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Money Question


gftChris

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Do different states have different tax levels? Ie, a guy earning $8m a year in Cleveland, earns, for example, $5m after tax, but it would be $6m after tax in florida? if so how does the salary cap take that in to account?

 

Posting this here because I guess people here will have more of an idea about tax rates across the country...

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Sure. Every state has its own tax code on top of the federal. Most all cities and municipalities do too. I'm not exactly sure how that works according to the salary cap. Probably every team has to figure thatout individually.

WSS

This is what I was wondering. If you have different tax rates, then either:

 

1 - the salary cap is pre-tax. This means that players playing for teams in states with higher tax codes could earn more money on the same contract elsewhere. Surely this is a handicap for teams?

 

2 - the salary cap is post-tax. It's unlikely, but fairer in terms of competition. that being said, it does mean that teams paying more overall to pay the same net salary have to generate more funds. Not sure that this is fair either.

 

I'm intrigued.

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Counties have different sales tax rates. Cuyahoga county (where Cleveland is) has what is called a 'sin' tax (atheists should be up in arms). It taxes cigs and alcohol. That is how they fund the stadiums, etc. Some States (like Florida) have no income tax, which is why many seniors retire their.

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Counties have different sales tax rates. Cuyahoga county (where Cleveland is) has what is called a 'sin' tax (atheists should be up in arms). It taxes cigs and alcohol. That is how they fund the stadiums, etc. Some States (like Florida) have no income tax, which is why many seniors retire their.

I've heard of this sin tax, when reading about stadium upgrades etc. Is it not a common thing, then to tax those legal drugs? Happens quite a lot over here, and much more around europe. In London, a pint of beer (proper, english pint, not the smaller american pint ;) ) will set you back about £4, whereas in europe it could be nearer €8. In Singapore, a half pint - actually it's 250ml for you scientists - is about S$14 in a bar. That works out to something like $20 for a pint. It's crazy.

 

But the question still stands about salary cap. Any ideas where I can find out?

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I will call it a "fun police" tax.

 

Yeah states and counties have different levels of taxation. Pro athletes have said they like Florida because there are no state income taxes. It makes a huge difference when you are making millions. I don't know what property taxes are like down there on mega properties. My best friend lives in Jacksonville and says his property taxes are low.

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So Great Britain has one flat rate for every city?

Yes and no. Everyone is taxed by the same structure, but it's a staggered structure. I can't remember exactly, but off the top of my head it's something like:

 

< £7k - 0%

£7k - £36k - 20%

£36k - £150k - 40%

£150k+ - 45%

 

All those with no tax credit/allowance - ie students, married couples where one party is a housewife/husband etc - pay at the same rates, within that band. On top of this we have a 12% 'national insurance' - I guess it's kind of like your social security, it goes towards things like unemployment benefits, maternity pay, things like that. There's also no property tax outside of buying and selling.

 

This whole things seems to make the salary cap really unfair - in real terms some teams are going to be able to afford a lot more than others.

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not to mention the fact that a player can make substantially more through endorsement deals in major markets that they can in Cleveland Milwaukee Buffalo etc

WSS

True, plus tv appearances etc. but that's not in the league's control. The salary cap is.

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