by Richard Rider UPDATED: November, 2014
In 2011 the Dallas Mavericks beat the Miami Heat for the NBA title. The next year the upstart Oklahoma Thunder lost to the Miami Heat in the NBA finals. In 2013 the Miami Heat repeated, defeating the aging San Antonio Spurs. In 2014 the Spurs avenged their loss from the previous year, beating the Heat in the finals.
What did these VERY different teams have in common? With the exception of the Thunder, all the finalists are “housed” in states with zero state income tax! Moreover, Oklahoma’s top state income tax is a rather modest 5.25% — and there are proposals to further lower this top OK tax bracket.
Coincidence? Maybe. Was this factor the ONLY reason these teams made it to the finals? Definitely not!
But because of a little-known change in the 2013 federal income tax law, this match-up of low/no tax income state finalists in pro sports playoffs may become more and more common. This change is particularly bad news for California sports fans.
State income taxes has always been a consideration for the truly wealthy. But starting in 2013, for income above $2 million, it gets… Read More