My, what a lovely "tax reform act" you've got, Senator Pickle!

I have long believed that there is no better recipe for outrageously stupid public policy than mixing politicians with sports. A fine example comes this week from the Wall Street Journal, which reports that the current building boom for college football stadiums is being financed partly by leasing expensive luxury suites to fans, who can then deduct 80% of the price from their taxes, on the comical grounds that the expenditure amounts to "charity." How could such a loophole get created, especially when game tickets themselves are not eligible? A quick look inside the sausage factory:

In 1986, the Internal Revenue Service ruled that [charitable] gifts [to universities] required to obtain a "substantial benefit," such as season tickets, are not deductible. Nevertheless, a tax-reform act passed that same year allowed full deductions for contributions for the right to buy seating at the University of Texas and Louisiana State University. The provision was pushed by the late Texas representative J.J. Pickle, a University of Texas alumnus and influential member of the House Ways and Means Committee, and the late Louisiana Sen. Russell Long, an LSU graduate and longtime member of the Senate Finance Committee.

In 1988, Congress extended the deduction to all universities but reduced it to 80%.

Additionally, the Journal reports, the stadiums are often built with tax-exempt bonds; tickets and concessions can be written off as buxiness expenses, colleges can deduct the millions they pocket by selling naming rights, and so on. Best quote:

"I don't see a thing in the world wrong with" the 80% deduction, says oil executive W.A. "Tex" Moncrief Jr., who leases a luxury suite at the University of Texas stadium. "That money is used to further many educational activities."