LeBron’s Taxing Decision

Mike Brownfield / July 09, 2010

What would it take to lure basketball star LeBron James away from his hometown Cleveland Cavaliers to sign a contract with the Miami Heat? Believe it or not, taxes might have something to do with it, and that’s an important message for all levels of government.

In Florida, James’ new place of business, there is no income tax, and the superstar will see a big benefit in his bottom line for playing ball in a Heat jersey. James will make $1.014 million more in Miami than in Cleveland over the first five years of his contract, all as a result of differences in tax rates. (He would have paid $12.34 million in taxes over five years if he played with the Nets or the Knicks.)

But the economic impact of James’ decision does not begin and end with LeBron James. (more…)