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Reading an article discussing the tax liability Joe Flacco faces with his new 6 year/$120 mill contract, the "jock tax" gets discussed....
"And that’s excluding his “jock tax” liability for away games – play the Patriots at Gillette Stadium, pay Massachusetts income tax on earnings for that game."
http://www.atr.org/tax-bite-leaves-flacco-second-best-a7506
I will admit I never knew players were taxed based on where each and every game is played. Knowing this now, don't teams in state income tax free states have an enormous advantage in luring FAs based on after tax dollars paid.
Using a $120 mill annual salary payout, Dolphin players pocket $10 mill after tax dollars more than Raven players. Why these teams can't use this advantage to build stronger teams is puzzling. As state tax rates escalate, it's possible players may become more conscious of the take home possibilities.
Anyway, interesting article for those like me that like to understand the business side of the game.
"And that’s excluding his “jock tax” liability for away games – play the Patriots at Gillette Stadium, pay Massachusetts income tax on earnings for that game."
http://www.atr.org/tax-bite-leaves-flacco-second-best-a7506
I will admit I never knew players were taxed based on where each and every game is played. Knowing this now, don't teams in state income tax free states have an enormous advantage in luring FAs based on after tax dollars paid.
Using a $120 mill annual salary payout, Dolphin players pocket $10 mill after tax dollars more than Raven players. Why these teams can't use this advantage to build stronger teams is puzzling. As state tax rates escalate, it's possible players may become more conscious of the take home possibilities.
Anyway, interesting article for those like me that like to understand the business side of the game.