Friday, July 16, 2010

life and (less state income) taxes: the case of LeBron James

A lot has been said about LeBron's decision to pack up and head from Cleveland to Miami.

People have talked about greed, but he's earning less.
People have talked about pride, but he's going to a team that already has a larger star.
People have talked about a lack of civic duty, but he worked for Cleveland for seven years.

Here's a WSJ piece on living the high life in Miami.

But another interesting consideration is state income tax burdens-- and how he will avoid that burden in his new home. Compared to Ohio, he will avoid taxes of about $1 million per year on his salary and a lot more than that on his endorsements. Compared to New York City's 12.85% tax rate, the numbers become even more ridiculous.


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