WASHINGTON (AP) - A potential new tax on seven-figure salaries for employees of non-profits hasn't deterred schools from doling out huge contracts to new coaches.
Both the House and Senate versions of the GOP tax overhaul include a new 20 percent excise tax on salaries of $1 million or more paid by universities and other nonprofits. More than 100 football and basketball coaches pull in seven figures.
But football powers have continued to pay the market rate for proven coaches. Jimbo Fisher got a 10-year, $75 million deal at Texas A&M, potentially putting his employer on the hook for $15 million in taxes.
Economists and other experts say the tax is unlikely to drive down coaches' salaries.
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