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Taxing The Miami Dolphins

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The Tampa Tribune

Published: November 1, 2008

Don't think tax rates matter to business decisions?

Ask H. Wayne Huizenga, the owner of the Miami Dolphins, who declared earlier this week that he intends to sell up to half his ownership in the NFL franchise before next year.

Why?

Because as he told a Florida newspaper, Barack Obama "wants to double the capital gains tax, or almost double it. I'd rather give it to charity than to him."

Further Reading: 7/16/2008 on Pittsburgh Stealers: "The death tax may force an NFL sale."

Obama is in fact proposing to raise the capital gains tax to 20 percent from 15 percent - which would be an increase of 33 percent, but Huizenga is close enough for IRS work. His office confirmed to us that he stands by that statement, though he prefers not to elaborate on it.

Huizenga also has NFL company. In July, we wrote about the Rooney family's musings about selling part of the Pittsburgh Steelers to avoid the 45 percent death tax rate.

We saw a similar tax effect in 1992 when Bill Clinton raised tax rates.

The Wall Street crowd accelerated income, bonuses and stock sales to pay the 31 percent rate, not the expected higher rate.

One of those who cashed out in 1992 was Robert Rubin, who would soon join the Clinton Administration.
Dolphin fans can debate Mr. Huizenga's virtues as an owner, but he's right about taxes.

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