Tag: Georgetown University

Sports ‘Donations’ a Flagrant College Foul

I love me some Georgetown University basketball, and am happy to pay for the privilege of possessing season tickets. (Well, that is when the Hoyas win pretty regularly and don’t deliver too many abominations like this one.) I’m also more than willing to make the hoops club “donation” that’s required to secure my seats. But it’s high time to end the ludicrous college sports scam—especially in light of our fast-approaching rendezvous with the “fiscal cliff”—that is the tax deduction for ticket-securing “charitable” donations.

My forced giving, to be honest, is pretty small: $100 per seat for some decent, lower bowl (though not center court) seats. But it’s not like I’m spending the dough to support, say, a new science center, or endow a professorship. No, it’s going to support big-time, constantly televised, money-making sports entertainment. And, of course, it is the fun of being an in-person fan—not my selfless desire to, say, engineer mitochondria to better serve humanity—that is animating my “charity.” Nonetheless, 80 percent of my donation is tax deductible.

At many big-time sports schools, and for better seats than mine, such forced philanthropy can be much pricier. At some institutions, such as the University of Texas and the University of North Carolina, it is impossible to nail down just how much people have to donate per seat beyond sticker prices because one accumulates donation points over time. Just to make it onto the UT benefits chart, however, you have to donate at least $150, and the top-line is $25,000. Texas A&M lets you know that for “priority” football tickets you’ll have to give between $45 and $3,900 per seat. And for most of the lower-bowl seats at the University of Kentucky’s Rupp Arena, basketball season tickets require donations of between $850 and $5,000. But don’t worry—part of the price can be handled by corporate matching funds!

If people want to donate generously to college sports programs—including cash-cow football and basketball—that’s fine. And I don’t want government getting any more money than it already has … and flushes down noble-sounding toilets. But giving favored tax status to forced donations for season tickets, as if one were donating to famine relief or cancer research? Even without the nation facing a $16 trillion—and growing—debt, that’s ridiculous.

Cross-posted from SeeThruEdu.com

What’s Wrong with Imported Oil?

In a speech today at Georgetown University, President Obama called for a goal of cutting America’s oil imports by one-third within a decade. Like all efforts to wean Americans from big, bad imports, such a policy will mean we will all pay more than we need to for the energy that helps to power our economy.

I’ll leave it to my able Cato colleagues to dissect the president’s proposal in terms of energy policy, but in terms of trade policy, this is about as bad as it gets.

We Americans benefit tremendously from our relatively free trade in petroleum products. Like all forms of trade, the importation of oil produced abroad allows us to acquire it at a price far lower than we would pay if we had to rely more heavily on domestic oil supplies.

The money we save buying oil more cheaply on global markets allows our whole economy to operate more efficiently. Oil is the ultimate upstream input that virtually all U.S. producers use to make their final products, either in the product itself or for shipping. If U.S. manufacturers and other sectors are forced to pay sharply higher prices for petroleum products because of import restrictions, their final goods will cost more and will be less competitive in global markets. If households are forced to pay more for gasoline and heating oil, consumer will have less to spend on domestic goods and services.

The president talked in the speech about the goal of not being “dependent” on foreign suppliers, but most of our oil imports come from countries that are either friendly or at least not in any way an adversary. According to the U.S. Department of Commerce, one third of our oil imports in 2010 came from our two closest neighbors and NAFTA partners, Canada and Mexico. Another third came from the problematic providers in the Arab Middle East and Venezuela (none from Iran, less than one-third of 1 percent from Libya.) The rest came from places such as Nigeria, Angola, Colombia, Brazil, Russia, Ecuador and Great Britain.

Even if, by the force of government, we could reduce our imports by a third, there is no reason to expect that the reduction would be concentrated in the problematic providers. In fact, oil is generally cheaper to extract in the Middle East, so a blanket reduction would probably tilt our imports away from our friends and toward our real and potential adversaries.

In one speech, the president has managed to state a policy goal that is bad trade policy, bad security policy, and bad foreign policy.