President Donald Trump has outlined his tax priorities, including a proposed "no tax on tips" policy and tax cuts for American-made products. He also plans to eliminate special tax breaks for sports team owners, a move that could potentially impact future Republican donor support.
Trump's tax plan, which he detailed to House Republicans on Thursday, aims to deliver "the largest tax cut in history for middle-class, working Americans." The plan includes several other proposals, such as no tax on seniors' Social Security and no tax on overtime pay.
The president's proposal to eliminate tax breaks for sports team owners is particularly noteworthy. Currently, owners can write off a portion of the purchase price of a team through amortization over 15 years, even if the team remains highly profitable. Other loopholes include tax-exempt municipal bonds for stadium financing.
It remains unclear how much revenue Trump's tax plan could generate. However, it's worth noting that a large majority of donations from sports owners in major North American leagues since 2020 went to Republican campaigns. According to The Guardian, team owners across MLB, NFL, NBA, NHL, MLS, NWSL, and WNBA franchises gave over $124.8 million to Republican causes, representing 94.5 percent of the total.
The White House Press Secretary, Karoline Leavitt, stated that Trump is "committed to working with Congress to get this done." House Republicans will now need to negotiate and finalize plans to implement Trump's tax proposals through legislation.