MUScoop
MUScoop => Hangin' at the Al => Topic started by: bamamarquettefan on July 04, 2015, 01:22:53 PM
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http://www.breitbart.com/texas/2015/07/04/california-taxes-blamed-for-deandre-jordans-exodus-to-texas/
story earlier in the day noted the big pull for the Bucks ...
and Friday Greg Monroe shocked all by rejecting the New York Knicks (3.8% city + 8.8% state) to pay almost 5% less in Milwaukee (0% city + 7.7% state)
http://www.breitbart.com/sports/2015/07/03/top-players-rejecting-kobe-high-taxes-in-ny-and-la/
What a great week for MU grads and the Bradley Center's other team. Can't wait for the season.
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Dumb.
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The upside of playing pro sports in Texas = no state income tax
The downside of playing pro sports in Texas = living among so many Texans
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The upside of playing pro sports in Texas = no state income tax
The downside of playing pro sports in Texas = living among so many Texans
And allegedly it's the conservatives who are bigots...
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And allegedly it's the conservatives who are bigots...
Also, humorless.
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Also, humorless.
Not quite; sometimes it's hard to tell which outrageous statements are jokes and which are serious.
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The upside of playing pro sports in Texas = no state income tax
The downside of playing pro sports in Texas = living among so many Texans
The male texans are a obnoxious.
But those Texas women.... *cue up Keefe*
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The male texans are a obnoxious.
But those Texas women.... *cue up Keefe*
All my exes ....
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Dumb.
My guess is neither of us will never have to think about how dumb it is that we have avoided writing out $14 million in checks to the state of California for signing a contract there :-) but if I'm wrong - then congrats on your success!
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Dumb.
Smart
Good to see they figured it out, or hired the right advisors to do so on their own.
Very smart.
Bravo
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This is a little misleading because NBA players pay taxes based on where the games are played. So, even though Wes/DeAndre will pay no taxes for the games they play in Texas (which I understand is now half of the games, instead of just a few), they will have to pay the California rate for the games they play there.
http://midlevelexceptional.com/2014/07/23/exploring-true-value-contract/
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This is a little misleading because NBA players pay taxes based on where the games are played. So, even though Wes/DeAndre will pay no taxes for the games they play in Texas (which I understand is now half of the games, instead of just a few), they will have to pay the California rate for the games they play there.
http://midlevelexceptional.com/2014/07/23/exploring-true-value-contract/
Actually more.
Games at Houston, San Antonio as well.
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Actually more.
Games at Houston, San Antonio as well.
And Memphis. So most of his games.
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Not positive, but I think there's no state income tax in FL either, so that means no state tax on games played in Miami and Orlando as well. The percent of state-tax-free-games keeps creeping higher.
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Actually more.
Games at Houston, San Antonio as well.
No because that would be the case wherever he signed. All players, whomever they play for, pay no taxes in SA or Houston.
The benefit is only the 41 home games.
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All that money and making your team choices on a few percentage points of tax. First world problem.
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It sounds like it wasn't just money that lured Wesley. Mavericks brought along a highly respected trainer to meet with him which may have helped.
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No because that would be the case wherever he signed. All players, whomever they play for, pay no taxes in SA or Houston.
The benefit is only the 41 home games.
Technically, that's incorrect because being in the same division as SA and Houston (and Memphis) means 2 away games at each every season, when a different west team MAY only visit once.
But your point stands overall because we're down to a difference of 1-2 road games tops.
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Technically, that's incorrect because being in the same division as SA and Houston (and Memphis) means 2 away games at each every season, when a different west team MAY only visit once.
But your point stands overall because we're down to a difference of 1-2 road games tops.
Agree.
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It sounds like it wasn't just money that lured Wesley. Mavericks brought along a highly respected trainer to meet with him which may have helped.
True. If this was Mavs vs Clippers or something similar, then maybe its a tax issues potentially for $$ reasons. But this was one of the most desirable franchises in the NBA for a player (IMO) with a savvy and player friendly owner vs a dumpster fire of an organization with a crazy, meddling owner.
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Not positive, but I think there's no state income tax in FL either, so that means no state tax on games played in Miami and Orlando as well. The percent of state-tax-free-games keeps creeping higher.
That is only true, if you live in those states. Generally, you report all of your wages in the state you live. You also report the wages in the state you earn them. You then claim a credit for the taxes paid to the nonresident state on your resident state's tax return. Wisconsin, Illinois, Michigan, Indiana and Kentucky are reciprocity states. For example a person living in Wisconsin commuting to Illinois for work does not pay any Illinois tax and vice versa. A Wisconsin resident commuting to Iowa ( a non reciprocal state) for work pays Iowa tax and then claims a credit for the Iowa tax paid on their Wisconsin return. Assume you live in a 6% tax state and do some work in an 8% tax state. You make $100,000 in the 8% state and pay $8,000 in tax to that state. You owe $6,000 tax in your home state, but the $8,000 tax credit eliminates your 6% state tax and you do not get any credit for the additional $2,000 in tax paid. The result is that you pay $8,000 in tax. In the reverse situation you pay $6,000 tax in your nonresident state and you owe $8,000 in your resident state, which is reduced by $6,000 paid to the non resident state. In both cases you pay $8,000. The difference being is in case 1 you pay $8,000 +0 and in the second case you pay $6,000 + $2,000. A player choosing to live in Montana will report all of his income in Montana and will also pay tax in the states his team plays in. He would get no tax savings for the games played in Florida and Texas, because he will pay tax on the income in Montana and receive no credit for income tax paid in those states, since he would not of paid any tax to those states. I would assume Brewer players will need to allocate some of their wages to Arizona, since that is where spring training is.
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That is only true, if you live in those states. Generally, you report all of your wages in the state you live. You also report the wages in the state you earn them. You then claim a credit for the taxes paid to the nonresident state on your resident state's tax return. Wisconsin, Illinois, Michigan, Indiana and Kentucky are reciprocity states. For example a person living in Wisconsin commuting to Illinois for work does not pay any Illinois tax and vice versa. A Wisconsin resident commuting to Iowa ( a non reciprocal state) for work pays Iowa tax and then claims a credit for the Iowa tax paid on their Wisconsin return. Assume you live in a 6% tax state and do some work in an 8% tax state. You make $100,000 in the 8% state and pay $8,000 in tax to that state. You owe $6,000 tax in your home state, but the $8,000 tax credit eliminates your 6% state tax and you do not get any credit for the additional $2,000 in tax paid. The result is that you pay $8,000 in tax. In the reverse situation you pay $6,000 tax in your nonresident state and you owe $8,000 in your resident state, which is reduced by $6,000 paid to the non resident state. In both cases you pay $8,000. The difference being is in case 1 you pay $8,000 +0 and in the second case you pay $6,000 + $2,000. A player choosing to live in Montana will report all of his income in Montana and will also pay tax in the states his team plays in. He would get no tax savings for the games played in Florida and Texas, because he will pay tax on the income in Montana and receive no credit for income tax paid in those states, since he would not of paid any tax to those states. I would assume Brewer players will need to allocate some of their wages to Arizona, since that is where spring training is.
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.
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I did hear from some NASCAR driver that his accountant has to file in like 35 states for him. At that point I'm thinking paying the accountant is better than trying to figure it out solo on turbotax.
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I did hear from some NASCAR driver that his accountant has to file in like 35 states for him. At that point I'm thinking paying the accountant is better than trying to figure it out solo on turbotax.
http://blackflag.jalopnik.com/you-think-your-taxes-are-bad-nascar-drivers-have-to-fi-1698060467
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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?
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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.
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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.
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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....
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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.
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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.
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I had to fill out 7 W2s some of which had earnings of less $1.5k.
You sure about that?
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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%.
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Did California repeal its state income tax? DeAndre back to the Clipppers. Maybe this had nothing at all to do with taxes...
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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.
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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?
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Bill Brasky?
No, but if I used his nickname some of you might know him.
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No, but if I used his nickname some of you might know him.
Bill Keeler (aka "Lefty")?
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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.
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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.
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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).