Tuesday, February 9, 2016

Obama Doesn't Want Federal Tax Dollars Paying for Any More Sports Stadiums

Jasmin Palmer
AP Government and Politics
Current Event- Unit One

Obama Doesn't Want Federal Tax Dollars Paying for Any More Sports Stadiums

Summary:
President Obama is trying to revoke a federal tax exemption on the money cities and states use to finance new stadiums. If this was repealed, cities and states can pay for stadiums with tax-free bonds and will cost federal taxpayers around $4 billion in tax money on the existing stadium debt. It would also save close to $542 million over the next decade. However, economists have made a point that when it gets into public financing deals, the cost to enter stadiums would rise. Along with the price of getting into stadiums going up, repealing this tax wouldn’t end the practice of publically financing stadiums. Obama had already proposed repealing the tax exemption in his 2016 budget, but the Republican side of Congress didn’t take it much into consideration and as a result, it did not pass.

Analysis:

                This article is a good fit for unit one because it discusses the use of federal money and taxes. It can be considered a block grant issue, even though block grants aren’t supposed to have guidelines to them. It can also express the use of grants-in-aid because the federal government is giving states tax money to help buy and upgrade sports stadiums. This article also discusses revenue by the way it talks about taxes used for the public.


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