Boiled down:::
Kobe: 5
the tired old bag Duncan: 4
Are you serious?! Read what you just wrote. He chose to go to a team with another star, less spotlight and less pressure. I get the troll job but Dwight already did all of the above you trolling about maybe you just dont remeber because it was in Orlando ...
Killed his coach? check.
Slammed his team-mates? check.
faked a injury? check
Only person full of baloney is you here, and I actually like you.
Ugh. I thought this was dispelled a long time ago. Players income is taxed on every state they play, not just their home state. The tax advantage is negligible compared to $30m he left on the table.It's a shorter deal, but it's well known Dwight will actually make more because of the tax differences between CA and TX.Year 5 will come with a new contract, he has an ETO in 2016 in what could be his last big payday.
Here's an article explaining the math in Lebron's case (which was only a $4.1m difference over a $100m contract).
http://taxfoundation.org/article/sta...n-better-miami
Steve Nash getting all Fs like an inner city kid.
Killa deflecting per the usual.... Kirby quitPERIOD
I am not even disputing the Kobe bashing just disputing that EL is acting like Dwight did not do the same ...maybe he learned it from Kobe ...but my point stands.
Again stay out of OG convos you have moved up the ranks CN, but you not on Amb, DPG or El's level even if some of them have been slumming lately ...
Nope. Lebron's case is different than Howard.
This is by far the most detailed explanation and breakdown financially of Dwight's decision.
But what happens if Howard takes his talents to Texas? As a resident of a state with no income tax, Howard’s earnings would only be taxed to the extent he has duty days allocated outside of Texas. Sweetening the deal further, as a member of the Southwest Division, the Rockets play two road games apiece against the San Antonio Spurs and Dallas Mavericks. And if you’re one of the 6% of public school graduates who understand basic geography, you’ll recognize that those teams are also located in Texas, and so that income also escapes tax. In addition, the Rockets will play one road game each year against the Miami Heat and Orlando Magic, who are located in Florida, which also does not have an income tax. And lastly, they will play two road games each year against the Memphis Grizzlies, where a $2,500 per game “privilege tax” on athletes maxes out at $7,500 annually. Thus, in total, the salary earned from 49 of Howard’s 82 game days would largely go untaxed at the state level.
For the sake of argument, let’s assume that the NBA season comprises 270 duty days, from the beginning of training camp until the playoffs mercifully conclude in late June. Let’s further assume that the average state income tax rate in those states the Rockets compete in outside of Texas is 5%.
We’ve already determined that Howard will play 49 games in states with no income tax, meaning he will play 33 games in states with a tax. If we assume another 33 of travel days allocated to taxable states –purely a shot-in-the-dark estimate — and 5 playoff games located in taxable jurisdictions, we get a total allocation of duty days of 71/270, meaning 26.2% of Howard’s total earnings of $87.6 million over the life of his contract – or $23.0 million — will be subject to state income tax. At an average rate of 5%, Howard will pay approximately $1,400,000 of state income tax over the four year period.
This means that by signing with the Houston Rockets, Howard could save approximately $14.3 million ($15,700,000 less $1,400,000) in state income taxes on his next contract. While that doesn’t make up the full $30,000,000 gross difference, it certainly eases the pain, and may be enough to convince Howard to flee for what he perceives to be a better basketball situation.
There is , however, one more reality that must be dealt with that makes a move to Houston appear even more attractive. While the Lakers can offer a fifth year that no other team can match, that fifth year will be a player option. And because Howard will be 31 at the beginning of a potential fifth year, he would likely opt out and go after one more max contract. In fact, the only way Howard is likely to ever play a fifth year in L.A. is if he is so broken down or his game so diminished that he couldn’t command more on the free agent market five years from now than the salary provided for in the final year of his Lakers contract.
This means we can actually compare apples to apples: What would Howard earn in four years in Houston versus the four years he’s likely to spend in L.A.?
The Lakers, by virtue of being able to give annual raises in excess of what Houston can offer, would still offer a larger gross payday: $91 million versus $87.6 million for Houston. But with the difference now reduced to $3 million, the state tax impact becomes magnified. Howard would pay nearly $12 million in California tax over the four years if he signs with the Lakers, but only $1,400,000 in state tax should he sign with Houston. This means that a four-year deal with Houston would actually yield an additional $7 million in after-tax income. -
Source, Forbes Magazine.
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