Forbes makes tax case for cp3 not losing as much as you think by going to the spurs (unsaid is mavs and Houston as well).
www.forbes.com/sites/anthonynitti/2...lure-chris-paul-to-the-san-antonio-spurs/amp/
Forbes makes tax case for cp3 not losing as much as you think by going to the spurs (unsaid is mavs and Houston as well).
www.forbes.com/sites/anthonynitti/2017/06/26/how-the-trump-tax-plan-could-lure-chris-paul-to-the-san-antonio-spurs/amp/
One part of their argument is very real right now, the difference in Zero Texas state income tax on the bulk of his salary and endorsement money and the California state income tax (13%) on it.
The federal tax change part of their analysis is a lot weaker, because it requires that the federal tax law change to eliminate deductibility of state income taxes. Your guess is as good as mine as to whether that actually happens.
Currently the difference is about $25 million, not the $50 million it looks like in the raw numbers. and that number could be smaller if the federal code changes.
What is a better ring chasing chance worth?
So, CP2, Pau Gasol, and Kawhi Leonard ? Is that what you people are putting together as a championship team ?
HUH?? Highest tax rate in CA is 13.3%. A $210M supermax would net a theoretical savings of $28M. What RC is also missing is that players' salaries aren't completely taxed in the states where their franchises reside. The 41 road games are taxed at different rates in the states where the games are played. Thus he saves some additional money for earnings not in the state.
He will not save even $30M on his contract and that is not "about $35M" by any reasonable definition of the term.
It's also apples and oranges. One is a four year deal versus a five year contract. It assumes he doesn't play a fifth year. If that's the case, you can't include the "earnings" in Year 5 from the Clippers' deal.
If Chris plays in Year 5 for the Spurs, he won't make the crazy number for the Clippers, but it's likely that he'll still be making at least $20-25M or he won't play.
Year 5 for the Clippers will be about $53M. If he only makes $20M in Year 5 for the Spurs, when you add the tax savings, the net difference will be in the $10-15M range NOT ~$35M. Even if he only makes $10M in year 5, his "loss" will max out at about $25M.
i am skeptical that paul ends up with the spurs. however, for some reason i did not consider income outside of basketball and the state income tax savings. that's a nice boost but i don't think it would be enough.