[Updated: After posting the note below, I was advised that the city already has a tax on local income received by non-resident professional athletes.
Here's a link. What I'm talking about below is related, but perhaps a little different. The existing rule is a form of income tax. (Of course, it should be possible to raise the rate and increase the $2-$3 million already generated annually.) What I'm talking about is the same kind of "usage fee" or "service fee" that is the conceptual driver behind the "tuition tax."]
This morning's PG editorializes that the proposed "tuition tax" on Pittsburgh college students isn't a great idea -- but the PG, like the mayor, can't think of any other solution to Pittsburgh's pension deficit. The underlying problem, according to the PG, is that "Harrisburg" won't solve Pittsburgh's pension problems, and Pittsburgh doesn't want to let Harrisburg take over the pension system. (Why the paradox in that statement is ignored still puzzles me.)
But there are other solutions.
Here is one:
Who is better able to afford paying an extra sum per year for the privilege of enjoying all the amenities, services, and privileges afforded by the City of Pittsburgh? College students, or professional athletes?
Don't enact a "tuition tax." Instead, enact an "amusement tax": Every pro athlete who competes in Pittsburgh, including both Steelers, Pirates, and Penguins and players visiting teams -- full active rosters, whether or not they play a particular game -- could pay a very modest percentage of his annual income (salary plus prorated bonus plus endorsements) to the City of Pittsburgh. Athletes already pay a pro-rated income tax to states where they compete as visitors, so the concept of local taxes isn't foreign. Given the number of athletes, the number of games in Pittsburgh in each sport, and the amount of money needed ($15 million per year for the pensions, plus a $1 million in pocket change for the Carnegie Library system), it shouldn't be too difficult to come up with an appropriate tax rate.
Would this embolden other cities with pro sports teams to do the same? Sure. I think that pro teams generally take more than they give from their host cities as it is.
Would this serve as a disincentive to pursue a career as an athlete rather than a career in some other field? Maybe. I think that a little disincentive to be a pro athlete, and some incentive to do something else, would be great.
In case it seems to overreach to cover the whole $16 million gap by taxing athletes, we might collect, say, half the money from pro athletes and half the money elsewhere.
Just the other day,
according to the paper, "The Rivers Casino will pay its $7.5 million a year toward construction of the new arena in two installments under an agreement approved by the city-Allegheny County Sports & Exhibition Authority board." What if the Sports & Exhibition Authority board sucked it up for the good of the city, its libraries, and its college students, and agreed to turn that money over to the mayor? Obviously, that would leave the arena looking for cash, and Pens fans and other prospective attendees of arena events would scream foul. But who is better able to bear the cost (and should bear the cost) of arena construction? Those who will use the arena, or ...
It's a borrow-from-Peter-to-pay-Paul situation regardless of how you add it up. The only question is who is going to be Peter, and who is going to be Paul.