New York Knicks
Since taxes may have been a contributing factor in LeBron James’ decision to go to Miami (Florida has no income tax) over Cleveland and New York City, Americans for Tax Reform lays out hypotheticals for other NBA stars that may consider free agency.
It’s not hard to see where they come out the best:
Were taxes a factor in LeBron James picking the Miami Heat over other teams, such as the New York Knicks, the New Jersey Nets or even his former employer, the Cleveland Cavaliers? It’s a question worth looking at:
In a July 1 blog post, the New York Post warned that “dysfunctional lawmakers in Albany” could cost the state a chance to bring the coveted athlete to New York.
“If LeBron James goes to the Miami Heat instead of the [New York] Knicks, blame our dysfunctional lawmakers in Albany, who have saddled top-earning New Yorkers with the highest state and city income taxes in the nation, soon to be 12.85 percent on top of the IRS bite,” the Post said.
The tax savings for James in Miami over New York City would be staggering, according to the Post’s analysis.
“On a five-year contract worth $96 million — what he’d get from the Knicks or the Heat — LeBron would pay $12.34 million in New York taxes.” Florida has no state income tax.
New Jersey and Ohio, the other reported frontrunners to attract James, also have state income taxes, but they are not as high as in New York. Based on a $96 million contract, James would pay $5.69 million in state taxes if he re-signed with the Cleveland Cavaliers. If he signed with the New Jersey Nets, James would pay $10.32 million in state taxes.