Do you think it's BS that taxes play a big part in FA singings

[KG Living Legend]

 I really think it's unfair. Ainge recently said that free agents aren't coming here for the weather or for tax advantages.

 Weather is one thing but Money that's another we need to figure out something to make it a even playing field so guys don't get short changed millions of dollars because of state taxes.

 On a max contract Boston would have to pay 10 maybe 15 million more than Miami to make it even and that's just wrong. Any possible solutions?

[D Dub]

I really think it's unfair. Ainge recently said that free agents aren't coming here for the weather or for tax advantages.

 Weather is one thing but Money that's another we need to figure out something to make it a even playing field so guys don't get short changed millions of dollars because of state taxes.

 On a max contract Boston would have to pay 10 maybe 15 million more than Miami to make it even and that's just wrong. Any possible solutions?

Players association could implement a flat tax for players, pool the monies, then pay out everyone's individual filings/ donate leftovers. 

Isn't it even more complicated than the just home state-- like they have to file a return for every state they play a game in?

[tazzmaniac]

I really think it's unfair. Ainge recently said that free agents aren't coming here for the weather or for tax advantages.

 Weather is one thing but Money that's another we need to figure out something to make it a even playing field so guys don't get short changed millions of dollars because of state taxes.

 On a max contract Boston would have to pay 10 maybe 15 million more than Miami to make it even and that's just wrong. Any possible solutions?

Players association could implement a flat tax for players, pool the monies, then pay out everyone's individual filings/ donate leftovers. 

Isn't it even more complicated than the just home state-- like they have to file a return for every state they play a game in?

Tax law doesn't allow individuals (other than married couples) to pool money and pay their taxes.  I believe you are correct about the players paying tax for every state they play in which somewhat alleviates the issue.  You also deduct state tax paid from your federal taxes so that helps too.   

[KG Living Legend]

 Either way something needs to be done, money is the most important factor the majority of the time.

[Moranis]

Yeah taxes suck, you don't like it have your state change its tax laws. 

[pearljammer10]

Meh, you can relate this to any topic in the world. I don't think they are going to change tax laws just because some NBA players will profit more than others.

Money makes America go round. Its unfortunately the way it is and the way its always going to be.

[Neurotic Guy]

I doubt it's really a big deal.   Who knows what the taxable income is on a typical player who earns $20 Million.   My guess is that it's considerably less than 20M for most.  Let's say a quality FA pays 5% state tax on 10M of taxable income, that's $500,000.  Is that really a game changer?   Probably is for a few, but then consider cost of living factors and quality of living factors and I think taxes is probably a small variable for some players.  Miami might check many of the boxes and give that franchise an advantage but I think Boston stacks up pretty well as a non-warm destination.

[littleteapot]

A lot of things are unfair about taxes and sports is low on the list.

[saltlover]

I mean, I can't say it plays no part, but there are ways to lessen the tax disparity.  For instance, if a player gets a signing bonus (which can be up to 15% of the contract) he can have that taxed in whatever state he claims residency. So if he claims Florida, no taxes right there on 15%.  Most states tax visiting players, so essentially his home team's state only gets to tax half of his salary, and the other 50% he would have paid no matter which team.

It's a little more nuanced of course, but if a player is debating signing for $10 million with the Celtics (income tax) or Heat (no tax), he would:

1) Get a signing bonus of $1.5 million made untaxable by living in a tax free state.
2) Pay approximately the same amount of taxes with either team on $4.25 million, due to road games.
3) Pay a 5.2% income tax on his remaining 4.25 million, for a tax bill of $221,000.  Now, that's not nothing (certainly more than I make in a year), but its 2.2% of his salary, not 5.2%.  At the end of the day, I have to imagine its only a factor in a small minority of decisions.  And unless you have a no-trade clause, it should be, since you could see your tax rate change due to a trade.

[colincb]

It's overblown. State income taxes for the Cs are 16th highest of the 29 teams in the US. (Raptors players are taxed under CA laws which differ) The only low tax states that have BB are Texas and Florida. Players however have to pay "Jock" taxes on wages earned in other states in those states which means that even players in Texas and Florida have to pay jock taxes in high tax CA for example. The taxes are calculated on a “duty days” basis, that is, on the number of days they are in a state as part of their job, be it playing, practicing or attending meetings. Then some states tax players arbitrary amounts beyond the standard tax rates. In other states there is no jock tax if there is no jock tax in the players state (IL for example.) Overall, tax filing is a huge PITA for pro athletes based on the "jock" taxes most states have. Some light reading for those who seek forbidden knowledge:

https://en.wikipedia.org/wiki/Jock_tax
http://www.pressherald.com/2015/06/28/pro-athletes-pay-a-big-price-for-their-success-in-taxes/
http://www.forbes.com/sites/anthonynitti/2015/07/05/is-californias-state-tax-rate-impacting-nba-free-agency/
http://www.raptorsforum.com/f/f5/question-about-taxing-nba-players-toronto-27203.html

[kozlodoev]

Do the math (hint: it doesn't really matter). I think weather matters more than taxes and both of them really aren't that important.

[KG Living Legend]

 Here is an example of why it matters big-time.

 Suh signed with the Dolphins with almost 60 million guaranteed. The Raiders were also trying to sign him. They would had to offer 69 million guaranteed just to make it even with the Tax factor. If that's not unfair what is.

 He signed with Miami.

[saltlover]

 Here is an example of why it matters big-time.

 Suh signed with the Dolphins with almost 60 million guaranteed. The Raiders were also trying to sign him. They would had to offer 69 million guaranteed just to make it even with the Tax factor. If that's not unfair what is.

 He signed with Miami.

Football and basketball are different.  You work 8 days out of your home team state, compared with over 100 in your state, so the state income taxes matter more.  On top of that, the top rate in California is about 2.5 times what it is in Massachusetts.  And finally, as a basketball example, the Lakers seem to have little trouble signing free agents, despite this tax rate.  Same is true of New York.

[danglertx]

 Here is an example of why it matters big-time.

 Suh signed with the Dolphins with almost 60 million guaranteed. The Raiders were also trying to sign him. They would had to offer 69 million guaranteed just to make it even with the Tax factor. If that's not unfair what is.

 He signed with Miami.

Taxes don't matter like people think because of how professional athletes are taxed.  Plus in a State like Texas, yeah you don't have a State income tax, but you pay more in property taxes than other places and athletes are just the kind of people buying expensive property and paying those high taxes. 

[Rosco917]

Honestly, each player is different. If I were a player, and I had no feeling either way about the intrigue of playing basketball with the Boston Celtics. I would stay away from cold weather, personal thing, and taxes would be a second consideration. I'm sure to some, it matters.