0% taxes in Texas nice change for Wesley and DeAndre in Breitbart Sports lead

[bilsu]

so if the politicians are planning on paying for part of the new arena on the backs of other teams' players tax revenue (and Bucks players natch) if they are on a team from a state with income taxes, does their state pay the state of WI the credit the player claims in his own state for $ earned in WI?

The credit never reduces the tax below zero. Basically you pay the highest tax rate between your home state and the state you earned the money in. A Buck's player who is a resident of Wisconsin pays Wisconsin tax on his earnings attributed to a game played in Texas and receives no credit for Texas tax paid, since there is no Texas tax. So in reality he is fully taxed in Wisconsin on his Texas earnings. A Buck's player whose permanent residence is in a state other than WI only pays WI tax on income attributed to Buck's games played in Wisconsin.

[BallBoy]

Good post, but this is terribly hard to read.  Suggest breaking it up a bit.

I'm not completely sure how it works living in states with no state income tax, but I would assume taxes paid for games in CA, IL, etc. would be credited against their state tax return in TX.  In essence, they still would have 0 state income taxes.

I have to file for multiple states every year and have recently spent a lot of time in FL.  I still get taxed for my earnings in FL on my NY return.  I just cant claim any credit for taxes paid for those earnings as no income tax was deducted.  On the flip side, when I travel to VA or IL, I am taxed there, and then use those tax payments as credits towards my NY return.  As I am still technically taxed my full amount there.

Again, I'm not completely sure how the credits for state taxes paid work in states with no income tax, but I would assume its similar and has the net effect of no state income tax.

I worked for one of the Big 4 and they ask you where you did the work on the time card.  They then withheld the state/local taxes but then reimbursed you if you paid more taxes. 

I don't know if the NBA has this setup since each team pays their players but, technically, the team should be withholding based on where the money is earned (aka played) and then having the player fill out a W2 for that state. 

I had to fill out 7 W2s some of which had earnings of less $1.5k. 

[vogue65]

Must be interesting obsessing on taxes all the time and making every life decision based on tax consequences.  I live where people move to Costa Rica, because of taxes....

I don't get it, maybe it is an engineer thing....

[Dr. Blackheart]

All that money and making your team choices on a few percentage points of tax.    First world problem. 

But pay an agent and tax accountant a higher percent not to pay the taxes.  1% problem.

[Frenns Liquor Depot]

Curious -- I have heard this concept brought up usually in the context of a player 'taking less' because of the lower taxes as opposed to the Monroe scenario above....

So is this a benefit to the player or the owner?

If it were me I would definitely include it in the list of things that I would consider -- it wouldn't be number one but it also wouldn't be inconsequential to the ultimate choice.  If I were an owner I would leverage this to the hilt to get more talent for my dollar. 

[Jay Bee]

I had to fill out 7 W2s some of which had earnings of less $1.5k. 

You sure about that?

[ChicosBailBonds]

But pay an agent and tax accountant a higher percent not to pay the taxes.  1% problem.

Thing is, it isn't a 1% problem out here.  People moving with their feet all the time.

Teams with no state income taxes have an advantage to lure talented individuals and companies, whether it is sports or any other industry.

The difference is much greater when looking at a very high tax state like Calif or New York vs what you get to keep for playing in a state like Texas.  Big dollars.  Even for the avg Joe, the difference can be 10s of thousands of dollars.  Not just the 1%.

[Silkk the Shaka]

Did California repeal its state income tax? DeAndre back to the Clipppers. Maybe this had nothing at all to do with taxes...

[mu-rara]

But pay an agent and tax accountant a higher percent not to pay the taxes.  1% problem.

Not even close.  One of my best friends in college days moved from his home state, high tax, eastern lib state to a very low tax state.  The weather was a partial motivator, but he hated the high taxes.  This guy is nowhere close to a 1%er.  He's a big time lib, a great human being and funnier than hell.

[Silkk the Shaka]

Not even close.  One of my best friends in college days moved from his home state, high tax, eastern lib state to a very low tax state.  The weather was a partial motivator, but he hated the high taxes.  This guy is nowhere close to a 1%er.  He's a big time lib, a great human being and funnier than hell.

Bill Brasky?

[mu-rara]

Bill Brasky?

No, but if I used his nickname some of you might know him.

[Lennys Tap]

No, but if I used his nickname some of you might know him.

Bill Keeler (aka "Lefty")?

[Sixteen2One]

Did California repeal its state income tax? DeAndre back to the Clipppers. Maybe this had nothing at all to do with taxes...

I love how that whole article is basically crap now.

[ChicosBailBonds]

I love how that whole article is basically crap now.

Did Wesley revoke his deal in Dallas?   Then the whole article is not crap now.

[w0bbie]

Did Wesley revoke his deal in Dallas?   Then the whole article is not crap now.

I wouldn't say the article is crap - it's a valid consideration to weigh against many other factors.  However, after Jordan backed out, the Mavs upped Wesley's contract to $70 million over for years which made it more than Sacramento's reported $64 million/4 yr offer.  He ended up making more in Texas even before considering the tax difference.  Aldridge is the only one of the mentioned three who ended up taking less guaranteed salary to head to Texas (for a clearly better basketball situation in his home state).