statue of Paterno, who coached at Penn State from 1966-2011, is demonstrative of how the culture of sports and hero-worship has far superseded what is right, proper and moral and perhaps indicative of how the NCAA did not go far enough in its punitive actions against the school.

The university, and the football team specifically, have been sanctioned by the NCAA for its complicity in the child abuse sex scandal that rocked the Happy Valley campus to its core last fall. This scandal saw former assistant coach Jerry Sandusky convicted of abusing 10 boys. The true number of young boys molested, violated and/or abused may never be known, and while the lost innocence of those boys can never be replaced, the sanctions against Penn State are a good start. Hopefully, the severity of the punitive actions, while not deep enough, will deliver a message across the nation’s campuses that humanity and morality will trump sports and the protection of so-called heroes at the risk and potential loss of children’s innocence.

Sandusky deserves nothing less than to pay for his vicious crimes with the ultimate penalty – his life. Yes, the death penalty is most appropriate for the perverse and unconscionable crimes of robbing young, impressionable children of their trust, protection and innocence – irrevocably altering their lives. Yet, the sanctions imposed upon Penn State have nothing to do with the ongoing criminal investigations, said Mark Emmert, NCAA president.

Sandusky may be the lowest of the low, but the cover up is just as much a part of this whole sordid tale – just ask the ghost of Richard M. Nixon. As such, the assistant coaches and Paterno are just as complicit, and the university obviously agreed, firing the coach proven to have feet of clay on November 9, 2011, along with relieving Graham Spanier of his duties as university president.

The current regime must now cope with the loss of $60 million – the financial penalty equivalent to one year of football’s gross receipts. The $60 million is to be paid out at $12 million increments over the next five years into an endowment to benefit victims of child sex abuse. This money cannot come at the expense of non-revenue sports or the student-athlete scholarships, yet, while academic sources were not ruled out, Emmert said such a plan would be inappropriate.

Ultimately, I fear a large chunk of this fine will come from the coffers of the taxpayers of the Commonwealth of Pennsylvania, which would be wholly unacceptable.

While not sanctioned with the so-called Death Penalty, the punishment imposed upon Southern Methodist University (SMU) in 1987 for paying players thousands of dollars, the penalties facing Penn State will certainly hamstring the football program for many years to come – presumably long after the penalty phase expires.

“We did not feel the suspension of play would be appropriate,” said Dr. Edward Bay, NCAA Executive Committee Chair and President of Oregon State University.

Such a punishment would send an eye-opening message that this scandal is bigger than the tarnished reputation of Joe Paterno, bigger than football, bigger than sports and certainly bigger than the demands of the fans, boosters and alumni. The need for a cultural change is vital, in spite of the unintended harm that would come from the secession of play for one season.

Clearly arguments can be made on both sides of the death penalty coin. The revenue lost to the university for the six home games, the exposure given to the band and cheerleaders, as well as the income lost to the vendors is at stake. The university would need to pay the schools of the six road games for lost revenue.

But the bigger picture is that the institution of football is not too big to fail; that the culture of sports is not too big to fail. These are tragic circumstances which require harsh and immediate meaningful actions.

For the next four years, 2013-17, Penn State is banned from participating in bowl or other post-season games, including the Big Ten conference championship. As for the conference title game, the university will forfeit about $13 million over the same four year period, also to be donated.

Additionally, the Penn State football program has been sacked in the scholarship department on two levels. The NCAA has limited new annual scholarships from 25 a year down to 15 for each of the next four years in addition to limiting the number of total scholarship players each of the same four years to 65, down from 85.

Clearly this will impact recruitment on top of the post-season ban. Major high school recruits will want to play where they have an opportunity to appear in a bowl or other post-season games. They will likely seek to avail their skills to other programs. On the other hand, Penn State head coach Bill O’ Brien must sell his program to players who might not have the opportunity to earn serious playing time at another major institution.

As for the current squad of Penn State football players, they will be allowed to transfer without the traditional penalty of yielding one year of their eligibility. Should players decide to remain at Penn State and not continue to play football, the university is required to honor the scholarships of those players. And those scholarships would count toward the 65 permitted for that season.

Penn State will also be placed on five years probation during which time it is expected to work with an academic integrity monitor, an independent, third-party to report on Penn State’s progress, at a cost to be absorbed by the university. This is designed to elucidate the university to embrace values appropriate for an institution of higher education complete with the virtues of fair play on the field, positive moral values off the field and a place where children can be nurtured, protected and educated.

This is a “horrifically egregious situation,” said Emmert. “No one feels good about this. This is an unprecedented, painful chapter in the history of intercollegiate athletics.”

“We hope we are never here again,” said Bay.

Former NCAA and NFL coach Lou Holtz predicted “serious fan drop offs” from the more than 100,000 fans per home game to around 50,000.

One additional penalty, with which I found objectionable, but understand the reasoning behind it, is that all wins earned by Penn State and Paterno from 1998 through 2011 will be vacated. The year 1998 was selected as it represents the first reporting of abuse and the failure of Paterno and the university to act appropriately. For the record, 112 wins will be forfeited, all but one under Paterno’s name, dropping him from the winningest Division I coach  down to fifth place with 298 wins behind Bobby Bowden (377), Bear Bryant (323), Pop Warner (319), and Amos Alonzo Stagg (314).

While I understand removing Paterno from the top of that elite list, it also punishes the hundreds of players who presumably had nothing to do with the sex abuse scandal. It offers the implication of on-field cheating by otherwise honest football players. The wins earned by those players on the field should stand.

Make no mistake; I am not defending Paterno, by any stretch of the imagination. In fact, my animus toward Penn State far pre-dates this sex abuse scandal. As any University of Maryland alumnus can site, there is a bad history on the gridiron between the two schools – with Penn State leading Maryland in the all-time series 35 wins, one loss and one tie. Maryland’s lone victory occurred in 1961 and the Terrapins have not won since.

And while I am a tremendous sports fan, I have placed this monstrous scandal in its proper place and perspective. The Pennsylvania State University must suffer the consequences of the actions of its employees. The sanctions will undoubtedly prove deleterious to the football program, but hopefully the message will be received around the nation’s campuses that immoral, lascivious behavior, including, but not limited to, the molestation of children will never again be tolerated or covered up.

Paterno was not G-d and football is not a religion. Amen.

Sanford D. Horn is a writer and educator living in Westfield, IN. He is an alumnus of the University of Maryland and a member of its Terrapin Club, supporting the scholarship program for athletes.

If Soros Buys, I Say Good-Bye

If Soros Buys, I Say Good-Bye

Commentary by Sanford D. Horn

June 29, 2005

I, like my fellow-Republican acquaintances Tom Davis of Virginia and John Sweeney of New York, cringe at the thought of left-wing extremist George Soros coming within a country mile of the ownership of the Washington Nationals.

However, I am not as disingenuous as Davis as to suggest that “I don’t think I’ll be getting good season tickets if he gets the team,” Davis was quoted as saying in Sally Jenkins’ Wednesday, June 29 commentary “Taking Aim At Soros Is Hardly Politic.” This is because I would put my money where my mouth is – and not give Soros one dime of my money for him to spend on his extremist causes. Davis, however, would still support Soros, and thus by extension, Soros’ left-wing projects.

While I don’t approve of a Soros-owned Nationals – or anything else for that matter – I don’t begrudge him the right to own the team or anything else, for that matter, thus agreeing with Jenkins. I disagree with Jenkins when she said “I don’t much care about Soros, and I don’t care at all which rich guy gets the privilege of spending $400 million… on the Nats.”

Well I do care about Soros and about who may own the Nationals. Soros is too liberal and he does advocate for legalized/decriminalized marijuana, a needle exchange program for drug users/addicts, open borders and a whole host of other beliefs I do not subscribe to.

As a lifelong New York Mets fan, much to Yankee fan Sweeney’s chagrin, I eagerly awaited baseball’s return to our nation’s capital – especially since the Nationals are a rival National League East team who will battle the Mets throughout the season. I have already been out to RFK to see the Nationals take on the Mets as well as other teams and have tickets to continue doing likewise during the summer.

But my financial support of the Nationals will cease under the ownership of Soros and would recommend to others who share my principals to do likewise. Such a threat, which would become a promise should Major League Baseball decide to “award” the team to Soros, could cost the team more in the long run. Soros has the right to own the team, as much as I and other current patrons have a right to withhold financial support.

As for Jenkins’ accusation of Davis’ xenophobia, it is somewhat over the top. Davis is no more xenophobic for not wanting Soros as owner of the Nationals than he is anti-Semitic for supporting a Fred Malek ownership. I, for one would just as soon boycott a Malek-owned team as I would a Soros-owned team. I am an active Jewish Republican and have had a number of one-on-one conversations with Davis and don’t believe him to be xenophobic or anti-Semitic.

Major League Baseball will make the decision regarding ownership of the Nationals. Hopefully it will be a decision its fans can live with. See you at the ballpark – maybe.

Sanford D. Horn is a writer and political consultant living in Alexandria, VA.

Congressional Baseball - an American Pastime

Congressional Baseball – an American Pastime

Commentary by Sanford D. Horn

June 21, 2001

Having more fun than a human being should be allowed, two of my passions – baseball and politics were combined as I attended the 40^th annual Congressional Baseball Game, played tonight, Thursday, June 21, at Prince Georges’s Stadium in Bowie, Md. – the home of the Orioles Double-A Bowie Bay Sox.

In a game that mattered as much to the over 60 participating Congressman as a campaign fundraiser, spirits were high while the elected officials could not have been more congenial and affable.

But this was serious business as the game featured four umpires, hustle – as witnessed by a professional-looking headfirst slide into third base, players/legislators running out batted balls, steals and attempts to turn the double play.

So serious that Rep. Tom Davis (R-VA), wearing a Potomac Cannons uniform, who I cover in my duties as a journalist, said “make sure that looks like a line drive in print,” with a grin on his face after dunking a bleeder into the outfield and was subsequently replaced by designated pinch-runner Rep. Adam Putnam (R-FL).

Putnam, by the way, at 27, is the youngest member in the House – barely looks old enough to order a beer legally. Joking with another reporter from North Carolina, we knew Putnam had to be at least 25 to wear the uniform, but hey, let’s see some ID fella!

The game was slated for a 7:05 first pitch, but the combination of a House vote and traffic – big surprise, delayed the arrival of most of the members. Oddly enough there were about 10 members on the field when I arrived at about 6:10 p.m. Hmm – who wasn’t on the House floor to vote? Just a thought.

The players were decked out in uniforms from Major League teams, minor league teams, college teams and even a high school team, as evidenced by Putnam (probably his original uniform). Sadly, as a Republican and a lifelong Mets fan, it pained me to see two Republicans in Yankee pinstripes – something my mother would have liked and the lone Met uniform was worn by a Democrat – Rep. Anthony Weiner (NY), who was brutalized by fans. (Should have changed his last name.)

On the other hand California Republican Rep. Richard Pombo seemed to have the biggest cheering section in the stands, complete with signs looking like a throw back to Banner Day at Shea Stadium.

And like a kid in a candy store, I couldn’t get enough of the conversations with some of the most powerful men and women in America. Conversations about baseball – whether or not they would start, come off the bench or the ability of the DC-metro area to sustain and support a Major League team. The bi-partisan consensus was, yes, not only can the DC-metro area support a Major League team it is long overdue to get a team.

“It’s a great baseball town. They’re starving for it,” said Illinois Democrat Rep. Marty Russo, who wore a Chicago White Sox uniform.

“DC is a major city. Any place that can have the hunger for so many years will thrive. The selfish response is I’m a big fan and would attend,” said New York Republican Rep. John Sweeney in a Yankees uniform.

Without a doubt, this was a night of baseball, not politics as Rep. Russo and Rep. Steve Buyer (R-IN) in his Indiana Hoosiers uniform, were discussing baseball across the foul lines and not policy across party lines.

This was not a night of position papers, but who would play what position. Not a night about strategic defense initiatives, but just defense. Not a night of pitching policy, but pitch counts.

Standing at home plate and facing the outfield, the Republicans naturally occupied the first base dugout – the one to the right, while the Democrats used the third base dugout – to the left. The public address announcer introduced the Republicans first, as the visiting team, determined by the fact that the Democrats won last year’s game. Then the Democrats were introduced – just like an all-star game.

I think the game should be played in alternating stadiums – one year in Bowie, Md. and the next year at G. Richard Pfitzner Stadium in Woodbridge, Va. the home of the Potomac Cannons. The Democrats should be home team in Maryland while the GOP should be the home team in Virginia.

Adding to the excitement, if that were at all possible, was Major League Baseball Commissioner Bud Selig throwing out the first pitch, having donned a Bay Sox jersey for the moment. Selig gave a number of interviews to network television stations, cable TV as well as radio. Not only did I meet the Commish, but I had a quick two-minute interview with him with regards to bringing baseball back to the DC-metro area and possible constriction or relocation of teams.

We also discussed big market vs. little market noting the success of the Seattle Mariners without the likes of Randy Johnson, Ken Griffey, Jr. and A-Rod (Alex Rodriguez). Selig said that Seattle should not be considered a small market and that their current pace would be difficult to maintain over a 162-game season. I suggested that the Minnesota Twins, a legitimate small market franchise, were playing sold ball, having been in first place most of the season, but Selig said “the season’s barely half over. Don’t rule out the Indians.”

The Indians are my dear friend Troy’s favorite team, who I would be remiss if I didn’t mention. Troy would have had as much fun as I did schmoozing with the Congressmen as I did all evening on the field and in the dugout throughout the game.

Although not in uniform, I did meet Rep. Tom DeLay (R-TX) and future team member Rep. Melissa Hart (R-PA). Hart, a freshman representative having just won her House seat last November, said she hopes to play in next year’s game.

Interestingly enough, and I will take a partisan swipe here, the Republicans had three women on their roster, while the Democrats, the alleged party of the people, had none. In fact, the three lady Republican House members, Rep. Shelley Moore Caputo (R-WV), Rep. Ileana Ros-Lehtinen (R-FL) and Rep. Heather Wilson (R-NM) each got into the game. Ros-Lehtinen, resembling Eddie Gaedel, and Wilson received huge ovations as they strode to home plate to take their turns at bat. Each of the three was delightful to talk to and interview.

The game itself was dominated by the GOP, led by the professional arm of Rep. Steve Largent (R-OK). Largent, an NFL Hall of Famer and one of the great receivers of all time, tossed a gem, yielding only one run, striking out seven and walking no one in a seven inning complete game shellacking of the Democrats 9-1. Wearing a Tulsa Drillers uniform, Double-A for the Texas Rangers, and in Texas Ranger colors, Largent wore number 34 and looked every bit like Nolan Ryan.

During the post-game party, which was invite only, Largent was presented with the MVP plaque. Minnesota Rep. Martin Sabo, coach of the losing Democrats, wished Largent well in his quest to become governor of Oklahoma in order to get him out of the House and off the GOP team.

Later during the party, Tim Johnson, PR aide to Rep. Mike Oxley (R-OH) said there would now be an 11-month recruitment period to replace Largent on the hill – that’s pitcher’s mound, not The Hill. And kudos to Johnson and Peggy Peterson, another Oxley aide for their stellar organizational skills as the game went off without a hitch, save for the tardiness of the players.

The party featured a spread of chicken, beef barbecue, pork barbecue, Cole slaw, Caesar Salad, traditional garden salad, beans, rolls, apple pie, three flavors of ice cream with toppings, beer, wine, soda and water.

Naturally, ESPN’s Baseball Tonight was on and the elected officials could track the play of their favorite teams. Rep. Adam Smith (D-WA) talked excitedly about his Mariners and said nothing good about the departed Griffey, Jr. A real fan, and he spoke candidly. A nice guy too. Also in the good guy column is Rep. John Baldacci (D-ME) who, in a University of Maine uniform, bragged about the Black Bears, as Maine has no Major League team.

Rep. Jeff Flake (R-AZ), sporting an Arizona Diamondbacks uniform, and I shared stories about one of my political heroes, Sen. Barry Goldwater. Having met and interviewed the late Arizona conservative six years ago at his home in Arizona, I was able to discuss Goldwater on a personal level with Flake, who headed up the Goldwater institute for seven years before getting elected to the House. Flake couldn’t have been nicer.

Nor could have Rep. Chris Smith (R-NJ), who ironically was clad in a Trenton Thunder uniform. Ironic because the Thunder is the Double-A affiliate of the Boston Red Sox and Smith is a Yankee fan. Smith, as it turns out, when not in his home district in New Jersey, lives in Herndon of all places – my central coverage area with the paper.

Overall, this was quite an experience including meeting a team of Korean documentary filmmakers (I’ve coined a new word – documentariests) who were creating a documentary about the American Congress and how they work hard, as I was told by their translator an American-educated Korean. In fact I provided some background for his team about some of the representatives and baseball as well. Some of the rules were altered for the game – such as a liberal substitution policy.

Meeting the Commissioner and Congressmen was exciting, now I just hope the pictures I took and had taken come out to go along with the balls I got signed – one by Bud Selig and one by most of the Republicans. I’m looking forward to next year’s game.

Sanford D. Horn is a writer living in Sterling, VA.