Sports fans are paying close attention to how much income tax athletes pay and how that affects their decisions about where to play.
After NBA superstar Stephen Curry signed a two-year contract extension, $110 millionSports investment analysts analyzed how much Curry would lose because of California's tax rate.
“This is why taxes are the worst,” says analyst Andrew Petcash. Written.
PetCash found that in 2023 alone, Curry will lose $6.3 million due to California's 12.3% income tax rate. However, if his income exceeds $1 million, he's also subject to a 1% state mental health services tax and a 1.1% state payroll tax. Tax Foundation.
“It's another issue that has to be addressed in the negotiations.”
Another graphicCurry paid $4.1 million in taxes to the state of California in 2017-18.
This means he has already paid $40.2 million in taxes with the Golden State Warriors over his career.
California's marginal tax rates mirror the high rates in other Democratic-leaning states, forcing players to play for teams in less-taxed markets.
Eight-time Super Bowl champion head coach Bill Belichick recently discussed these factors and how they influence an athlete's decision. Specifically, he was discussing Dallas Cowboys wide receiver CeeDee Lamb.
Lamb recently signed a four-year, $136 million contract extension with the Dallas Cowboys, who play in Texas, a state with no state income tax.
Belichick noted that in addition to Massachusetts' 9% state income tax rate, players who play for the New England Patriots typically also pay a “wealth tax.”
Starting in 2023, the state 4% additional tax If taxable income exceeds $1 million, the effective state tax rate for most football players is 13%.
“That's Taxicab,” Belichick said. “That's another thing that we have to deal with in the negotiations there. It's not like Tennessee or Florida or Nevada. Some of those teams don't have a state income tax. It makes it a lot tougher for an agent.”
In other high-tax Democratic states, it's mind-boggling to calculate how much money the government takes from top athletes.
For example, in Washington, D.C., where MLB superstar Bryce Harper played eight years for the Washington Nationals, the marginal tax rate is 10.75%, and Harper paid more than $2.3 million in state taxes on his cumulative $21.725 million. salary.
When he signed with the battleground state Philadelphia Phillies in 2019, his state tax rate dropped to 3.07%.
Harper made a whopping $144.3 million in just six seasons with the Phillies, but paid just $4.4 million in state taxes — a figure that would have been $15.5 million if he'd stayed in Washington.
With a New York state income tax rate of 10.9 percent, Yankees slugger Aaron Judge will pay $39.2 million in state taxes alone by the end of his contract, for a total of $360 million.
These calculations should serve as evidence as to why Los Angeles Dodgers superstar Shohei Ohtani opted to accept just $2 million per season on his 10-year, $700 million contract. contractThe Japanese baseball player will become a free agent in 2034, at age 39, and will likely remain on the receiving end of a $68 million annual salary through 2043, far from the claws of California's tax system.
Like Blaze News? Bypass the censorship and sign up for our newsletter to receive stories like this directly to your inbox. Register here!
