By choosing Miami Heat, LeBron James saves millions in state income taxes
When he announced his intent to sign a contract with the Miami Heat, LeBron James stressed winning championships, not cutting his taxes.
Even so, Florida economic boosters pounced on James’ decision as an opportunity to tout the state’s lack of an income tax.
"Make no mistake, LeBron James is as large as any corporation moving to our area," said Kelly Smallridge, president of the Business Development Board of Palm Beach County.
Smallridge noted that James will save millions over the life of the five-year contract he’s expected to sign.
James entertained pitches from teams in six states. Five of those states – Illinois, Ohio, New York, New Jersey and California – impose income taxes. The highest rates on individuals in 2010 range from 3 percent in Illinois to 10.55 percent in California, according to the Tax Foundation.
If James signs a deal totaling $96 million over five years, his state income taxes would range from nothing with the Heat to nearly $2.9 million with the Chicago Bulls, roughly $8.6 million with the New York Knicks or New Jersey Nets and $10 million with the Los Angeles Clippers.
And those bills could increase if tax-strapped states raise their income tax rates. But an income tax in Florida is a near impossibility in the next five years.
Don’t forget city income taxes. Cleveland has a 2 percent income tax on top of Ohio’s income tax, while New York City’s income tax tops out at 3.65 percent.
"We think that’s why so many millionaires move to Florida," said Edie Ousley, spokeswoman for the Florida Chamber of Commerce.
http://www.palmbeachpost.com/money/by-choosing-miami-heat-lebron-james-saves-millions-794079.html
God bless Florida!
D.R., East-Coast Elite – I’m here in Miami, Fl my thermosat for my air condtioning says 68 deg. I feel cool and comfy, how do you feel?
Lebron – was seen hanging out here yesterday!
http://www.youtube.com/watch?v=fKcTQb9ifhM&feature=player_embedded
Not only will they NOT move there… But they will FLEE those states in MASS.
July 24th, 2010 at 12:56 pm
I think the bigger point is that James has the wages to pay the taxes.
References :
July 24th, 2010 at 1:38 pm
LOL
I hope Lebron enjoys the relentless humidity, suburban sprawl, and old ladies driving 35 mph on the freeway in their Bentleys.
References :
July 24th, 2010 at 2:21 pm
Not only will they NOT move there… But they will FLEE those states in MASS.
References :
July 24th, 2010 at 2:39 pm
Most rich people live in NY and CA. They tend to stay there too.
References :
July 24th, 2010 at 3:05 pm
Yes,people tend to move to where their money goes further.So why would any business choose NY or California?
References :
July 24th, 2010 at 3:11 pm
No. Rich people don’t worry about taxes. There are a multitude of ways that the rich avoid paying taxes.
Warren Buffett pays taxes at a lower rate than his secretary! Moving to another state isn’t even something he’d consider as a tax savings.
The FL CoC would like for rich people to move to FL, but the fact is the state has been losing population for several years. The housing market crash caused the state to lose population for the first time in decades.
References :
http://www.timesonline.co.uk/tol/money/tax/article1996735.ece
http://www.orlandosentinel.com/features/os-slow-growth-fla-20091106,0,357572.story
July 24th, 2010 at 3:58 pm
Yes, and the concept is nothing new. In the 60’s the Beatles moved away from England, to places like America, to escape the 99% (?) tax bracket they were in.
References :
July 24th, 2010 at 4:16 pm
Nonsense :
The real reason that Lebron James rejected NYC is because he isn’t man enough to deal with what would happen if he failed in the greatest sports town in the US
References :
Derek Jeter
July 24th, 2010 at 4:35 pm
Of course people will move out, and if they couldn’t many or most would stop producing. It’s not a guess, it’s what happens. Much empirical evidence on that, lefties try to bury it.
Why bury it? Because they are not about more revenue which anyone with a brain knows comes from tax cuts, they know damned well. They are about blowing the economy of the country & gaining more control. Dependent people are controllable.
References :
The ultra rich, way above LeBron James level, don’t pay taxes. They are almost all democrats. Note how many of Obama’s elite picks didn’t pay their taxes? They don’t get called on it, they have an incestuous little club, they are covered because their allies grease the Justice Department and the others and punish those in those departments who go against one of the group they have going.
July 24th, 2010 at 5:17 pm
Possibly this is the most over-hyped story of the decade.
Miami has a better chance of winning a championship which seems to be what he’s looking for, I don’t think the money for him entered into it, and I doubt if he seriously is worried about paying taxes.
Rich people have more than one home, many,many rich people live in both NY and Fla. not to mention one or two overseas places or a home in the Caribbean. They go to where there is nightlife and great shopping.
There are seven states where there is no state income tax, LeBron didn’t move to any of those either.
References :
July 24th, 2010 at 5:46 pm
No, because some rich people are so liberal that they won’t mind living with other liberals.
References :