Wait until they hear about our guys having to pay tithing.
2023 NBA Free Agency Thread
- Thread starter Elizah Huge
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Wait until they hear about our guys having to pay tithing.
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The escrow comes back to him… not a tax.
I don't remember ever hearing of the Jock Tax before. Now that I've read about it a little bit it seems dumb.
For a contract like that, being in a state with zero income tax keeps MILLIONS. It's wild.
Wouldnt "jock tax" not be a thing for most LA players? I'd assume if you play in CA you probably live in CA year round.
A quick read tells me this is tax that some states (including CA) have where they tax opposing players. So AD will pay some tax here and some there, probably none of the jock tax actually to CA.
The whole idea of being taxed on visiting states doesn’t make any sense to me. Has that been confirmed? They’re paid a salary, not lump sums for each game. How would they even calculate how much they would owe for a game? You can’t even do 1/82 because their contract is 365/year that requires other duties that isn’t easily compartmentalism’s into 82 sections. Pilots and flight attendants don’t pay taxes in every state. People don’t pay another state’s tax because they have a business trip, or even frequent business trips, to a location.
It seems much easier, even if they’re putting in loopholes to “capture” this high income, to just have every state keep the taxes of their own players for the year rather than not taxing them on the games they play away and then taxing visiting players when they come.
But there is nonsense that goes on in some states. The state of NY pled for healthcare workers to come from other states to work over COVID and then tried to collect taxes on income they earned elsewhere that year. “Hey, come help us. By the way, we’re taking more of your money that isn’t ours because you decided to help us.”
It seems much easier, even if they’re putting in loopholes to “capture” this high income, to just have every state keep the taxes of their own players for the year rather than not taxing them on the games they play away and then taxing visiting players when they come.
But there is nonsense that goes on in some states. The state of NY pled for healthcare workers to come from other states to work over COVID and then tried to collect taxes on income they earned elsewhere that year. “Hey, come help us. By the way, we’re taking more of your money that isn’t ours because you decided to help us.”
I agree it sounds weird. I do believe that you actually can do 1/82, though. That's how they calculate fines when players are suspended, at least.
Not sure how the states have specified this, but I guess if it's a minimum sum you earn working in the state, it's probably not entirely unreasonable.
The NBA can choose 1/82 for fines because they do that all internally and could divvy it up any way they wanted, really. But for taxation purposes it would be fairly arbitrary because the state doesn’t really have any way of determining what work happens and when. Saying 1/82 doesn’t really make much sense (from a state perspective) because it implies that the only work being done is the actual game.
I guess, good point. Apparently they do, though...