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Congress Cracks Down on Safari Hunters
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ShareAugust 07, 2006 9:50 AM
Imagine going on the trip of a lifetime, stalking through the African jungle in pursuit of wild game. Imagine staying in luxurious hotels halfway across the world. Now imagine that this trip is tax deductible thanks to a federal loophole that allows trophy hunters to donate rare game to museums and then write off entire international hunting trips as tax deductible.
That's the way big game hunters wanted it, but members of Congress finally cracked down and closed the loophole last week.
Sen. Charles Grassley (R-IA) compared the system to going to Paris, purchasing a sweater, donating that sweater to charity and then getting a tax deduction for the entire trip.
"The phoniness of this kind of donation called out for congressional action," said Grassley. "It's ridiculous that a museum gets pennies for a dusty boar's head sitting in a railway car, while a donor gets big tax breaks for his African safari. We're taking the tax cheating out of taxidermy. Charitable donations are supposed to help the needy, not the greedy."
The loophole was officially closed when the Senate passed the Pension Protection Act of 2006.
Now, if someone donates trophy game to charity, they will be awarded fair market value for the cost of their trophy, not for the cost of their trip.
The value of a springbok -- that's a gazelle, for you novices -- trophy could have been worth as much as $5,000 when appraised on the former scale of "replacement value." The old system measured the worth of a trophy based upon the cost of traveling, lodging and purchasing equipment all in order to kill this animal.
"You could go on an extravagant safari, donate a trophy to a charity and write off the expense of your entire trip at the cost of the American taxpayer," said Michael Markarian, the Executive VP of the Humane Society of the United States.
According to estimates by the Joint Committee on Taxation, this change will credit the Treasury Department with $49 million over the next 10 years.
August 7, 2006 | Permalink | User Comments (4)
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Where are the teeth in this bill?
Without enforcement it only becomes fodder for a change in strategy.
Giving Animal hides and parts or even a whole animal to Charity seems to defeat the purpose of Charity.. but that is a personal opinion which I sincerely doubt congress either comprehends or gives a damn about.
The bill, if in truth it has any justice within it, should do more than try to extract taxes... it should indeed, provide a little humanity.
Stella
Posted by: stella watkins | Aug 7, 2006 11:46:31 AM
Damn. And here I was thinking this was a "do nothing" Congress.
Oh well, the jig is up. Now I gotta go and cancel my travel plans.
Posted by: Steve | Aug 7, 2006 12:02:44 PM
Taxation, this change will credit the Treasury Department with $49 million over the next 10 years. The cost of the bureauocratic program will exceed the projected credit of 49 million. When one sees a stuffed head mounted on a wall many think, "Too bad the deer couldn't shoot back" and we instantly dislike the person who shot it. It's kinda creepy to have stuffed animals for decor. I mean, where's the demand.
Posted by: FlimFlamMan | Aug 7, 2006 12:59:08 PM
This whole thing was clearly posturing for votes needed by another republican. Now I wouldn't suggest that rich guys huntin'down trophies at tax payer exspense is good. Especially not for the animal. Just ask Saddam. US tax payers will be stuck with the bill from that safari for decades. But come on; 49 million over ten years? That's peanuts to the fed which probably couldn't make 49 million last ten hours in Iraq. Mean while back at the ranch, British Petroleum alone reported earning 49 million in profits about every 75 minutes 24 x 7 literally over the last three months. These record earnings have been going on for years in the big oil sector. Have a look at the latest BP quarterly statement, it's over 7.5 BILLION. Where's all the tax revenue on that?
Posted by: Ossy | Aug 8, 2006 11:17:38 AM
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