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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.
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.
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.
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03-08-2013, 07:55 AM #2
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Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
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..
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“When I think of a Baltimore Raven - we go in there, we take your lunch box, we take your sandwich, we take your juice box, we take your applesauce, and we take your spork and we break it. And we leave you with an empty lunch. That’s the Baltimore Raven way.” - Steve Smith Sr.
Call me a Special Teams coach again. I dare you! I double dare you, MFer!
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Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
Florida is the other state for no income taxes. That's why Labron James went there instead of NY. He saved millions in income taxes and NY fans were pissed because Labron wanted to go there. I'll be moving to my condo in Daytona when my mom dies to escape high taxes here.
These states mentioned are favorite places for retirees to move to.
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Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
Politics? Here? C'mon guys I know it's slow but........
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03-08-2013, 07:56 AM #5Regular 1st Stringer
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Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
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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Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
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03-08-2013, 01:19 PM #7
Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
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Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
No. An agent can earn the money from his office. He can claim that he meets his clients in various places but the work that he performs is from a particular location. A player is paid for games that take place in specific locations. The only thing a pro athlete can do is decide to play in a state that is tax friendly so at least half his salary is taxed at a more favorable rate. Teams from Texas and Florida have always pushed that when trying to sign free agents.
I used to work for a public accounting firm that had several MLB players as clients. Their returns were really crazy because you would have to account for every single game as a percent in a particular state. California at the time was talking about making it even worse by wanting to count rainouts differently. I'm glad I got out of there before that happened.
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03-08-2013, 04:29 PM #9
Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
The term 'Jock Tax' is a misnomer. Technically anyone who earns money in a state is supposed to file taxes in that state. For example, if you are a salesman who travels, you are supposed to file taxes for each state in which you make a sale. However, for most of the population the tax money that that state would receive is not enough to merit going after (i.e. it would cost more to try to collect than what they would collect).
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03-08-2013, 04:32 PM #10Legendary RSR Poster
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Re: Flacco is "technically" the 2nd-highest paid NFL player when taking into account...
I'd hardly call it a misnomer ....
http://taxfoundation.org/tax-topics/jock-taxes
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03-08-2013, 04:47 PM #11
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