Jock tax 2023

Great professional athletes make a lot of money. Did you know that professional athletes have to pay an amazing amount of federal, state, and sometimes even city tax? Grant Williams, a Boston Celtic forward, was recently offered 48 million to stay in Boston but he opted to move to Texas and play with the Dallas Mavericks with their state tax rate of 0%. The state tax rates in Washington, Florida and Texas are 0%.  Basketball star DeAndre Jordan made news when he walked away from a verbal agreement with the Dallas Mavericks for $80 million over 4 years to return to the L.A. Clippers for $88 million over 4 years.  Considering California has a state tax rate of 13.3% and Texas has a 0% state tax rate which deal would have made him more money after state taxes?  

In this activity students consider the remarkable differences in state taxes that high paid pro athletes have to pay. Students determine how much more money an athlete should be paid in a high tax state in order to offset the taxes. You might also consider showing part of this news clip that highlights the state tax story to you class. This activity could make for some great math and social studies discussions.  Is this fair to teams that play in high tax states?