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View Full Version : Unfair playing field money/contracts-taxes


eddie mac
03-14-2012, 10:47 AM
Obviously I dont reside in the US but I did not know that different states have different state income tax levels.

How on earth is that fair in sports and in particular the NFL.

Just listening to NFL Network and the guys stated that this is certainly a factor wherever a free agent would sign, i.e Tennessee has no state income tax.

How does the NFL condone this and furthermore why does it not counteract it by giving teams with higher state Income Tax levels more money to pay for their players, i.e adjusted cap and higher percentage of the NFL cut in terms of cash.

Beantown Bronco
03-14-2012, 10:50 AM
Obviously I dont reside in the US but I did not know that different states have different state income tax levels.

How on earth is that fair in sports and in particular the NFL.

Just listening to NFL Network and the guys stated that this is certainly a factor wherever a free agent would sign, i.e Tennessee has no state income tax.

How does the NFL condone this and furthermore why does it not counteract it by giving teams with higher state Income Tax levels more money to pay for their players, i.e adjusted cap and higher percentage of the NFL cut in terms of cash.

Because, in all reality, the players don't think about this. They don't care. They still want to go to NY, Boston, etc.

If it was really in FA thought processes, every FA would go to Tennessee. They don't.

houghtam
03-14-2012, 10:52 AM
Because, in all reality, the players don't think about this. They don't care. They still want to go to NY, Boston, etc.

If it was really in FA thought processes, every FA would go to Tennessee. They don't.

Same thing with Florida and a few other states. It's why many players "live" in Florida, but don't actually "live" in Florida.

chickennob2
03-14-2012, 10:53 AM
Obviously I dont reside in the US but I did not know that different states have different state income tax levels.

How on earth is that fair in sports and in particular the NFL.

Just listening to NFL Network and the guys stated that this is certainly a factor wherever a free agent would sign, i.e Tennessee has no state income tax.

How does the NFL condone this and furthermore why does it not counteract it by giving teams with higher state Income Tax levels more money to pay for their players, i.e adjusted cap and higher percentage of the NFL cut in terms of cash.

Would you like the NFL to provide space heaters for players in colder cities? Should they revenue share all income? It's only fair, right. Peyton went to college in Tennessee, which gives the Titans an advantage over other squads. Should the NFL mandate that you can't have an NFL franchise in the same state as a college that plays D-1 football? His wife is from Tennessee, another unfair advantage for the Titans. Should the NFL provide him a wife from every city that's home to an NFL team? It's only fair.

Look, every franchise has pros and cons for any given player. That's life. And no, I don't see the NFL pushing for a constitutional amendment to remove a state's ability to tax its citizens as it sees fit.

canadianbroncosfan
03-14-2012, 10:54 AM
Same thing with Florida and a few other states. It's why many players "live" in Florida, but don't actually "live" in Florida.

Is that why Manning has homes in Dade County and in Tennessee? ;)

Drunk Monkey
03-14-2012, 10:54 AM
Because, in all reality, the players don't think about this. They don't care. They still want to go to NY, Boston, etc.

If it was really in FA thought processes, every FA would go to Tennessee. They don't.

I don't entirely believe that. 8% is a significant number. Texas, Florida and Tennessee definitely have a competitive advantage when it comes to salary cap. That pays for you agent right there. If you are a big name that has endorsement deals lined up that is different but for a mid tear player it is a significant factor.

chickennob2
03-14-2012, 10:55 AM
Also, I have no idea how the NFL works, but in the NBA, every game check is taxed according to the laws in the city/state in which that game was played. So for a Memphis Grizzles player, for example, 41 of their game checks have no state income tax applied. The other 41 are taxed according to the city in which they were played.

I assume the NFL is similar, but perhaps not.

Rohirrim
03-14-2012, 10:56 AM
Does the tax apply to where you work, or where you claim residence?

jhns
03-14-2012, 10:59 AM
They coupdn't even figure that stuff out until the schedule is made. For one, taxes change. Two, the players have to pay taxes in every state they play in. When a Bronco plays an away game in KC, they pay taxes to KC for that games salary.

Either that, or I am imagining that I heard this before.

ScottXray
03-14-2012, 11:00 AM
Does the tax apply to where you work, or where you claim residence?

Work.

If Portland got an Nfl team there would be a 11% state income tax on all salaries..
On the other hand they could call themselves Portland and put the stadium, facilties in Vancouver WA ( 1 mile across the Columbia river) , and pay ZERO income tax.

I'd vote for Vancouver.

:strong:

Rohirrim
03-14-2012, 11:01 AM
Work.

If Portland got an Nfl team there would be a 11% state income tax on all salaries..
On the other hand they could call themselves Portland and put the stadium, facilties in Vancouver WA ( 1 mile across the Columbia river) , and pay ZERO income tax.

I'd vote for Vancouver.

:strong:

That's why my sister and her family moved from Portland to Vancouver. ;D

ColoradoDarin
03-14-2012, 11:02 AM
And this is why the Jets and Giants play in New Jersey - to avoid NYC local taxes.

Do you think that they should have a cap cost of living adjustment. I mean real estate is expensive on the coasts, but it's cheap in Dallas...

Man-Goblin
03-14-2012, 11:02 AM
It's bull****. When I got transferred from Florida to NC I got a raise but took a pay cut.

Beantown Bronco
03-14-2012, 11:03 AM
I don't entirely believe that. 8% is a significant number. Texas, Florida and Tennessee definitely have a competitive advantage when it comes to salary cap. That pays for you agent right there. If you are a big name that has endorsement deals lined up that is different but for a mid tear player it is a significant factor.

There's absolutely no correlation between free agent movement and states with low tax rates. There just isn't. Especially in the NFL. Think about where the FAs always go: Wash DC, PA, CA, NY, etc. Even with the weather working in its favor, FL comes up short.

eddie mac
03-14-2012, 11:04 AM
Would you like the NFL to provide space heaters for players in colder cities? Should they revenue share all income? It's only fair, right. Peyton went to college in Tennessee, which gives the Titans an advantage over other squads. Should the NFL mandate that you can't have an NFL franchise in the same state as a college that plays D-1 football? His wife is from Tennessee, another unfair advantage for the Titans. Should the NFL provide him a wife from every city that's home to an NFL team? It's only fair.

Look, every franchise has pros and cons for any given player. That's life. And no, I don't see the NFL pushing for a constitutional amendment to remove a state's ability to tax its citizens as it sees fit.

You obviously know more than me because you like everyone else that resides in the US, pay these taxes.

All I'm saying is aside from the Champions League in Europe I've never came across an unfair playing in field in terms of actual income when sporting teams are in direct competition for a title.

Just not used to it.

TheReverend
03-14-2012, 11:04 AM
Oh eddie...

In America only poor people who can't afford good accountants pay taxes.

Silly socialist.

eddie mac
03-14-2012, 11:06 AM
There's absolutely no correlation between free agent movement and states with low tax rates. There just isn't. Especially in the NFL. Think about where the FAs always go: Wash DC, PA, CA, NY, etc. Even with the weather working in its favor, FL comes up short.

TV Markets but those were not my words. Lombardi just stated on NFL Network that the taxes would be a factor with Mario Williams if Tennessee dont get Manning.

Beantown Bronco
03-14-2012, 11:06 AM
Looks like earnings from road games only get taxed after you play at least two games in one year in that "away state."

http://www.prosportstax.com/Images/Attachments/rn4b61f78e0a858.pdf

eddie mac
03-14-2012, 11:07 AM
Oh eddie...

In America only poor people who can't afford good accountants pay taxes.

Silly socialist.

ag ag ag, Mario Williams mustn't have a good one then considering he's worried about the cash he'll lose if Manning joins the Titans.

houghtam
03-14-2012, 11:08 AM
Oh eddie...

In America only poor people who can't afford good accountants pay taxes.

Silly socialist.

Rep. LOL

eddie mac
03-14-2012, 11:09 AM
Just out of interest say I lived and worked in Denver what % of my gross salary would taxes hit???

houghtam
03-14-2012, 11:12 AM
Just out of interest say I lived and worked in Denver what % of my gross salary would taxes hit???

Bend over and I'll show you?

LOL

Taco John
03-14-2012, 11:15 AM
Some states just have built in advantages. You've got to give it to them. Some of those advantages are weather. Some of them are culture. Some of them are taxes. Makes you kind of feel sorry for Kansas City.

Mountain Bronco
03-14-2012, 11:17 AM
Um, there are bigger things in life than sports, so I don't think that states are going to change their tax laws to support their sports teams.

chickennob2
03-14-2012, 11:27 AM
You obviously know more than me because you like everyone else that resides in the US, pay these taxes.

All I'm saying is aside from the Champions League in Europe I've never came across an unfair playing in field in terms of actual income when sporting teams are in direct competition for a title.

Just not used to it.

eddie,

Hah, in hindsight, my tone was a bit over the top. I really just liked being able to suggest that the NFL mandate polygamy.

Also, I grew up in Tennessee. Yeah, there's no state income tax, but the 9.25% sales tax is bit steep...

CORRECTION: State sales tax is 7%. Most municipalities throw a 2.25% sales tax on top. So, for example, anyone purchasing anything in Memphis or Nashville is paying 9.25%

ColoradoDarin
03-14-2012, 11:29 AM
Um, there are bigger things in life than sports, so I don't think that states are going to change their tax laws to support their sports teams.

Yeah, like getting tax money to build stadiums...

alkemical
03-14-2012, 11:30 AM
Um, there are bigger things in life than sports, so I don't think that states are going to change their tax laws to support their sports teams.

Only for stadiums :)

ColoradoDarin
03-14-2012, 11:31 AM
Only for stadiums :)

:)

eddie mac
03-14-2012, 11:32 AM
eddie,

Hah, in hindsight, my tone was a bit over the top. I really just liked being able to suggest that the NFL mandate polygamy.

Also, I grew up in Tennessee. Yeah, there's no state income tax, but the 9.25% sales tax is bit steep...

CORRECTION: State sales tax is 7%. Most municipalities throw a 2.25% sales tax on top. So, for example, anyone purchasing anything in Memphis or Nashville is paying 9.25%

So I presume that you take home every cent you earn then??? Over here in the UK we pay 33% of our money to the Government in terms of income tax and national insurance above 7k a year. Then again though we get free health treatment.

Garcia Bronco
03-14-2012, 11:36 AM
Obviously I dont reside in the US but I did not know that different states have different state income tax levels.

How on earth is that fair in sports and in particular the NFL.

Just listening to NFL Network and the guys stated that this is certainly a factor wherever a free agent would sign, i.e Tennessee has no state income tax.

How does the NFL condone this and furthermore why does it not counteract it by giving teams with higher state Income Tax levels more money to pay for their players, i.e adjusted cap and higher percentage of the NFL cut in terms of cash.

They may not have state income tax, but you'll pay in other ways like higher property taxes. For a millionaire that's a big deal. Further the real kicker is bonus money is taxed by the feds at near 50 percent.

jhns
03-14-2012, 11:37 AM
So I presume that you take home every cent you earn then??? Over here in the UK we pay 33% of our money to the Government in terms of income tax and national insurance above 7k a year. Then again though we get free health treatment.

It all depends on how much you make and how many dependents you have. My friend is poor, making around 23K a year. He has three kids and a wife that doesn't work. He doesn't pay taxes. The government pays him like 4-6K a year to live. I have no dependents, make a middle class salary, and about 28% of my money goes to state tax, federal tax, social security tax, and health/dental insurance. We also have like a 7% sales tax on all non-food stuff that we buy here in Nebraska.

Garcia Bronco
03-14-2012, 11:38 AM
Same thing with Florida and a few other states. It's why many players "live" in Florida, but don't actually "live" in Florida.

They still have to pay state income tax where ever they work.

Garcia Bronco
03-14-2012, 11:39 AM
Does the tax apply to where you work, or where you claim residence?

It applies where you worked.

rugbythug
03-14-2012, 11:49 AM
**** athletes what about me and my taxes.