Dude86 wrote:How come the state tax on free agent contracts wasn't an issue until this year? Are there new laws or something, or is it just like a hot topic this year?
Nope, no new laws or anything, just people realizing how much money is really involved.
Say for example a 12 million per year deal for 4 years (like Delgado's). 6 million per year is made in his home state. Say an average tax of 7.5% in his home state equals $450,000 per year in state taxes (that's $1.8 million over the 4 years) that he could avoid by playing for Texas or Florida. Now $450,000 per year really isn't that much compared to $12 million, but rich people don't stay rich by not looking at ways to maximize their incomes and/or reduce payments out. Just makes for smart business to avoid paying the $450,000 per year (or $1.8 million for 4 years) in taxes if someone like Delgado gets the same offer from say Texas and Arizona.
Yes doctor, I am sick.
Sick of those who are spineless.
Sick of those who feel self-entitled.
Sick of those who are hypocrites.
Yes doctor, an army is forming.
Yes doctor, there will be a war.
Yes doctor, there will be blood.....