Will Tax Law Changes Benefit The Bobcats?

[westbrook08]

Let me just state that this thread is in now way political and i don't want anyone using it as a jumping off point for a discussion of such a heated topic.
It has been widely reported that North Carolina will be doing away with state income tax very soon. It is getting ready to go to vote,and considering both houses of the state legislature and the governor's office are all the same party,there's no reason to think it won't pass.
Do you guys think that this is something that will help the Bobcats be more competitive in terms of operating costs when combined with the benefits of the new CBA? And do you see this helping us lure better free agents,since they will have to pay less taxes out of their contracts,similar to how it is in Florida?

[Chef]

posted this to realgm in a thread about whether the lakers will always be an elite team. someone said they will always be a great free agent destination to import new talent:

this may not always be the case. as the reality of an effective tax rate of 60-70% combined from fed, state and local taxes sets in on athletes and show biz stars it may prove to be a deterrent in the future. yes, the players are younger and don't always think of this, but at some point, financial advisers and agents will bring this up; and when the numbers between california and arizona/texas/florida drift further and further apart, LA could lose a great deal of appeal for those seeking the biggest contracts during peak earning years.

not trying to bring politics into this by any means but phil mickelson just let it slip that he is looking at doing this very thing.

i think no NC state taxes definitely can't hurt, but it may not make that big of difference. unfortunately, young men (the vast majority of young men but athletes in general) are financially illiterate and think more with their egos than logic, so i suspect as long a charlotte remains a non-destination city, it will be tough to consistently get the biggest free agents.

now, if only this current crop of majority state politicians would abolish the property tax, we would be getting somewhere.

[westbrook08]

I'm not necessarily talking about guys like Lebron and Dwight and A list players. We had several near misses this past summer on guys who were seriously considering coming here. And these weren't guys coming out of college,they were vets who had already been through at least their first contracts and seemed like a little more more money here and there actually mattered.
My personal opinion is that i think it will matter.This bill actually includes a 15% reduction in business taxes as well as having none for income. I think saving a lot of money on state taxes along with getting nice payouts from the CBA will help Jordan run this franchise a lot smoother, Especially when we re brand back to the Hornets and start winning a little more. I also think it will have an effect in free agency. I've heard quite a few players over the years mention wanting wanting to play in Florida because of the tax situation. Granted, most of them were baseball players,but i think it has a chance to be a factor.
That's just my opinion. I'm still curious to hear the thoughts of others on this topic.

[Chef]

I'm not necessarily talking about guys like Lebron and Dwight and A list players. We had several near misses this past summer on guys who were seriously considering coming here. And these weren't guys coming out of college,they were vets who had already been through at least their first contracts and seemed like a little more more money here and there actually mattered.
My personal opinion is that i think it will matter.This bill actually includes a 15% reduction in business taxes as well as having none for income. I think saving a lot of money on state taxes along with getting nice payouts from the CBA will help Jordan run this franchise a lot smoother, Especially when we re brand back to the Hornets and start winning a little more. I also think it will have an effect in free agency. I've heard quite a few players over the years mention wanting wanting to play in Florida because of the tax situation. Granted, most of them were baseball players,but i think it has a chance to be a factor.
That's just my opinion. I'm still curious to hear the thoughts of others on this topic.

i think you are spot on with vets. particularly those like gerald wallace or steve nash who are signing their last decent contract, still have some game left, but are very wise to the money.

[CatNation]

iirc the CBA allows salary adjustments to put all teams on an even playing field regarding taxes

[JMo]

iirc the CBA allows salary adjustments to put all teams on an even playing field regarding taxes

Not necessarily a completely level playing field... So state's w/o an income tax do have a slight advantage over states with one...

76. Are teams really competing on a level playing field? Since the tax rate is different in the different states and Canada, don't the teams in a more "tax friendly" state have an advantage over the other teams?

Yes they do. For example, an offer from Orlando will provide a higher net income than the same offer from Los Angeles, because the player will play at least half his games in a state with no state income tax.

http://www.cbafaq.com/salarycap.htm#Q76

[westbrook08]

That's pretty much what i was thinking. According to this bill, Jordan would get a 15% business tax cut,a break of having no state tax on his own income(which matters because he bought the team himself),and we'd be more competitive in free agent offers. Plus from everything i've read, Charlotte's first payout from the new CBA is supposed to be about 20 million. You'd think all those things would help the rebuild along in some capacity.