The usual divisive political rhetoric oozed out of Washington in December when President Trump signed the Tax Cuts and Jobs Act, the $1.5 trillion rewrite of the tax code. Republicans roared with approval, while Democrats seethed with anger.
The reaction inside college athletic departments, not the typical venue for a response to new tax laws, was one of mystery. Athletic directors nationwide wondered how a couple of provisions would impact their coffers.
Donors no longer will be able to claim up to 80 percent of donations made to purchase tickets as a deductible contribution to charity, and universities will be responsible for a 21 percent excise tax on annual compensation above $1 million that goes to any of the university’s five most highly compensated employees.