One of the biggest complaints the American people have about the federal government is that Washington, D.C. is infected with cronyism and special-interest favoritism. In the area of tax policy, the corporation with the best tax lobbyist usually gets preferential treatment.
Look at the Professional Golfers Association of America (PGA) as a case study in how wealthy, professional golfers are getting a subsidy from the federal government to make even more money. Just like the U.S. Chamber of Commerce, the PGA enjoys tax-exempt status as a 501(c)(6) nonprofit organization.
This tax status has been a big moneymaker for the PGA. ESPN reported back in 2013, that “the PGA Tour’s nonprofit business model has allowed it to avoid paying up to $200 million in federal taxes over the past 20 years, and its tournaments—designed to benefit local charities—operate in ways that fall short of acceptable charitable practices.” While the Biden Administration is intent on soaking the middle class for more taxes, apparently wealthy sports organizations don’t make that list. Just goes to show you, yet again, how unfair the U.S. tax system is; the middle class gets soaked while the well-connected elites game the tax code to add tens of millions annually to their bottom lines.
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