FanPost

Free Agents and Income Tax

Why isn't income tax a bigger topic of conversation when speaking about free agents. Teams in Florida (Miami, Orlando) and Texas (San Antonio, Dallas) have a huge advantage in this regard. Most teams require you to spend so many days in the home city that state income tax is almost certain to be triggered.

Think about it like this. Player makes $10 million dollars a year. Assume no offset, charitable giving or fancy accounting. If that player lives in the city of Philadelphia he is paying 3.924 percent in the city wage tax ($392,400) and 3.07 percent in state tax ($307,000). Thus it costs that player almost $700,000 for the luxury to play in the Commonwealth of PA. Meanwhile, down in Florida, he does not have to take that hit. I'm led to understand that the tax hit in Canada for Raptors players is even harsher.

Free agents and their advisors must be accounting for this, right?

Does the CBA address this? When you work for the federal government, you get a COL, cost of living, increase depending on municipality. Teams in high tax jurisdictions probably deserve some type of offset.

A user-created LB joint. The Liberty Ballers staff does not contribute to FanPosts.

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