Kobe will only receive $10.6 mill of his $24 mil contract due to taxes

Introduction to the most dysfunctional state in America.
It has great weather, great food, nice beaches, and even nice mountains.

Fine print (in 2 pt fonts): ... additional taxes may apply, including but not limited to 13.3% income tax, 1.5% State Unemployment Tax, 1.5% State Disability Tax, 3.6% excise tax if you dare to make over $1M, and possibly more in county and city taxes.

 

24mill - 13.3% does not equal 10.6mill

 

Lol. Yep thank god I only make 50,000 instead of 24 million.

 

Lin came here because this was the only team to give him a good offer. NY gave him no offers and wanted him to find his market rate and they would match.

Howard came to play with Harden/Parsons and because he didn't get along with Kobe especially his comment I'll teach Howard to win championships or something of that line.

Taxes played almost no factor.

If it was money Howard would have prefer to stay in LA because of the extra year at the max and endorsement opportunities in LA

 

Agreed. When they broke it down the "no state tax" helped make us a lot closer in the value of our offer but LA was definitely the place to stay if he was in it for the $.

 

The extra year plays absolutely no factor... Howard is going to get the max that year whether he was with the Lakers, whether he re-signs with the Rockets, or with any other team.

Also, it is impossible to quantify the effect that playing in LA vs. Houston has on endorsement opportunities.

 

Kirby for OSIK?

 

Forgetting about DC's share are you?

 

There is no way that this could be. I would imagine Kobe getting somewhat taxed by the state of CA. This is like me living in NYC, but then working in Houston for 6 months out of the year and not getting taxed on that 6 months. If this were true, then more people would be doing this.

 

You need to also add in federal taxes.

 

As an fyi, Cali taxes every cent Kobe makes, whether he plays against a Texas team, or against a NY team, or even paid by a Turkish airline, he still ends up paying the 13.3% state tax, he can deduct the taxes charged by other states from that 13.3% but he's always going to end up paying it. That's how their tax law is written.

 

wait there's no taxes in Texas? WTF I pay 35% of my salary to the government and I pay an additional 15% on everything I buy (except for raw food). Looking to immigrate to Texas soon. srs.

 

Pro athletes cheat the tax code just like all the rich do. Let's say of the $24 million, Kobe donates $5 million to his charity. That's a $5 million deduction, taking his income down to $19 million. Then he'll use that charity money to expense his car, jet, vacations, etc. Then all the maids and chefs he hires are on the Kobe, Inc. payroll. He gets a credit because he's creating jobs.

Kobe's earned income is probably down to $10 million after this 5 CPAs are done looking at it.

 

Watching Kobe stealing money from the Lakers right now is hilarious. The guy is done as an elite player but he will still give the Lakers some financial clout because of his off the court pull. His on the court pull is done for.

 

He could conceivably do things with his endorsement money (that's not what the "rich" do, what they has to do with how they get paid), the nba salary is so structured, there's not a lot that can be done different to anyone else.

 

In previous years, yes. California is special.

The athlete now pays the jock tax even if they play out of state.

All state should have a jock tax for CA players, since they are required to pay 13.3% any ways.

 

So, $5 mln to Charity plus another 20% in state taxes for $4.8 mln and another $3 mln or so in housing interest and property taxes leaves him with Federal Taxable income of around $11.2 mln, less 3% phase out deduction of $336,000 + 39% federal = total tax of around $4.7 mln

So Kobe's income at $24 mln = 12.8 mln deductions + $4.7 mln federal tax = $7.5 mln in available cash.

 

Thank you, I did not know this.

 

No, they won't. $200,000 doesn't even get you to the top tax bracket of 39.6%, I think that everything over $170k is taxed at 36%. You also get to deduct your state income (and other) taxes from your taxable federal income, there are a great many other loopholes and deductions that people can take advantage of as well.

Anyone who ACTUALLY PAYS 50% of their income in taxes needs to hire an accountant because they're doing it wrong.