Quote Originally Posted by bowlslit:
If we're talking state taxes and federal taxes the system doesn't make sense to me.
Lets say for the sake of argument that WA state has a state income tax. Under the new schedule format the Padres will play 2-4 games in WA vs the Mariners. Since he is a SP on the rotation he likely will pitch in no more than one of those games. Yet he would pay state taxes as if he played in all games like he was a starting position player.
Because he makes so much money he will likely pay more in WA state taxes than 20 people that live there year round and use state resources and infrastructure year round.
Thank you in advance for acknowledging that I bring up some excellent points.
I have yet to hear a pro athlete retire due to excessive tax rates or their disagreement with the tax structures athletes face. If you know of one, I'm more than interested to hear their stories behind their decisions.
It's not like the tax structure became complicated because of James Shields contract. Every athlete faces similar complications. You chose to pick Shields contract as a talking point because it's recent and probably because he signed in California. Due to him signing in California he faces a higher state income tax than had he signed somewhere else. Your latest argument is irrelevant because his tax structure would be the same wherever he played, with the only difference being state income tax.
When I brought up the points about him signing in San Diego due to reasons that weren't necessarily financial (proximity to family, weather, direction of team, etc) you said your argument was about federal taxes. When it was pointed out that federal tax liabilities are the same for all athletes you know turned in the direction of the complexity of the tax code.
I don't think anyone disagrees with you that the tax code and regulations are ridiculously absurd and complicated.
Your claim that James Shields, and James Shields alone, is getting screwed by taxes, and your reasoning behind it, is flawed. You're all over the map with your arguments. The evidence you use to support your claims are weak at best.
Face it, it's tough to be "screwed by taxes" when you voluntarily sign a contract that pays you millions. Especially when you had other options to pay less in taxes. He voluntarily signed up to pay more in state taxes to be closer to his family. It's called "Marginal Rate of Substitution," with one good being happiness and the other being money. Considering he still makes more in absolute terms than the other offers he was reported to have, I think it's safe to say he maxed out his utility on this one. Tough to be screwed when that happens.
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