General Discussion

Omaha Steve

(99,660 posts) Mon Jan 5, 2015, 08:07 PM Jan 2015

Does the University of Michigan's New Football Coach Need Food Stamps?

Jim Harbaugh, new head football coach at the University of Michigan. (Photo: MGoBlog)

http://www.truth-out.org/opinion/item/28354-does-the-university-of-michigan-s-new-football-coach-need-food-stamps

Monday, 05 January 2015 10:27
By Dean Baker, Truthout | Op-Ed

One of the big end of the year sports news items was Jim Harbaugh leaving the San Francisco 49ers to become head football coach at the University of Michigan. Reportedly, his salary at the University of Michigan will be $7 million for the first year. If that doesn’t sound like the income of a food stamp beneficiary then you better look more closely.

One of the arguments for shelling out big bucks for Harbaugh is that a winning football team will encourage enough contributions from devoted University of Michigan alums to easily cover the $7 million paid to Harbaugh. Insofar as this is the case, taxpayers are picking up a large chunk of Harbaugh’s salary.

The point here is sufficiently straightforward that even a Republican member of Congress should be able to understand it. The University of Michigan is a tax exempt institution. This means that people who make contributions to the University get to deduct these contributions from their taxable income. Since most of the money the university gets comes from people in the highest tax bracket, the government is effectively paying 40 cents of each dollar that these people contribute to the university in the form of lower taxes. If all of Coach Harbaugh’s $7 million salary was covered by donations from high income individuals, the government would effectively be subsidizing his pay to the tune of $2.8 million.

If this logic is troubling, imagine that I was renting an apartment from my landlord for $1,000 a month. Suppose my landlord told me that I didn’t have to pay July’s rent if I hired his slacker son as an intern. In this case, my landlord would effectively be paying me $1,000 to hire his son.

FULL story at link.

12 replies

= new reply since forum marked as read

Highlight:

Does the University of Michigan's New Football Coach Need Food Stamps? (Original Post) Omaha Steve Jan 2015 OP

Faulty logic, IMO SickOfTheOnePct Jan 2015 #1

So deciding which dollar we tax.... daleanime Jan 2015 #4

Not sure what you're talking about SickOfTheOnePct Jan 2015 #7

well the point is that it WOULD be the government's money hfojvt Jan 2015 #10

Ah, personal attacks SickOfTheOnePct Jan 2015 #11

K&R.... daleanime Jan 2015 #2

The money wouldn't be there SickOfTheOnePct Jan 2015 #3

Don't see this as a good thing. daleanime Jan 2015 #5

I don't either SickOfTheOnePct Jan 2015 #8

Most revenue comes from ticket sales, merchandise, and media rights. Travis_0004 Jan 2015 #6

There were two different known groups that started raising $ to get him in Oct. Omaha Steve Jan 2015 #12

Giving Jim Harbaugh another million is an act of charity. lumberjack_jeff Jan 2015 #9

SickOfTheOnePct

(7,290 posts)

1. Faulty logic, IMO

Reply to Omaha Steve (Original post)

Mon Jan 5, 2015, 08:13 PM

Jan 2015

Not collecting a tax is not the same as paying money.

daleanime

(17,796 posts)

4. So deciding which dollar we tax....

Reply to SickOfTheOnePct (Reply #1)

Mon Jan 5, 2015, 08:22 PM

Jan 2015

means nothing?

Remember, some one making $25,000 a year are unlikely to make any donation to a college. Much less a large one.

SickOfTheOnePct

(7,290 posts)

7. Not sure what you're talking about

Reply to daleanime (Reply #4)

Mon Jan 5, 2015, 08:27 PM

Jan 2015

Or how it relates to what I said.

My only point is that not collecting money is not the same as paying money out. If I don't give my daughter her monthly allowance, it's not the same as her paying me. If I deduct medical expenses and don't pay $100 in taxes on the amount I deducted, that's not the same as the government paying me $100.

If the idea is that by me saving $100 in taxes by deducting medical expenses is the same as the government paying me $100, then the necessary assumption is that it's the government's money to begin with, and not mine.

hfojvt

(37,573 posts)

10. well the point is that it WOULD be the government's money

Reply to SickOfTheOnePct (Reply #7)

Mon Jan 5, 2015, 08:48 PM

Jan 2015

if NOT for a certain loophole.

Supposed you are currently paying $6,000 in taxes every year. Now I come along as your saviour thanks to the campaign contributions you gave me, and I introduce legislation, call it Law X, that in some manner reduces your tax bill (on the same income) by $4,000.

Then it is perfectly logical to say that Law X gives you $4,000 even if the $4,000 is your money that you stole fair and square from the workers you underpaid (for hypothetical example).

But I am wondering if your username was not too long or something. Did the words "beingattacked" get lopped off by the software?

SickOfTheOnePct

(7,290 posts)

11. Ah, personal attacks

Reply to hfojvt (Reply #10)

Mon Jan 5, 2015, 09:11 PM

Jan 2015

Always the sign of a winning argument!

What "would have been" the government's is irrelevant...it's what I owe at the end of the year when all is said and done.

daleanime

(17,796 posts)

2. K&R....

Reply to Omaha Steve (Original post)

Mon Jan 5, 2015, 08:18 PM

Jan 2015

No better way to spent the money? Like maybe making sure their students don't start their after school lives in debt thousands of dollars?

SickOfTheOnePct

(7,290 posts)

3. The money wouldn't be there

Reply to daleanime (Reply #2)

Mon Jan 5, 2015, 08:20 PM

Jan 2015

without the new coach. These donors are willing to pay for a winning team...a so-so or losing team? Not so much.

daleanime

(17,796 posts)

5. Don't see this as a good thing.

Reply to SickOfTheOnePct (Reply #3)

Mon Jan 5, 2015, 08:25 PM

Jan 2015

SickOfTheOnePct

(7,290 posts)

8. I don't either

Reply to daleanime (Reply #5)

Mon Jan 5, 2015, 08:29 PM

Jan 2015

But it's a fact of life. People are free to donate their money as they choose, to support what they choose. Wouldn't be my choice, if I had that kind of money, but I don't.