December 10, 2010

WHICH IS WHY LEBRON ENDED UP IN FL:

Taxing decision for Lee (Scott Beaman, 12/10/10, ESPN)

One of the myriad of reasons that Texas may appeal more to Cliff Lee than New York is the tax scenario. [...]

If Lee lived in New York City, he would pay 12.618 percent of his salary to state (8.97 percent) and city (3.648 percent) income taxes (based upon the 2010 tax rates). Presuming that held steady, that would amount to $17.67 million on his total contract.

Thus, a six-year/$123 million contract with the Rangers would be more valuable to Cliff Lee than a six-year/$140 million contract with the Yankees, since there are no state or city taxes in Texas.

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Posted by Orrin Judd at December 10, 2010 5:14 PM
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