they are starting to avoid California teams for the same reason. https://www.delcotimes.com/news/sta...cle_7be14cea-40ac-5832-a07a-b6fa77f2a0bf.html or https://sports.yahoo.com/report-gia...ornia-taxes-made-tough-compete-230124281.html or https://www.theblaze.com/news/california-tax-rate-bryce-harper
state income tax rates are important but also toss in property taxes, city taxes, etc and it will certainly make players think twice about heading to NYC, CA and other places that have a population exodus going on.... Harper just pocketed an extra $30M in state taxes by signing for Philly and not San Fran
By moving away from Washington, D.C., which has a top income tax rate of 8.95 percent, Harper stands to save almost $10 million over the next 13 years thanks to Pennsylvania’s lower income tax rate of 3.07 percent.
If Harper indeed made his decision based on the highest offer, the Giants were on the cusp of besting the Phillies in terms of up-front value. The average value of their reported 12-year offer ($25.83 million) is slightly more than what Harper got in Philadelphia ($25.38 million). state taxes in California would have required the Giants to offer significantly more to compete in terms of money that actually ends up in Harper’s bank account.
Had Harper signed for the Giants for $310 million over 12 years, he would've owed California about $3.4 million in taxes per year — or over $41 million in taxes over the course of his contract.
By contrast, Pennsylvania has a flat tax rate of just 3.07 percent. If Harper ends up living in the Keystone State, he'll owe about $780,000 in taxes per year — or just over $10 million in taxes over the course of his Phillies' contract.
that's just TODAY's rate ... you know it won't be going down. 15 years ago it was 9.3 and now it is 13.3 ... NY/NJ/CT (places where NY-based would live) are way up (NJ doubled) and now Chicago is coming. Illinois jumped to 5% but are looking to change this flat tax to a, ahemm, "fair tax", which would mean these well-paid athletes will get screwed. And they will push through before july 1 and they want it to at least equal, or surpass, the neighboring states which are at 8% and 9% for decent earners. So expect it to be 10% or right up to it (9.98%?)Yeah, but with the Giants in the division with the Dodgers and Padres, he's playing over 100 games per year in CA.
I can't imagine forking over 13.3% for a state income tax.
And they still have the highest % of people in poverty.
Crazy.
I think they actually pay taxes based on where they play. So if they play for Minnesota and they have a road game in Milwaukee they pay taxes in Wisconsin for that portion of their salary.
Something tells me I read this along time ago.
Therefore the difference becomes much less. I also remember reading that Toronto had to pay more mostly because of the exchange rate than the tax rate.
I think they actually pay taxes based on where they play. So if they play for Minnesota and they have a road game in Milwaukee they pay taxes in Wisconsin for that portion of their salary.
Something tells me I read this along time ago.
Therefore the difference becomes much less. I also remember reading that Toronto had to pay more mostly because of the exchange rate than the tax rate.
a) no athlete is heading up north because of the tremendous canadian healthcare system (note sarcasm)In the NHL, all salaries are in USD. I imagine it to be the same for NBA and MLB.
We pay more tax, because our government services (Health care) are less expensive, and often free.
Our highways are paved as well lol. I drove from Detroit to Toledo once. Could not believe what a shit hole that highway was.