Here are the salary comparisons, thanks to HOOPSWORLD’s Eric Pincus: Approximate Yearly Salary with the Lakers: Year 1: $20,513,178.00 Year 2: $22,051,666.35 Year 3: $23,590,154.70 Year 4: $25,128,643.05 Year 5: $26,667,131.40 TOTAL: $117,950,773.50 Approximate Yearly Salary with the Rockets (or any other team): $20,513,178.00 $21,436,271.01 $22,359,364.02 $23,282,457.03 TOTAL: $87,591,270.06 Yes, when looking at the numbers alone, the Lakers clearly have the advantage over any other team looking to lure him away. In the case of a Texas team like Houston, however, there are some significant factors that have to be considered. Texas has no state income tax, and for someone making better than $20 million a year, that’s a huge consideration. Just look at how the California income tax breaks down over the first four years of the contract: Year 1: $1,075,666.03 Year 2: $1,156,340.98 Year 3: 1,237,015.93 Year 4: 1,317,690.88 If we look at the first four years of the contract, Howard would make $3,692,371.44 more with the Lakers than he would with the Rockets. Adjusting that number for California’s state income tax, however, Howard would actually make $1,094, 342.38 more as a Rocket playing the majority of his games in a state with no income tax because he would save $4,786,713.82 in taxes. Read more at http://www.hoopsworld.com/nba-pm-2-why-dwight-howard-chooses-houston#uCh5vMD3pfVpoysY.99
it's cute to think the Democratic super-majorities in California won't raise taxes more in the coming years
I do like that the Rockets are trying everything they can do lure potential free agents. With that said i'm not sure how much of a deciding factor this really is.
Deck- do you favor the Rockets' efforts to add Howard? Given your thoughts about taxes generally, and some folks "not paying their fair share" how would you reconcile your basketball fandom, and your politics? Not trying to be flip, but i do believe there's a disconnect, and i'm interested in how you, and others on the taxes-are-too-damn-low-for-the-rich left would feel if the rockets were successful in getting a marquee free agent because Texas has no state income tax.
Im not Deck, and sure he might have his own thoughts, but my initial thoughts are that professional athletes making this kind of money are so miniscule in comparison to those who are really controlling the real wealth in this country. Those are typically the people lobbying for these tax laws with politicians... not professional athletes. So involving the few multi-millionaire athletes in the conversation is like having an opinion about the drapes in a mansion. At the end of the day, its not going to be the tax laws that draw Howard to Houston. Its James Harden and the rest of the young roster to surround himself with. The tax laws just help make it worth his while financially to make the move. The problem I have isn't the tax laws that give states like Florida, and Texas worker benefits(more money in the bank account is always a good thing for everyone), its the abuse that revolves around the folks who control 90% of the wealth being able making all the rules to self-benefit. Anyways, lets carry on without politics in the GARM. Sorry for adding my 2 cents.
I've actually hread about this before. I think Morey might of mentioned it in an interview a year or two back.
Would Dwight rather go to another over the hill team with no superstars in their prime (like the team he is currently on) or a young up & coming team with a Superstar that is still a couple of years away from his prime?
OKC ****ed over Atlanta and Dallas' hopes so bad with that Harden trade it's almost worth having sympathy for them. Almost
That's not to say they will move, but if the main 2 move for "basketball reasons", the others have pretty much been eliminated by it. One team has a 23 yo superstar (one of only 2 people under 28 in the top 8 of mvp voting), the others have a fringe all star or 35yo on the down side.
my point (perhaps inartfully put) was not about Howard's calculus- to me (were I him) it's a no brainer- a young, up and coming team, with a genuine superstar not yet in his prime, a talented GM, a dedicated and flexible owner, and a coaching staff that knows how to get the best out of big men, AND terms and tax advantages that *net* me more income over the lifetime of the deal? no brainer. but for Deck, as a fan, I'm sure he'd be thrilled. but politically, I would think there'd be a bit of cognitive dissonance.
This Rockets team seems to be built around the possibility that Dwight Howard will sign with us. Does Morey even have a back up plan ? You know, if we don't get Dwight Howard ? You can't rely on the entire team's success depending on 1 guy to sign with you. What if he doesn't ...
Is this a joke? We have Asik and cap space for ANY max player. We're the youngest team in the league that only have a year or less of playing time together.
Dwight's income tax is 13.3. 13.3% of an estimated(let's say 23 million per year) is about $3 million. Saves money coming to Houston just off of that. Then factor in cost of living, we win here again. It's just that 1 extra year. So if Dwight picks Houston over LA, he's SAVING money. SAVING MONEY MOTHER****ERS. He's becoming a Rocket!
Why is it ridiculous that had the state of Florida had state income tax that it would have been much more difficult to sell the big 3 on taking millions in take home salary less to sign in Miami??? They could have teamed up anywhere.... like say New York... but why do you think they chose Miami when they knew that they would have to sign for less in order to fit under the salary cap? It wasn't just southbeach and the clubs that were a big draw to team up in Miami. Being able to make up what they were missing out by taking less with tax benefits played a big part in them targeting Miami to begin with.
Correct me if I'm wrong but I think tax increases have to go through the ballot. At least they can be repealed that way.
