Lawmakers in the State of Arkansas have decided that student-athletes are more important than the residents that they work for with a bill that was signed into law on Friday afternoon that only helps players making money off their NIL.
After first being introduced earlier in the month, the new law would allow student -athletes participating in collegiate sports within the state to be exempt from paying state income taxes that come from the money they make off Name, Image and Likeness tied to a university.
This means that the regular citizen, who is not making thousands or even millions from a school, will continue paying state income taxes, while the athlete will not have to pay a dime from money made within the state. If you are confused as to why lawmakers would sign such a bill that would only see college athletes prosper, while regular taxpayers are still paying state income taxes, look no further than a school like the University of Arkansas, where athletics run the show.
Obviously, this goes for other schools within the state, but it should be seen as a slap in the face to citizens not making money off NIL. Did these lawmakers think about the college student who is paying his or her way through school by working two jobs, while trying to make it to class, or even graduate?
This law creates a tax exemption for any income received that is NIL-related and paid by the school itself.
“Income received by a student-athlete from an institution of higher educations compensation for the use of his or her name, image, or likeness or as a percentage of institutional athletic revenue permitted by the institution of higher education’s governing athletic association or conference under this subchapter is exempt from state income tax,” the bill says.
Arkansas Lawmakers Worried About Regular Citizens? Come On
No, they aren’t worried about the folks who are driving Doordash, working at the local coffee shop, waiting tables at the local restaurant where these athletes dine. The only thing that matters in this instance is making sure that schools like Arkansas can get an upperhand on other universities that still have laws in their state that make sure athletes have to pay state taxes on money earned.
Senate President Bart Hester noted that this exemption would help universities in Arkansas attract athletes who bring a significant amount of revenue to the state. He also mentioned that a reason why they did this was to keep up with states like Texas and Tennessee, which do not have a state income tax.
Right, so just because other states work on a different model, and have been for decades, when it comes to taxes, this justifies the reasoning behind giving college athletes a tax break, while regular citizens who will continue living in the state have to keep paying.
Unfortunately, lawmakers are more worried about a college football or basketball player who might live in the state for only a few years, than the regular citizens who will be in Arkansas long after these athletes are gone.
So much for looking out for the regular citizen. But, I’m sure Arkansas fans will be excited about a future transfer portal addition.
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