Cord Byrd: “I strongly support S. 122, the Stop Tax- exempt Arena Debt Issuance Act--let me say that again--the Stop Tax- Exempt…”

“I strongly support S. 122, the Stop Tax- exempt Arena Debt Issuance Act--let me say that again--the Stop Tax- Exempt Arena Debt Insurance Act--a measure that has been introduced by Senator Moynihan. This bill would amend title I, section 141, of the Internal Revenue Code by closing a tax loophole that has been beneficial to a select few individuals: owners of professional sports teams. For the average taxpayer, however, it is nothing more than professional sports welfare. Provisions of the 1986 Tax Reform Act were supposed to prevent professional sports teams from building sports facilities with tax- exempt bonds. Under the law, professional sports teams are categorized as a private entity, and, as such, the issuing of private activity bonds is taxed. However, due to clever maneuvering, professional sports teams have circumvented the intent of the law by encouraging State governments to issue governmental bonds, which are exempted from Federal taxes, for the purpose of constructing large sports facilities.”