This is wrong. He does not pay 13% of $23M in taxes. 13% would be his marginal tax rate, not his average tax rate. From the 2013 California Tax info at http://www.tax-brackets.org/californiataxtable: So even if they implement a new millionaire tax of 13%, that tax rate only applies to income over a certain amount. It is a marginal tax rate, not his average or effective tax rate. Because he still pays for all those other marginal tax rates below 13% for the lower applicable brackets. Further, because he's an athlete, California does not consider his entire income when calculating taxes. They only consider the money from the games played in California. He still pays zero taxes when he plays away games in Texas. This same athlete multi-state tax law also means that he would have to pay income tax even if he signs with the Rockets. He gets taxed for away games played outside Texas. You can read about the multi-state tax law designed especially for athletes and roving entertainers like rockstars and other performers at http://www.alpern.com/tax-professional-athletes This means you can't just apply 13% to his entire salary and say that's how much he saves by playing in Houston. California does not tax his entire salary, only the portion played in California. And the part that is taxed is not taxed at an average or effective taxrate of 13%. He's taxed at a different rate within each separate marginal tax bracket. And he still has to pay income tax in other states for the away games played there even if he signs in Houston. So it's not like he can avoid paying an income tax as a Rocket. While there might be a slight advantage, any advantage from Texas vs. California tax laws isn't that significant when measured against his entire salary. The reason Morey's pamphlet measures the savings in watches and TV's is because he can't measure it in mansions. It's not that big a deal when compared to his entire salary. The extra year in LA outweighs it all anyway, as injury insurance. Not to mention the spotlight of Hollywood and everything else. I don't see either CP3 or D12 leaving LA.
Houston is not the only that that can offer income tax free state. Mavs, Spurs, Grizzlies, Heats and Raptors can also do it. I think out of 6 teams, Raptors has the lowest overall tax. No, Canada does not has high income tax than the US. Thanks to Obama, we have beat Canada, even w/o adding state tax. Tennessee is an income tax free state too. Only tax on dividend. Out of Texas, Florida and Tennessee, Tennessee has the lowest overall tax. Lowest in property tax and lowest property insurance.
Money don't buy a Championship ring. Most (Not all) players would rather sign with the team where they have the best chance to win a Ring.
My thought is that politics should be in D&D, and that's what this has digressed into... a political discussion.
You seriously think you can come in here with facts, knowledge and win this argument? You think being able to articulate very well means anything? Dwight will still be a Rocket. Take your knowledge and facts elsewhere. This is our city. P.S don't educate Dwight but keep me informed as I progress in my career about tax evasion and loopholes.
