How about Texas, Florida, and Tennessee?
Florida has no state income tax.
Yeah I know that none of these states have state income tax, as does Alaska ( noted below). I'm not sure that these facts really means anything with regards to recruiting NIL.
Sure it does... it gives a large advantage to Florida and Texas, vs a high tax state like California... if its all about the money payment, then of course it means something.
Except it doesn't because there's nothing stopping whoever's offering the NIL deal in California from offering more to make up the difference.
So, a CA school has to offer xx% more than some other state with a smaller income tax to pay the player the same amount of money.
In what world is that not a disadvantage? The world where that is true is one where money has value to the recruit but no value to the school. That seems...not real.
Sure it's a disadvantage for whoever is paying but the premise in the OP and the discussion are that it's a disadvantage for the player.
But when they do pay more to make up the difference, that additional income becomes taxable too doesn’t it?
They can calculate the increment in remuneration and the corresponding increment in taxes and pay an amount that will be tax-neutral to the recipient. It's a common practice to incentivize/remunerate people to go abroad or take on difficult assignments.
In accounting it's called grossing up. It's where you pay extra up to the amount necessary to cover the additional taxes (including the additional taxes on top of the additional amount to cover the taxes). It's not an unusual thing and businesses do it for employees they want occasionally.
Not sure why this is such a hard concept to understand.
Hopefully there are no discussions about state income tax and state sales tax or shielding income with tax deferred instruments.
first post in years and it is a double.
Not a hard choice about where to go to school.
4%-6% less in taxes in those three states or have your girlfriend/whoever she might be forced to give birth if she accidentally gets pregnant and you pay child support for 18 years? I'll take the slightly higher taxes.
have your girlfriend/whoever she might be forced to give birth
im pro-choice and not real happy with what the Supreme Court did but that's silly and not how this works. it isn't illegal, just pushed back to the states. example: abortion is still legal in illinois. can still drive from illegal state (indiana) to a legal state (illinois) and get an abortion. to help tie this back into your point ... the 4-6% extra could help with that.
Open question here: for states like Texas where you can sue individuals/businesses that support "aid or abet" someone getting an abortion out of state, could the player be sued for helping support it. What about parents if the car the child drives is in the parents' name?
as i am a toxicologist, not a lawyer, i can only reply with
"it's america, you can be sued for just about anything"
but im pretty sure if the student athlete (NIL earner) and their girlfriend both decide an abortion is right for them, not sure who would be suing them over it.
In Texas, it could be anybody with the knowledge of their decision.
btw, it's not always easy for folks who decide to get an abortion to travel to another state for that. Most choose abortion (as per most literature/data) due to extant financial strain. That would make it difficult to travel. For certain portions of Texas, one has to drive 200 miles just to get to the nearest big city.
Anyway, my intention is not to stir up debate, especially on abortion.
i am sure for some it isn't easy. even for people in states with legal abortion, the choice to get one or not isn't easy, regardless of their financial status. but a vast majority of life isn't easy.
they have a decision to make then. find a way to get to a clinic or have a baby.
anyhoo, i think your point goes out the window or this particular discussion since we're discussing nil receiving athletes who can, presumably, afford a 6 hour car ride there and back.
Agree.
wtf are you talking about???
trying to mush highly divisive personal issue into a thread about college football to because .... politics?? .... i guess
So welcome to the world of having a (legal) income?
WTF is the point of this post?
My thoughts exactly. Clearly, this is a huge factor, which is why CA is so under-populated.
Well, 100,000 people decided to move from CA this year AND last....so...wonder which factors were the hugest? /s
as someone who lived in cali for 5.5 years, the one thing cali taught me is never to live in cali
Do you have a solid source for this? Earlier this year I read that the net inflow/outflow from CA matches what it has been for the last 10 years.
Alaska is going to kick ass.
Wyoming, baby! In the lower 48 and low cost of living - gonna kill it
are these write-offs for the donors?
Do I know what write-offs are?
No, but they do, and they're the ones writing it off!!
Can't tell for sure if serious so just inb case you are typically these transactions would be considered a marketing expense and will be written off as such
Tremendous Seinfeld reference. +1
There's no "salary cap" in NIL so this is a moot point. If someone from a no income tax state is offer $XXX,XXX then someone from a state with tax can offer the same and "gross it up."
states have different taxes. Story at 11
same as in real life. yet people choose to live and work in all these places. so.. impact minimal i would think.
If I were advising a recruit, I'd at least make sure he was aware. Especially if these deals are really getting up to $8MM or whatever that Miami kid got. That's a significant tax difference between Miami and say UCLA.
i get that. but ill take that UCLA degree 11 times a week and 42 times on Sunday.
Nothing like a B10 education!!! :D
and yes, most of these guys arent worried about a degree
Some of the people running for governor are pushing to eliminate the state income tax in Michigan. This could help us recruit.
Do they intend to support infrastructure through tourism?
based on the current situation with roads, sidewalks, bridges, flint water, midland dams ... i doubt they intend to support infrastructure. they haven't, at least seriously, in a long time.
too busy trying to find out how to use the money intended or those things to line their pockets.
Just a point of negotiation. This NIL will pay $X, and the payor will be responsible for paying taxes associated with it or sufficiently increase the amount to cover taxes.
I am sure there are tax experts who will help with the process so one pays the minimal. Ex: resident or non-resident. How the money is funneled will have an impact. But, this is nothing new. Happens to many of us who live in one state and work in another.
Does it matter where the student is a resident? Given that most still live at home when not at school.
Does it matter where the NIL collective is headquartered? What if they do the deal for the N, I, or L of a kid in a state that doesn’t have tax? Technically the kid is working there right?
So SURE all the athletes will be skipping out on California now that they know about that 13 pct. income tax!
Curious with some of these deals that kids are getting, are they getting any assistance, whether from the deal provider, a booster, or the school itself, on how to actually file those taxes? I know I didn't know how to do that when I was their age.
If not, I'm sure a lot of these kids will eventually be in some kind of trouble when the IRS comes knocking at their door to perform an audit.
Guessing the schools are at least giving the players a list of tax professionals. Just a guess though. I think they'd prefer to not have their productive assets in jail for tax evasion/fraud.
their agents usually take care of getting the tax accountant..... I wonder how many sports agents are going to be getting involved in the NIL world..... getting those athletes before they could get away with it before
Yeah, NIL agents are a thing apparently so for those that use them that's probably who will help take care of it.
Well that's the thing about agents: I thought when it came to college sports, the minute you hired an agent, you forgo any remaining eligibility. Obviously we're in a brave new world now with NIL, but can you hire an agent strictly for NIL while retaining your collegiate eligibility? I honestly don't know.