New tax law makes PSD donations non-tax-deductable
So, I just found out about this when I made my PSD payment for the 2018 season. Apparently PSD donations are no longer 80% tax deductible as donations to the university. I realize that with demand for Michigan tickets high, people will probably not care and will still foot the bill. But some schools have really tapped this out. For example, the ESPN article I link here says Duke basketball requires a $4,000 per seat donation. If you can't write that off anymore, that is a huge price increase.
What effect do people think this will have on ticket pricing? Will people just suck it up and pay anyway? Will schools adjust and find a different way to get money from people? Nothing ever gets cheaper so I can't imagine the tickets will. I only have 4 tickets in the Blue, so my PSD was only $840. The tax savings writing off $672 was not that big, but I know lots of people are getting hit much harder than me on this.
http://www.espn.com/college-sports/story/_/id/21437392/college-administ…
Please try not to make this into a political thread--try to keep it to a discussion of how the new tax law will affect college athletics. Also, i realize this is insignificant next to the crap going on in EL. Just happened to find out about it as I paid my PSD.
January 27th, 2018 at 12:04 AM ^
January 27th, 2018 at 12:21 AM ^
January 27th, 2018 at 7:54 AM ^
January 27th, 2018 at 8:52 AM ^
January 27th, 2018 at 8:54 AM ^
Many people may choose to stop buying season because that $6400 reduction in taxable income is significant. The athletic departments will need to lower the PSDs to keep season ticket holders on and will look to other ways to offset those decreases which would potentially lead to increases in ticket prices, concessions and parking.
Luckily, Michigan's PSDs are not high compared to many other places. This will probably not have as much of an impact for us.
January 27th, 2018 at 9:24 AM ^
January 27th, 2018 at 10:30 AM ^
You're probably right. And at a place like Duke I'm sure there's a waiting list. What about football at MSU? Even if 5% of season ticket holders don't renew (in addition to normal attrition), that's going to hit the pocketbooks of the ADs and they will make it up in other ways.
January 27th, 2018 at 2:45 PM ^
Not a problem for staee as they will pay much less for their head coach than mork makes right now.
January 27th, 2018 at 4:19 PM ^
January 27th, 2018 at 8:39 PM ^
January 27th, 2018 at 8:18 AM ^
I agree that the pricing system was set up with this in mind, but that is a failure of the previous system. Much like high tax states that are threatening to sue because of the decrease in the SALT deduction. Essentially, many other parts of government were taking advantage of the old rule to steal tax money from the federal government and increase their own coffers.
January 27th, 2018 at 9:34 AM ^
January 27th, 2018 at 10:29 AM ^
January 27th, 2018 at 11:09 AM ^
January 27th, 2018 at 12:05 PM ^
I can only speak for myself, but I'm glad it's gone. I couldn't afford health insurance and I also had to pay a penalty. Plus the insurance was complete trash. Total BS. Now I have more money in my pocket.
January 27th, 2018 at 2:31 PM ^
January 27th, 2018 at 2:58 PM ^
January 28th, 2018 at 2:44 AM ^
January 27th, 2018 at 3:33 PM ^
Only in America would this get three upvotes.
Not having health insurance is irresponsible to both you and society as a whole. This has been explained already.
I know, I know. 'Murrica and personal freedoms and shit, but I'm personally glad the UK government helps subsidize my herpes meds.
January 27th, 2018 at 6:46 PM ^
People have lived without sick insurance for 30,000 years. It's called taking control of your health.
January 29th, 2018 at 3:46 PM ^
I'd love to hear your argument on how someone who is severely injured in a car accident and has to have emergency surgery isn't "taking care of [their] health".
This straw man is made of straws.
January 28th, 2018 at 2:30 AM ^
January 29th, 2018 at 4:30 PM ^
Am I reading this right that your entire family doesn't have health insurance?
What happens if your child (and I hope none of this happens) gets injured or gets cancer or something else and, instead of having some form of insurance to cover it, suddenly has no money saved up to go to college?
The obtuseness of these decisions simply astound me. We don't bat a fucking eye at paying $45,000 for a car but scoff when healthcare costs a portion of that.
January 27th, 2018 at 12:28 PM ^
The insurance companies are the ones doing the jerking. Jerking you around and jerking off your politicians.
January 27th, 2018 at 11:12 AM ^
and the money seekers (just about all humans do this) at the universities found a way to push the price of athletic tickets higher by giving their customers a partial refund paid for by the government.
Is purchasing tickets a tax deductable transaction? I certain don't think it should be.
January 27th, 2018 at 1:57 AM ^
January 27th, 2018 at 6:01 AM ^
January 27th, 2018 at 8:04 AM ^
January 27th, 2018 at 8:31 AM ^
January 27th, 2018 at 9:27 AM ^
January 27th, 2018 at 9:35 AM ^
January 27th, 2018 at 9:41 AM ^
January 27th, 2018 at 10:32 AM ^
January 27th, 2018 at 11:26 AM ^
January 27th, 2018 at 12:43 PM ^
January 27th, 2018 at 2:16 PM ^
You did not understand his point. If society should have more of it, then incentivize the money going there. In other words if the Governent wants to encourage corporations to donate to charity, they create a tax deduction for when they donate to charity.
Not that society should be taxed more or less or that people should have less income.
January 27th, 2018 at 5:06 PM ^
January 27th, 2018 at 1:03 PM ^
January 27th, 2018 at 1:23 PM ^
January 27th, 2018 at 5:13 PM ^
January 27th, 2018 at 1:44 PM ^
January 27th, 2018 at 2:11 PM ^
This is a very uniformed view of your own control regarding withholdings, deductions and itemization. No taxes were paid all year, a company withheld at your request and under your control a certain amount.
And compairing a 25% tax rate to slave labor is also highly uninformed.
January 27th, 2018 at 9:59 AM ^
January 27th, 2018 at 11:32 AM ^
January 27th, 2018 at 1:26 PM ^
January 27th, 2018 at 5:05 PM ^
January 27th, 2018 at 6:31 PM ^
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January 27th, 2018 at 7:55 PM ^
January 28th, 2018 at 2:25 AM ^
According to the 2015 IRS report and census 15 states paid more PER CAPITA in federal contributions than California, including Ohio. California had the most gross federal revenue, but thats because they are the largest state.
The reason Californians are paying less PER CAPITA in federal revenue is because the state of California has ginned up the system and failed to keep their state taxes in check thereby causing citizens in 15 states to subsidize the citizens of California for their lack of self discipline.
If a flat federal tax was implemented without ANY DEDUCTIONS, California would stand a strong chance of becoming the 2 largest state in the union.