Posted on 07/08/2010 10:02:15 AM PDT by Arcy
While sports reporters have sought agents and teammates for the inside scoop on where NBA superstar free agent LeBron James will sign, there’s another person who may know The King’s next move: his accountant.
In a July 1 blog post, the New York Post warned that “dysfunctional lawmakers in Albany” could cost the state a chance to bring the coveted athlete to New York.
“If LeBron James goes to the Miami Heat instead of the [New York] Knicks, blame our dysfunctional lawmakers in Albany, who have saddled top-earning New Yorkers with the highest state and city income taxes in the nation, soon to be 12.85 percent on top of the IRS bite,” the Post said.
The tax savings for James in Miami over New York City would be staggering, according to the Post’s analysis.
“On a five-year contract worth $96 million -- what he'd get from the Knicks or the Heat -- LeBron would pay $12.34 million in New York taxes.” Florida has no state income tax.
(Excerpt) Read more at businessandmedia.org ...
I think Cavs fans are being a bit too hard on James. He has given them 7 great years, and honestly he doesn’t owe them anything. I get the feeling the attitude of entitlement among Cavs fans and the Cleveland media has helped to drive him away.
Why does any player owe anything to any city? If some other team had won the lottery that year, he would have gone to that team and been just as big (perhaps bigger) a atar and made just as much money.
He should do whatever makes him happy. If showing exceptional loyalty and making Ohio fans happy, makes him happy, more power to him. But, if he’d rather make tons of money in NYC or play with Wade and Bosh in South Beach, nobody has any right to call him “selfish” for making those choices either.
I suppose taxes could affect his decision. But, I would think the endorsement value of a Knicks jersey over a Heat jersey would more than make up for the tax differential.
Taxes didn’t stop Alex Rodriguez from leaving Texas for New York.
SnakeDoc
This is why I make the statement that the rich do not pay taxes. They have their income adjusted to offset the tax impact.
If,by chance,both parts of my assumption are correct the difference for him,tax-wise,might not be that great...assuming,furthermore,that he'd choose to live in Westchester,Nassau or New Jersey instead of NYC.
The team cannot pay his taxes. That would become income, and he would be taxed on them again.
I remember years ago when we hired some out of state contractors in a call center in Buffalo. The NY State Tax office contacted our company and told them that if we were doing business in NY, then the entire company income would be subject to NY state tax.
This was a $100,000 contract for a mutlinational corporation that made billions.
I learned to hate NY even more than I had before.
Not for nuthin’, but he is a loser because of MY Boston Celtics.
I bow to your superior talent this year. But we will see you again next June.
????????
???????what are you talking about(was that suppose to be a sarc?)????
first of all who’s side are you on, the marxists?
second...the rich pay taxes(more than anyone)....you can look at your after tax salary the same way...you can say ‘I make X....I don't count my taxable income which is X + Y’...
this does not alter the fact that you pay taxes.
Texas paid his salary for the first few years...it was a win win for the A-rod and the Yankees....and a stupid move by Texas from square 1..
On February 15, 2004, the Rangers traded Rodriguez to the New York Yankees for second baseman Alfonso Soriano and a player to be named later (Joaquín Árias was sent to the Rangers on March 24). The Rangers also agreed to pay $67 million of the $179 million left on Rodriguez's contract.
Governor Patterson’s tax attack on Limbaugh backfired and now the average New Yorker is having to come up with the money that Limbaugh used to pay on their behalf. Liberal solutions always hurt the American family.
I hope he goes the way of Sam Bowie and Bill Walton.
The Rangers paying A-Rod’s salary wouldn’t have affected the taxes ... he’d still have to pay NY taxes on the salary. If a company in Texas pays you to work in NY, you still owe NY the taxes for earning money in their state.
SnakeDoc
In a word, nothing.
Granted, the Celtics did beat the Cavs, but they aren’t the reason Lebron is a loser. Just the latest beneficiaries of his inability to lead.
Dream on about next year.
My only worry for the Lakers is the Oklahoma Thunder team. They were the only ones who gave them any real trouble.
I was honestly afraid that they were going out in the first round.
“On a five-year contract worth $96 million — what he’d get from the Knicks or the Heat — LeBron would pay $12.34 million in New York taxes.” Florida has no state income tax.
Texas has no taxes either...He could land in Dallas, SA or Houston for that matter.
I’m not an NBA fan but there is a ton of misinformation on this thread.
The NBA has a salary cap agreement with the players union.
LeBron can earn more more with the Cavs than he can any other place - about 30 million over the life of the contract.
In any event I hope this tax effect gets HUGE publicity.
I’m sure all these Baraq fans will enjoy paying more after the Bush tax cuts expire also.
“LeBron James is an amazing talent. But LeBron James only cares about LeBron James, not the Ohio fans that follow him. Spend their hard earned money to watch him”
Such is the culture of the NBA. All emphasis is on the individual and not the team.
Hip/hop culture, big endorsments/contracts are all that matter to the elite NBA players today.
I know. We are getting old. I hope that we can squeeze one more year out of our guys.
If Ray Allen leaves, we are screwed.
I bet Reid and Pelosi will respond by imposing an Alternative Federal Tax on athletes and performers who work in states without an income tax
Now if we had a wealth tax such as France, then we would hear Warren scream!
and no I am not for a wealth tax or any additional taxes. I like the concept of a Flat Tax. I also think there should be a Truth in Tax Law which would require all transactions to separately list each tax for the consumer to see the true impact of taxes.
It’s hard to hate a team with such talented players, but they are the Celtics and I am a Laker fan, therefore I must. LOL:)
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