"The signing bonus will be the biggest chunk of Thibodeaux’s rookie contract. It will be taxed at the rate applicable to the state where the check is issued."
Does that mean a signing bonus ceremony can be done out of state? Could they get away with it? The NFL is too woke to find out.
The young draftees(instant millionaires) are too naive and ill informed to know they’re being taken to the cleaners right off the bat. A wedge to be driven in between the lefties and the ‘nouveau rich’, most of whom are black btw.
The NFL Competition committee meets every year and knows this is unfair. Perhaps a salary cap ‘curve’ would allow some teams to raise their cap. NY and Ca. have 3 teams each. But then it doesn’t effect management so they could care less.
NFL meetings start March 27 btw.
CA would definitely go after the money, and probably threaten charges of tax fraud. Also, on big earners like this, CA is trying to pass a huge tax increase to fund “single payer” healthcare. Just like Kayvon, the millionaires (and their companies) who fund Kaliforneea’s socialist nightmare will flee.
Its why Steven Stamkos signed his contract extension ($68 million) a few years ago with the Tampa Bay Lightening, despite heavy recruiting from his “home-town” team the Toronto Maple Leafs.
33% Canada federal tax
13.6% Ontario provincial tax
0.65% yearly Toronto property tax
13% Sales tax
So he saved himself $6-8 million by staying in Florida.
It is not only the pro athletes who are getting screwed by the State of California. When young California kids enlist into the armed forces California will tax them on their military pay. That could be a lot of money if the person decides to stay in the military for 20 years. If you know any young people who want to enlist tell them to get on a bus or a plane to Florida, Nevada, Texas, Tennessee, or Ohio and visit a military recruiter in those states and use an address there as your military home of record.
Income taxes encourage sloth and crime.
Sales taxes encourage wise buying.
my friend was asking,, why are his bonuses taxed so much more than theirs?
My understanding is that most states will tax the income athletes earn in the state even when they don’t live there. For example NY charges state income tax on visiting players for the games played in New York.