Bill Overview
Title: IOC Act
Description: This bill eliminates the tax exemption for any organization or entity whose primary purpose is the promotion of international, multi-sport, athletic competitions, and that has gross receipts in in excess of $100 million for any of the 3 preceding taxable years (e.g., the International Olympic Committee).
Sponsors: Rep. Waltz, Michael [R-FL-6]
Target Audience
Population: Individuals participating in or viewing international multi-sport competitions (e.g., the Olympics)
Estimated Size: 250000000
- The bill targets organizations involved in international, multi-sport competitions with significant financial receipts, like the International Olympic Committee (IOC).
- Key stakeholders in these organizations, including international athletes, sporting event organizers, host cities, and sponsors, may be impacted indirectly.
- The bill could affect the financial planning and operations of organizations like the IOC, subsequently impacting the funding and organization of international sporting events.
- The messaging around the Olympics and other international competitions may change as these organizations respond to the new tax climate.
Reasoning
- The bill specifically targets large organizations with significant financial inflows, such as the IOC, affecting their tax status. However, individuals are impacted indirectly through changes in funding, support, or event management.
- American athletes, sponsors, and organizations linked to international multi-sport competitions may experience shifts in financial support or opportunities.
- The average American sports fan might see differences in media coverage or the way these events are hosted, albeit their personal financial situation or wellbeing might not change significantly due to this policy.
- The budget constraint implies that impact assessments might focus on key affected areas, such as sponsoring entities and athletes, rather than the general public viewer.
- Despite the large estimated global impact, within the US, the likely direct impact on the general population will be minimal, focusing more on the sports community.
Simulated Interviews
Professional Gymnast (Los Angeles, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- If this policy reduces the funding available for our training or competitions, it will definitely affect us.
- The Olympics are a huge part of my career, and any financial constraint on organizing committees could mean fewer opportunities for athletes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 5 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 5 | 7 |
Sports Marketing Executive (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- This will probably complicate the relationship with the IOC, affecting our marketing strategies.
- There are immediate concerns about increased costs and reduced scope for branding at such events.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
School Physical Education Teacher (Houston, TX)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- The policy might affect how we promote sports at school, especially if the Olympics lose some spotlight.
- However, direct impact on my job or happiness is unlikely.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Olympic Venue Manager (Salt Lake City, UT)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- This could influence future bidding and hosting opportunities, potentially reducing our city's involvement in Olympics-related activities.
- While venue management planning can adjust, there could be fewer improvements or enhancements in the absence of IOC-led funding.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 5 | 7 |
| Year 20 | 5 | 7 |
Tech Start-Up Founder (San Francisco, CA)
Age: 27 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- As a small business involved indirectly, changes in profitability of clients like the IOC could trickle down to us.
- We'll have to be more careful with forecasting and may need to diversify our client base.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 9 |
| Year 2 | 7 | 9 |
| Year 3 | 7 | 9 |
| Year 5 | 7 | 9 |
| Year 10 | 7 | 9 |
| Year 20 | 7 | 9 |
High School Student (Chicago, IL)
Age: 17 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- I dream of swimming in the Olympics one day, but if this policy affects athlete funding, my path might be harder.
- It's important that athletes still receive the support they need to train and compete.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 5 | 8 |
| Year 10 | 5 | 8 |
| Year 20 | 4 | 8 |
Corporate Sponsor Liaison (Atlanta, GA)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 2/20
Statement of Opinion:
- Our main concern is how the IOC will adapt, which will influence our sponsorship commitments.
- This could redefine how we engage with both international and local sports communities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 4 | 7 |
| Year 10 | 4 | 7 |
| Year 20 | 5 | 7 |
Sports Journalist (Denver, CO)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 10/20
Statement of Opinion:
- The policy might not change how the Olympics are reported, but could affect the stories around sponsorships and host cities.
- There might be new angles to explore as organizations adjust to these rules.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Sports Agent (Portland, OR)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 8.0 years
Commonness: 5/20
Statement of Opinion:
- The focal points will be around securing sponsorships as IOC adjusts to new tax conditions.
- Our athletes' success depends on stable financial support, which this policy might disrupt.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 6 | 8 |
| Year 3 | 6 | 8 |
| Year 5 | 6 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
Retired Audience Member (Boston, MA)
Age: 62 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 20/20
Statement of Opinion:
- The policy might not change how much I enjoy watching the Olympics, but could change presentation or coverage.
- As a viewer, my main hope is that such events remain accessible and engaging.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $10000000 (Low: $5000000, High: $15000000)
Year 2: $10000000 (Low: $5000000, High: $15000000)
Year 3: $10000000 (Low: $5000000, High: $15000000)
Year 5: $10000000 (Low: $5000000, High: $15000000)
Year 10: $10000000 (Low: $5000000, High: $15000000)
Year 100: $10000000 (Low: $5000000, High: $15000000)
Key Considerations
- The organizations affected are international and may choose to relocate operations to mitigate tax impact.
- There may be reputational and ethical considerations regarding the perception of taxing international sports bodies, traditionally seen as promoting health and international cooperation.
- The response of sponsorship and event-hosting markets should be monitored for longer-term socioeconomic impacts.