Tag Archives: states

Sporting events and human rights

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With FIFA’s recent awarding of the 2022 World Cup to Qater, some commentators have discussed whether the expansion of football (soccer) was the overriding principle in the decision. Ann Killion of Sports Illustrated suggests the decision didn’t really account for human rights at all:

Amnesty International and Freedomhouse.org raise serious concerns about Qatar from a human rights perspective. A 2010 report by the Office of the United Nations high Commissioner for Refugees rated Qatar “not free.” While women have been granted some rights in recent years, in practice they have very little ability to pursues those rights. In 1996 a gay American citizen was sentenced to six months in prison and 90 lashes…

Using a mega-sporting event as an instrument of social change is a dubious proposition. Did human rights improve in China after the Beijing Olympics –or are restrictions on freedom even greater now?

Is Qatar going to magically transform for one month of football 12 years from now? Are football fans going to be able to freely drink a cold beer in the 120-degree heat? Are women and gay visitors going to be accepted?

Somehow I don’t think the 22 men of FIFA’s executive committee really care.

Should a sports body, such as FIFA or the Olympics, take human rights into consideration? This is an interesting discussion. FIFA claims to be about football all over the world, hence their recent plans to have the World Cup be hosted on multiple continents. But whether this spreading is motivated solely by money or about truly sharing the world’s game is another matter.

If a sports body did require certain levels of human rights for countries to host (or to be able to send athletes), could this change any policies anywhere? And if it didn’t change state policies, would it be harming individual athletes who are not responsible for the stance of their home nation? The only example I can think of is that of South Africa where they were not allowed to participate in the Olympics until the apartheid policies changed.

On the basis of human rights, would athletes and nations be willing to boycott a worldwide sports body like FIFA or the Olympics?

Ultimately, we may have make a judgment about whether human rights or money is a bigger motivating factor for sporting bodies and nations. And if money does seem to be the main factor, the task for human rights advocates is to figure out how to counter.

Collecting online sales taxes

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With so many governments struggling to make ends meet, more states are looking at how to collect more sales tax revenue from online purchases. While Internet users may not like this, it seems like this is primarily being held up by complications about how to collect the money:

Under a 1992 Supreme Court ruling, businesses are responsible for collecting sales taxes on every sale they make in a state where they have a “physical nexus.” In other words, if the business has a store, an office or even a single sales rep in your state, it’s supposed to tack the state’s sales tax onto your bill.

Online retailers like Amazon.com typically don’t add the tax, except in the states where they’re based or where they have physical facilities like warehouses or distribution centers. Amazon, for example, collects sales taxes only in Washington (its home state), Kansas, Kentucky, North Dakota and New York.

The tax is still supposed to be paid, however. And if the seller’s not responsible, then you, the buyer, are. In general, you’re supposed to voluntarily file your own report and pay the standard tax on your out-of-state online purchases. (The appropriate forms are available on state tax agency websites, revenue officials are happy to remind you.)

But it turns out that the vast majority of Americans are completely unaware of those rules, so the forms don’t get filed and the taxes don’t get paid — to the tune of $8.6 billion in 2010 alone, the National Conference of State Legislatures estimates.

Two quick thoughts:

1. Why have states waited so long to get on this? Perhaps they didn’t want to look like the bad guys while things were relatively good.

2. If more of these taxes are paid, what effects would this have on Internet commerce? There would still be benefits to Internet purchases: no need to go out to a store, often a lot more options, delivery to your doorstep. At the same time, would this help traditional retailers?

The results of incentives for movie production

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Michigan Avenue has been a battleground for several recent weekends as Transformers 3 filmed scenes. According to the Chicago Tribune, the producers were partly drawn by the financial incentives offered by the state of Illinois. Though the film will spend more than $20 million in six weeks in the local economy, the state will offer at least a $6 million tax credit.

Illinois is not the only state playing this game:

Illinois is among 45 jobs-hungry states tripping over each other to financially woo movies and television shows. About half, including Illinois, offer tax credits, which cut producers’ costs by tens of millions of dollars at the expense of state budgets.

The pool of rivals has doubled in the past four years, and the lures, for the most part, are getting fancier, with only a handful of states pulling back, either due to recessionary pressures or local scandals. A just-released study by the Milken Institute indicates that aggressive plays, by states as well as overseas locales, are cutting into California’s historical grip on the business.

The rest of the article contains arguments for and against such aggressive tax credits. Regardless, it seems that the tax credit game may become a race to the bottom where states eventually find there is little economic benefit to having filming in their backyard.

Even if the filming doesn’t bring in many jobs (as opposed to short-term work) or other lasting benefits, filming can certainly draw attention. The filming of Transformers 3 has attracted a lot of local media attention, perhaps raising the profile of Chicago and Michigan Avenue for viewers.