What Happens When California Loses All of Its Athletes?

Sorry about all the typos.

Not a problem on the typos. No, it won't make him middle class but all of his money comes from private income sources. Thus, it doesn't how much money he makes in regards to everyone else. The fact that the tax rate is that high should scare you because tax rates could easily raise for everybody. Once the "rich athletes" leave, the pool of income that California can draw from is significantly smaller. This isn't looking at the loss of income for businesses in a number of industries. So, his leaving will have an impact on California's economy. If enough of these athletes decide to leave (this is a billion dollar industry), then California will become so bottom heavy that its only choice left is a major tax increase on the middle class along with a huge reduction in Government benefits/pensions. While you may not personally support athletes, the fact remains that they do have a huge financial influence on a State's economics. France will soon have the same problem. A reduction in the number of "rich" and even with the new taxes, they may find themselves collecting far less than they anticipated and might even actually lose revenue.

Income tax itself is the corporate tax for big businesses. We sometimes use the terms interchangeably. Most of those companies pay taxes in another state and not where they are actually located. They take advantage of a loophole that exists in the state's law. For instance, Apple has its investment section in Nevada, the state where corporate tax is absent. This is allowing them to avoid paying anything to California. The entire America is losing trillions of dollars in tax because of these companies.

Easy to figure out where they aren't going. Sure, they talk a big game but when it comes to actually paying, that's a whole different story.

Ironically, States are offering incentives to get movies in their area. This is how you avoid taxes without looking like you avoid taxes.

Yet, these are the same people who claim that raising taxes have no real effect on the economy and that the rich will gladly pay a little extra. This is of course ignoring the fact that the rich will pay less for a luxury item if they find it cheaper overseas.

Florida has beaches and Key West. Plus, the weather to play nearly all year round (except maybe February). It also has golf courses, football, basketball, and soccer. But absolutely no State income tax. That might look pretty good when compared to over 50% with California. But you could be right, there maybe something in there that would allow him to circumvent the tax. From what I understand, there is a corporation loophole where some corporations are paying zero taxes and some are getting a refund.

Believe me , my friend! Millionaire athelets are very smart people, they known most of the hook and loop in the tax book if not all to protect their wealth from tax-man. Many of them have personal accountants and banks out there to take care of all these for them, other than their team owner. Some are making so much that 50% tax bill can not even make a dent in their already extremely high income and contract.