Show Your Man ManIn ManIn ManIn In Washington By US U.S. Senator Orrin G. G Hatch Universities Feel the Effects o of f Balancing the Budget The Internal Revenue Service has handed down a preliminary decision in indicating indicating in in- it intends to tax colleges and universities for lor income received from the broadcast rights of 01 football and basketball games IRS agents in Texas have told Texas Christian University Southern Metho Methodist list University and the Cotton Bowl Association Association Association tion they intend to tax broadcast revenues in the future and retroactively for lor the past three years The IRS contends the broadcast money is not related to the educational business of 01 colleges and universities and therefore violates their tax exempt status If the IRS succeeds succeeds succeeds suc suc- alone will be taxed more than 1 SI million According to J JM M Moudy Chancellor of 01 We do not feel leel that is engaged in a trade or business unrelated to our exempt purpose through allowing our athletic events to be broadcast broad broad- cast The income from such broadcasts is is used in the total intercollegiate athletics program Even though the income is derived primarily from football and basketball itis it itis itis is also used wed in the support of 01 other sports which produce no income including Title 9 pro pro- grams Broadcast revenues at colleges and universities including those in Utah have been exempt from federal taxation for more than 30 years Suddenly without notice or public hearing some bright and inventive federal revenue agent has decided to test the system with an attack on the nations nation's collegiate athletic programs Looked ai at in context this proposal is not inconsistent in inconsistent inconsistent in- in consistent with other Carter Administration programs designed to add taxes in an effort to fulfill the Presidents President's campaign promise to balance the federal budget by 1981 For example are very familiar with the attempt attempt at at- tempt to kill the Central Utah Project and the subsequent loss of 01 nine other major water projects across the country supposedly supposedly supposedly sup sup- to save money We have also seen the Carter energy proposal which while promoting conservation conservation conservation conserva conserva- tion would tax Americans like they have never been taxed before belore In addition InS HIS Commissioner J Jerome Je Jerome crome c- c rome Kurtz has recently suggested that workers' workers fringe benefits such as parking and reduced price purchasing should also be taxed These new programs of 01 fiscal conservatism show that the Carter Administrations Administrations Administrations Administration's Ad ministrations ministration's policy to balance the budget without limiting the unwarranted unwarranted unwarranted un un- warranted extension of 01 social programs or curtailing curtail ing going on-going burdensome pet projects is alive and well Colleges and universities universities cities across the nation are going to suffer the taxing tax taxing ing consequences of the latest program |