there are 12 states who currently tax players who play games in their state while members of other teams
started in Philly a decade ago
Actually, 20 out of the 24 states with pro sports teams have a "jock tax". The only pro states without one are Washington, Texas, Tennessee, and Florida - after TN's goes into effect, it will be 21 out of 24.
And the Jock tax started with CA in 1991. The CA FTB decided it wanted to tax Michale Jordan after the Bulls/Lakers finals. IL responded the next year by reciprocally taxing visiting athletes from states which had a "Jock Tax".
And a NHL or NBA athlete can choose not to play in that particular state. I guess the Jock Tax is a red herring as well.
How exactly can they choose not to play in that state? To do that you would have to choose not to play in the NHL at all.
If you are under contract to play for a team and that team plays in TN...you are contractually obligated to play in TN, and from what it seems even if you don't play in TN at all that year...if your team does you still have to pay. You could not set foot in TN all year and still have to pay taxes because your employer played games there.
Comparing a sales tax to a form of an income tax is pretty strange. Buying a coffee compared to having money taken from your income....slightly different.
What I don't get is how TN can cherry pick the NBA and NHL...and then dictate that if a player is on the parent club for 10 days they have to retro-pay for games that team played in TN even if that player wasn't involved.
If you don't "perform your job" in that State...how can they tax your income on the days your employer had other employees working in that state? It would be like taxing every employee of General Motors because 3 engineers went to TN and earned income there for a few a week.
The whole thing seems pretty odd, if a tax like this is necessary...athletes should be taxed when they work in the state...period. I don't care if you are an NHL athlete or an NFL athlete...I don't care if you are in the AHL or in some professional table tennis league. Athletes that are paid to perform in the state but don't live in the state should all be taxed the same.
Also, the big beef here is that the tax is not deductible, right? Seems like that's a problem with the player's local or federal govt. I'm sure TN isn't intentionally making it non-deductible. We just don't have an income tax. Shouldn't the players effected fight their local govt. to have it recognized as an income tax. After all, that's essentially what it is.
Not deductible as tax but deductible as cost of doing business?
I'm sure if there's a way to look for example Rafalski's income tax return, it has a $7500 deduction.
The question of whether or not it's deductible in and of itself is a very interesting constitutional query. Thankfully, that's not my field. The result would be a 935 page court opinion after 4 or 5 years of deliberations
Although I do find the retroactive games clause a bit strange and the NFL exemption just basically unfair the players have nothing to complain about in regards to paying these taxes. If you were subtract from the players paycheque the amount of money that is a direct result of taxpayers paying billions of dollars on building sports stadiums in the last 20 years it would be a greater sum than what the jock tax is taking.
Excessive taxation is something to complain about but an industry build on hordes of government money has no right to complain about high taxes.