Not Bengals Related But...

...some dumb shit is going around about how Lebron will earn more in Miami because Florida has no state income tax.

That would be true only if his future earnings in whatever state he could have played in (Florida, Ohio, Illinois, New York) were going to be almost identical for his entire career.  The trajectory of his future earnings likely swung by tens and maybe hundreds of millions of dollars based on his decision Thursday night on where to play.  

I am sure many right here in Ohio would argue he just destroyed his brand and limited his future earnings by a substantial amount.

So, about 8% state taxes versus 0% state taxes matters not one bit.  If Lebron based his decision on his tax savings in Miami, he is a jackass.

Anyway, hopefully the "Decision" laid waste to the idea that all PR is good PR.  Jury is out on if I feel the same way about Chad's new reality show.  See?  I ended up tying this into the Bengals.

Comments

[Sly Vramavomovich]

That tie in to the Bengals was tenuous at best.

[Sly Vramavomovich]

That tie in to the Bengals was tenuous at best.

[blesterov]

Lebron was smart to leave. His endorsement value just increased since he is in a larger market. The tax issue is retarded b/c they have income tax in FL still. It is just people trying to make it look like taxes are big deal to get the teabaggers all hard.

Funny that this is now the most famous sports figure in Ohio, according to Chad: http://www.insidesocal.com/tomhoffarth/carson-palmer-hot-dog.png

Who Dey Revolution should offer to act as his marketing agent for free so something like that never happens again. He needed Jenna Malony to tell him not to use the props:
http://www.hulu.com/watch/72160/30-rock-stealing-the-spotlight#x-4,vclip,4,0

[WhoDeyFSU]

"The tax issue is retarded b/c they have income tax in FL still."

Wrong. In Florida, we still have the federal income tax but we don't have a state income tax. Additionally, Miami doesn't have an income-based city tax like Cincinnati.

The tax argument, however, is null and void since professional athletes have to pay multiple state taxes depending on where they play their games. Lebron will be paying taxes in pretty much every state next year (he just gets to keep the money he makes when playing home games in Florida).

[B_town]

The tax issue is not 'retarded' as your infantile pejorative implies. That 8% was going to be paid on his NBA contract but also on his deals with Nike and who ever else he signs with during his career. Sure, many cities make you pay taxes when you play in their arenas but you still play half of your games at home. Personally, not losing 8% of a 100 million Nike contract sounds good to me. The dirty secret is that many NBA players live paycheck to paycheck. Once you factor in the fed, local, city and property taxes add in agent fees and entourage maintenance and these guys don't have much left.
Claiming that the taxes are not an issue is the reason Ohio keeps losing college grads. It's also the reason Griffey and Larkin both lived in Orlando. Maybe you should do some reading and leave the hurtful words out of your posts. Although, the only person with diminished mental capacity I've seen around here is you.

[colin]

B_town: take it E_asy. I'll fix the language of the previous offending post so that it doesn't jar against your delicate sensibilities: "the tax issue is diminished mental capacity b/c they have income tax in FL still." Is that less hurtful for you? I normally don't comment on this site, but I'll gladly defend someone's right to be crass on an informal football website. Other than that, I couldn't begin to question your flawless logic that attributes college grad attrition in the state of Ohio solely to one dominating factor: one man's inability to consider the tax consequences of another man's life choices.

[Sleeping With Bieniemy]

@B-Town - the point is that Lebron will choose where to go based on how that decision will affect his lifetime earnings potential, not on the local state taxes. Let's say you think his brand is more valuable by staying loyal, becoming a basketball God in Ohio, and winning titles on his own terms instead of being second fiddle to Dwayne Wade. Let's say you think this will increase his lifetime endorsement and branding opportunities by $500 million more than what he can get by holding a craptastic one-hour special on ESPN and dumping his team for Miami. Then he doesn't really give a shit about tax rates, he'll take the marginal $500 million he creates by staying in Ohio.

Or say he goes to New York and becomes the basketball fucking messiah of the capitol of the world. And his lifetime potential earnings are a billion dollars more than they would be in Miami. Again, that will affect his decision, not local taxes.

Now, if he thinks his income will pretty much be equal no matter where he goes, then yes, state taxes will be important.

Again, he should be making his decisions based on his future potential earnings first...then he can consider taxes after. But given state taxes are deductible against federal, that Florida may institute a state income tax to balance their horrible budget, and that they likely have high property/sales taxes to make up for lack of income tax, it shouldn't be a major factor.

[blesterov]

FSU, you are correct. I was referring to federal income tax- we all pay it. I don't see teabaggers complaining about state taxes, nor do I hear them complain about it when I talk to them. It is all about the federal taxes with them. Thanks for backing up my claim that the tax headline is not relevant.

B-town, I used retarded as sarcasm. Infantile, yes, but following Palin's definition, it was an acceptable use. I would be happy to discuss with you why Ohio is loosing college grads (including me), but this is not the place for it.

I am sure Lebron and other smart athletes have good accountants that help them avoid taxes. I work for very wealthy individuals (Liberals and Conservatives) that make more money then Lebron, Palmer, etc. and I have seen how they avoid taxes and maximize their write-offs which is all perfectly legal. I don't make the money they do so I can't do what they do.

If Lebron had a good accountant (since he consults Buffett for advice I assume he does), he most likely was paying less then 8% so your point that loosing income to taxes is really moot as FSU claimed. Even if the guy did make $100 million and gave up $8 mil in taxes; it is still not that significant of an amount to make you move teams! 20-40% I could understand, but not 8%.

If your theory was correct, nobody would play for a LA, NY, Chicago or Boston team since they have higher tax rates than Ohio. The Kansas City Royals and Chiefs would be annual powerhouses if that were the case. There is a big difference between living out of state (Larkin and Griffey) to avoid income and inheritance taxes, and leaving your team to avoid taxes. In fact, it is a separate conversation.

Ironically, Lebron is a donor to the Democratic party so I think he is ok with giving up some of his wealth back to society regardless of which team he plays for.

[Comrade Ken]

The state tax savings is merely a benefit not a reason for leaving. The "benefit" derived from the lack of a state income tax also assumes he officially changes his state of residency to Florida (he has said he considers Akron home and won't leave). Yes he will have to pay tax in the states he travels to but only on his NBA salary not his endorsement and other income. Time will tell if the move affects his future earnings but if you assume his annual earnings are $50 Million, he saves about $3 million/year, not bad but not enough of a reason to switch teams.

I don't like the fact that Lebron left the Cav's and completely despise the way he went about it ("The Decision" WTF was that shit?)

[blesterov]

Colin, thanks for the PC re-write. Your version does sound better. Since no one else is commenting and it is a slow news week, except that Bristol & Levi are now engaged, what are people's thoughts on why college grads are leaving the state?

To fuel the fire, I'll start. When I completed my master's at Ohio State in 2001, I immediately left for Chicago, which has a higher tax rate (state and city), has higher cost of living, and the pay increase when compared to Columbus was not that significant (I think my salary was $8k more doing the same job). According to B's theory, I should not have moved up the tax ladder, but rather gone to Kansas, Texas, or Florida.

The reason I left for Chicago was because I wanted a better place to live, and I was willing to pay for it. I was born and raised in Ohio, and I wanted to try something different. I like C-bus, but there is not much there when you compare it to other cities. You pay higher taxes in Chicago, but you get a lot for it: a clean and thriving city, excellent public services (parks, beaches, dog parks, dog beaches, dependable public transit, street festivals, etc.), and there are plenty of things to do around town.

I have to assume other college grads who leave Ohio do it for similar reasons to mine: to find a different way of life. A lot of my friends still live in C-bus (some who live outside the city are members of the tea party movement), others live in Chicago, Cincy, Denver, Chicago, San Diego, Ft. Worth & NYC. Some left for lower tax areas and others moved to higher tax areas. But I must admit I never heard taxes ever mentioned in their reasons to move.

With the recession/ depression, I can understanding people leaving to go where the jobs are, but again I don't think there is a high correlation btwn taxes and unemployment rates. I would have to see definitive proof of that to change my mind.

Anybody else bored, and want to comment?

[Artrell]

who the hell cares? Aren't we talking about Cleveland, OH (not TN)... so they lost a player on their bball team. Really, why should we care? I love the comments about how "Lebron broke Ohio's heart". As far as I know, people born and raised down here on the southern border could give a flying f*ck about what goes on in Cleveland.

[loser]

i know why blesterov doesn't make that much.... he looses all his money

[colin]

Artrell: agree and double-agree. The only thing that breaks my heart is my football team's inability to win a playoff game in the last 19 years and my baseball team's inability to do the same in the last 15 years. I like Cleveland fans more than Steelers fans, but that's about it. I know it's the offseason and this entry was just for shits and giggles, but I'm genuinely surprised by how many people from the Nati cheer for the Cavs. We don't have a professional basketball team and that sucks, but creating an artificial allegiance to another city's team (which is no closer than Chicago's) is pretty beat.

[JM]

A 25 year old multi-millionaire has a dilemma..........

Miami or Cleveland? Miami or Cleveland? Hmmm

Just gonna have to go with Miami.

What was Cleveland doing to upgrade the roster?

Obviously the owner of the Cavs is a dickhead.

Mickey Arrison is a good owner, Pat Riley knows as much about basketball as anyone........... ever.

And then there are the two all star team mates.

Was there ever a decision?

Had he gone to the Knicks or Nets I'd think poorly of him. But Miami with winning ownership, good weather, good teammates? And then there is the obvious........... lets just say that Ohio gals aren't exactly south Florida quality or quantity.

Who can be mad with him? People the simple fact is Cleveland/Canton/Akron is a shit hole. The opportunity to get out of that environment when you've been there your entire life??????????

Bu-bye

[CurseofBoJackson]

Love it Artell, "what he said." Who cares?

[DELONTE]

Lebitch James sucks dick... and so does his momma