homeytennis
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How will he afford food?
2023 NBA Free Agency Thread
- Thread starter Elizah Huge
- Start date
LogGrad98
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Work at a local Wendy's?
homeytennis
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In free agency signings today Matty Ice signed with a German team, former summer league player JP Tokoto signed with a team in Israel and Jabari Parker signed with Barcelona.
fishonjazz
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I call BS on your numbers.
Coach Ellis
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Still think it’s a little crazy that Kelly Oubre is still a free agent. For a one season bench mercenary, I think he’d be great. Maybe flip him for an asset somewhere else.
LogGrad98
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Probably closer to $40 mill after tax. Although it can get complicated as you better believe they have an army working on reducing the tax they pay.
Fosto
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I think they're off by a few million. 39% federal tax + 12% state tax. So it should be around 29m. Although I'm sure these athletes use all kinds of loop holes to lower their tax contribution.
fishonjazz
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Ya 40 is closer to what I was thinking
Fosto
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Nah, a lot lower than that. Almost all of that income will be taxed at the marginal rate of 37% (anything above 500k), then you have a couple of percent FICA tax, and 12% California state tax.
Not counting any deductible magic I'm sure his army of accountants will come up with.
Handlogten's Heros
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It will end up being about 50/50. State tax can be spread amongst the states based on games played. Most of you FICA phases out early, so its just Medicare. He will "take home" around 30M depending on his tax planning and agency fees.
Fosto
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Yeah, my own estimate was 29m. That sounds about right.
Wait until they hear about our guys having to pay tithing.
Handlogten's Heros
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The escrow comes back to him… not a tax.
SoberasHotRod
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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.”