Flacco is "technically" the 2nd-highest paid NFL player when taking into account...

...his taxes!

When adding in Maryland's state and local Baltimore County tax rates, he will earn less than Drew Brees who pays less in Louisiana taxes.

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By choosing to remain a Raven, Flacco is now set to pay a combined marginal income tax rate of 51.98 percent. This overwhelming tax rate is composed of the federal, Maryland, and Baltimore County income tax rate, as well as the Medicare tax. And that’s excluding his “jock tax” liability for away games – play the Patriots at Gillette Stadium, pay Massachusetts income tax on earnings for that game - and other taxes levied against him such as Maryland’s property tax.

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http://www.atr.org/tax-bite-leaves-f...ond-best-a7506

I've always been surprised someone like Jerry Jones doesn't tout Texas' low taxes when trying to woo potential free agents?!? Maybe the NFL doesn't allow that as some of the East Coast teams (especially the Giants, Jets, and New England) have some of the highest taxes rates' in the country.

In that case, Tennessee could make a killing on free agents. They are one of the lowest taxed states.

So look out world, here come the Titans!

No? I think other factors are going to keep outweighing taxes.

That is if Joe files his state return as a Maryland resident. It would not surprise me if he files his tax as a NJ resident.

Then again, Joe might have a sound team of financial advisers who could potentially help him minimize his tax rate. Until we know his actual tax rate or status of residency, I think this post is rather simplistic.

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Originally Posted by Random Thoughts

That is if Joe files his state return as a Maryland resident. It would not surprise me if he files his tax as a NJ resident.

Then again, Joe might have a sound team of financial advisers who could potentially help him minimize his tax rate. Until we know his actual tax rate or status of residency, I think this post is rather simplistic.

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He has to pay taxes to the state where the money is earned. He then gets a credit for that amount from the state that he is a resident of. Pro athletes actually have to file returns for every state they play a game in.

Hopefully he has a really good accountant who can keep Uncle Sam out of his back pocket.

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Originally Posted by Random Thoughts

That is if Joe files his state return as a Maryland resident. It would not surprise me if he files his tax as a NJ resident.

Then again, Joe might have a sound team of financial advisers who could potentially help him minimize his tax rate. Until we know his actual tax rate or status of residency, I think this post is rather simplistic.

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I actually think Jersey might be higher tax-wise but I'm sure he defers some of his income to investments that aren't taxed. Either way, he's pretty much set financially.

That's why many athletes move their primary residence to Florida or Texas.

They still pay state taxes in the states where they play games but at least a little bit is saved by claiming Texas or Florida as your primary residence.

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Originally Posted by downside52

Hopefully he has a really good accountant who can keep Uncle Sam out of his back pocket.

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It's not Uncle Sam. It's Uncle O'Malley. Maryland has -- rightfully -- earned the name "Tax Hell" for many decades. High paid Ravens have been commuting for years to Maryland from low tax states. e.g. Todd Heap in Arizona, Jon Ogden in Las Vegas. I believe that Suggs lives in Arizona.

Remember a couple years ago when O'Malley tried abusive taxing of millionaires? One-third of them fled Maryland, and tax revenues from millionaires dropped by $100 million. Fuckin' brilliant! :grbac:

I hope that Joe Cool moves to a low-tax state just to get more national attention to our tax plight. I can't wait until the day that my wife agrees to move to Florida!

Quote:

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Originally Posted by Random Thoughts

That is if Joe files his state return as a Maryland resident. It would not surprise me if he files his tax as a NJ resident.

Then again, Joe might have a sound team of financial advisers who could potentially help him minimize his tax rate. Until we know his actual tax rate or status of residency, I think this post is rather simplistic.

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I stand corrected, I didn't know there is such a thing called the "jock tax". I am neither a republican or a democrat, but those excise tax policy is getting rather absurd.

Pretty sure Heap had a home in MD. Wasn't he on Hard Knocks with his wife looking for houses in Owings Mills? Ray still has that palace in Hunt Valley. And I know Suggs has a place downtown in Federal Hill.

Point is they can have a home in MD and still get income tax benefits by claiming a residence in a more tax friendly state.

NJ, NY and Mass have higher taxes than MD. And I moved to TN where there is no state tax but they still tax the hell out of me in 500 other ways...

Over here there's one tax rate no matter where you live, which obviously varies based on earnings etc, but of two people have the same earnings they will get taxed the same no matter if they live in Scotland, England, Wales or Northern Ireland.