Lawmakers want to prevent Donald Sterling from deducting NBA’s $2.5 million fine from his taxes

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The NBA calls its financial penalties “fines,” but they’re really forced charitable donations. They’re also, as Lamar Odom successfully argued to the IRS, business expenses.

You can bet Donald Sterling will try to write off his $2.5 million fine on his taxes.

On both the federal and state levels, lawmakers want to prevent that.

Kay Bell of Don’t Mess With Taxes:

Any deduction is just not right, say six House Democrats. So they’ve introduced the Stop Penalizing Taxpayers for Sports Owner Fouls Act of 2014.

The bill, which would apply to fines since Jan. 1, says:

In the case of an individual who owns (directly or indirectly) a professional sports franchise, no deduction shall be allowed under sub- section (a) for any fine or similar penalty paid to the professional sports league or association of which the franchise is a member.’’.

This would apply to Sterling – and was obviously proposed with him in mind.

As unsympathetic as Sterling is, I just don’t believe this law would be constitutional. If passed – which I suspect is unlikely to happen anyway – the courts could deem it ex post facto. In other words, the law punishes for acts committed before the law passed, usually a method not allowed in the United States.

Plus, I don’t like further complicating an already far-too-complicated tax code with a specific rule that singles out sports owners. Why should sports owners have their own tax code? What makes them different than the rest of us? (Yes, I’m against stadium subsidies, too. Don’t fix that problem by creating another.)

California lawmakers are proposing something similar. Phil Willon of the Los Angeles Times:

Two state Assembly members from Los Angeles filed legislation Tuesday that would prevent sports team owners from writing off league fines as a business expense when they file their state income tax returns.

The bill was filed by Democratic Assemblymen Raul Bocanegra of Pacoima and Reggie Jones-Sawyer of Los Angeles.

“Donald Sterling’s outrageous comments and historic fine should not be rewarded with a multimillion-dollar tax refund,” said Bocanegra, who chairs the Revenue and Taxation Committee. “This fine is intended as a punishment; it should not be used as a tax loophole.

The specifics of this bill are not clear, but I have the same concerns stated above.

At least one politician, though, might be on the right track – actually using the Sterling situation to do good. Willon:

Meanwhile, Rep. Brad Sherman (D-Sherman Oaks) has asked city, state and federal regulators to “prioritize” inquiries into any allegations that Sterling’s companies engaged in racial discrimination against people who sought to rent apartments at the billionaire’s residential properties.

In a letter to the regulators, Sherman cited a payment of more than $2.7 million that Sterling made in 2009 to settle federal claims that he discriminated against tenants. Sherman’s letter did not say there were allegations pending against Sterling or his companies.

If there aren’t new allegations against Sterling, it would be difficult to do much now after he’s settled, but yeah, the government should definitely be further investigating Sterling’s alleged housing discrimination. While they’re at it, apply that level of scrutiny to everyone – not just the headline-inducing Sterling – suspected of housing discrimination. That actually matters.

Pacers coach Nate McMillan slips and falls while arguing call (video)

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Nate McMillan slipped up in his handling of Victor Oladipo‘s early fouls during the Pacers’ Game 2 loss to the Cavaliers last night.

Then, the Indiana coach literally slipped while arguing that LeBron James should have been called for offensively fouling Lance Stephenson.

LeBron James: Reporter warned me about question on Gregg Popovich’s wife before live TV interview

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In her on-court interview with LeBron James following the Cavaliers’ Game 2 win over the Pacers last night, TNT sideline reporter Allie LaForce asked him about the death of Gregg Popovich’s wife.

LeBron appeared emotional as he gathered his thoughts.

That prompted some to criticize LaForce for ambushing LeBron on a sensitive subject on live TV. But that’s not what happened.

Uninterrupted:

LeBron:

I’m not on social media right now, but I was made aware through some friends through texts that a question was asked to me postgame, and a lot of people feel I was blindsided. That is absolutely false. Allie LaForce told me that she was going to ask the question and if it was OK.

And once I started talking about it, once we were on air, actually my emotions kind of took over. And that was just my emotions coming straight from my heart about the late Erin Popovich.

It’s unfortunate. It’s a tragic loss. My thoughts, my prayers, once again goes out to the Popovich family, to Gregg, to the Spurs family, to the whole Spurs fan base.

And also guys, please get off Allie LaForce’ back, because she followed the proper protocol and she warned me. So, get off her back, man. She’s very professional, and she does a great job at her work.

Like I said, thoughts and prayers to the heavens above. We all know the man above never makes mistakes, even when we question it. But it’s a sad, tragic time right now for the NBA family, and we’re all praying and hoping for the best.

It would have been surprising if LaForce hadn’t done that. Somewhere between nearly nobody and absolutely nobody in her position is trying to embarrass players.

PBT Extra: If Portland is going to turn series around it starts with Damian Lillard

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This was the year the Trail Blazers were going to break through. They were defending better as a team. There was some depth on offense. And Damian Lillard was playing at a level that will get him on many voters’ MVP ballots.

Instead, they are down 0-2 to Anthony Davis and New Orleans, having dropped both games at home to open the series. Portland is on the verge of being bounced in the first round for the third time in four years.

If Portland is going to turn this series around, it starts with Lillard, something I discuss in this latest PBT Extra. C.J. McCollum needs to get more buckets, Jusuf Nurkic needs to contribute more on both ends, but for Portland it all begins and ends with Lillard and it’s on him to start the turnaround.

Rockets easily overcome James Harden’s horrid shooting night, win Game 2 over Timberwolves

AP Photo/Eric Christian Smith
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James Harden shot 2-for-18 – the worst field-goal percentage (11%) on so many attempts in a playoff game in nearly a decade and the worst ever in a first-round game.

The Rockets still won by 20 because of their stout defense, a strong supporting star in Chris Paul and Harden’s foul-drawing ability.

Houston’s took a 2-0 series lead with a 102-82 win over the Timberwolves on Wednesday. Game 3 will be Saturday in Minnesota, but the top-seeded Rockets have seized firm control.

Every No. 1, No. 2 and No. 3 seed to take a 2-0 lead in a best-of-seven first-round series have won it. There’s little reason to believe Houston will become the exception.

The Rockets are no longer as reliant on Harden, the likely MVP who seemed to wear down last postseason.

They buckled down defensively before letting up in a fourth quarter that was entirely garbage time. Houston forced more turnovers (16) than allowed assists (15) and contested shot after shot.

It’s becoming increasingly clear the Timberwolves have no quick solution to the Karl-Anthony Towns problem, and it’s not simply a matter of deciding to feed him more. Yes, he can get favorable post matchups against the Rockets’ switching scheme. But Minnesota lacks quality entry passers. The Timberwolves are also short on shooters and need him to spread the floor – even if that skill is less-helpful after a switch. Towns scored just five points in 24 minutes tonight.

His teammates were barely, if at all, better. The focus has turned to Towns, but this was a far-wider letdown.

On the other hand, Paul (27 points and eight assists) led Houston’s offense. Gerald Green (21 points and 12 rebounds) got hot. Even Harden (7-of-8 on free throws) chipped in thanks to his elite foul-drawing ability.

The Rockets aren’t always the most enjoyable team to watch, and that was the case tonight. Mostly, because they put this game out of reach long before it actually ended.