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: Sen. Scott, Rick [R-FL]
Target Audience
Population: People engaging with or stakeholders in international multi-sport competitions
Estimated Size: 50000000
- The bill impacts organizations or entities whose primary purpose is the promotion of international multi-sport events.
- The target organizations are those with gross receipts exceeding $100 million.
- The International Olympic Committee is explicitly mentioned as affected.
- Major sports events like the Olympics involve significant global broadcasting and media coverage.
- The IOC has a global economic and social presence, influencing multiple sectors.
- Stakeholders include athletes, national teams, sponsors, broadcasters, host cities/countries, and global viewers.
Reasoning
- Understanding the target population is crucial since the policy affects entities like the International Olympic Committee (IOC) and thereby has indirect impacts on various stakeholders including athletes, broadcasters, and local economies hosting these events.
- Individuals in the US with varying degrees of engagement with international multi-sport events form the target group for assessing well-being impacts.
- Considering the budget restrictions, the policy appears aimed at reallocating funds or resources that previously benefited tax-exempt organizations to other uses potentially benefiting the general population or other more domestically focused activities.
- Interviews cover a range of people from directly impacted professionals like athletes and broadcasters to individuals who are indirectly affected through cultural or economic participation.
Simulated Interviews
professional athlete (Denver, CO)
Age: 32 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Concerned about potential funding cuts due to loss of tax benefits to sports organizations.
- Worries that reduced funding might affect training facilities and support provided to athletes.
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 | 5 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 8 |
media executive (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- Believes the policy might lead to a shift in how big sporting events are monetized.
- Sees potential for growth in domestic sports coverage if Olympics become less financially advantageous.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 8 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 9 |
sports journalist (Boston, MA)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Worried about the availability of overflow benefits such as international networking opportunities that Olympics coverage provides.
- Believes it might lead to a decreased focus on international sports news.
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 | 5 | 7 |
| Year 20 | 6 | 7 |
business owner (Atlanta, GA)
Age: 53 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- Sees potential for increased marketing costs and reduced customer interest if Olympic events get less popular.
- Plans to diversify offering to include more domestic sports packages.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 5 | 6 |
| Year 20 | 6 | 6 |
student (New York, NY)
Age: 23 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Believes decreased funding and international focus might shift career opportunities away from international relations to more regional focuses.
- Worries about the availability of internships and job opportunities linked to international sporting events.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 6 | 8 |
| Year 3 | 5 | 8 |
| Year 5 | 5 | 8 |
| Year 10 | 6 | 8 |
| Year 20 | 7 | 9 |
retired (Miami, FL)
Age: 67 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- Feels nostalgic ties may wane as Olympics potentially change.
- Hopes the spirit of the games continues despite financial adjustments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
public relations manager (Salt Lake City, UT)
Age: 37 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- Worried that loss of tax advantages might reduce the frequency or scale of sponsorship deals.
- Consulting on ways to optimize brand strategies with less international exposure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 8 |
event planner (Seattle, WA)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- Thinks he should diversify into more locally varied events beyond Olympic-based.
- Plans to expand into other areas of sports entertainment to mitigate risks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 8 |
marketing coordinator (Houston, TX)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- Worries about reduced scope for marketing campaigns centered on Olympic branding.
- Exploring alternative sports and cultural events for promotional material.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
sports economist (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 5/20
Statement of Opinion:
- Believes removing tax exemptions might result in a more level playing field for local sports.
- Says it's an interesting policy move with potentially wide-ranging economic effects.
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 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $500000000 (Low: $400000000, High: $600000000)
Year 3: $500000000 (Low: $400000000, High: $600000000)
Year 5: $500000000 (Low: $400000000, High: $600000000)
Year 10: $500000000 (Low: $400000000, High: $600000000)
Year 100: $500000000 (Low: $400000000, High: $600000000)
Key Considerations
- The assumption that major organizations will not relocate to avoid these taxes is critical to the revenue projections.
- There might be lobbying and pushback from the sports communities, given the potential financial impact.
- Potential impacts on domestic hosting of events must be considered in terms of both economic activity and national prestige.