Baseball, Taxes, and Apple Pie

David BoazKen Rosenthal of The Athleticwrites:TheAngels were in the mix for free ‐​agent right‐​handerNathan Eovaldi, but faced two disadvantages. One was Eovaldi ’s desire to return to his native Texas; he is from Alvin, about a five ‐​hour drive from theRangers ’ home in Arlington. The other was the difference in state income taxes. California ’s top rate is 13.3 percent. Texas has no state income tax.So let ’s see. If Eovaldi is making $17 million a year, as reported, then that California tax would cost him about $2,226,000. Look at it another way: First, the feds take 37 percent of income over $539,000. That ’s a little over $6 million, leaving Eovaldi with about $11 million. The California income tax would take another 20 percent of that, leaving him with about $9 million. Which is not a bad salary for playing a game. Still, when you ’re the player, that $2 million difference would matter. (Note: I’m rounding off the tax numbers, and I haven ’t checked the specific details of when and how Eovaldi would receive his money.)If this did make a difference for him, he wouldn ’t be the first athlete to think about state taxes. WhenTrevor Ariza decided to leave the Washington Wizards of the NBA and join the Houston Rockets, theWashington Post noted thatWashington was disappointed but hardly shaken when Ariza chose to accept the same four ‐​year, $32 million contract offer in Houston, where the 29‐​year‐...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs