Your tax situation could be much worse: The NBA
I don't know if it's true for all professional athletes and performers, but Mark Cuban, in his BlogMaverick weblog, writes about the NBA Dress Code, which is reasonable since he's the owner of the Mavericks basketball team. But in that message he notes:
"First. There is no question, that even at the minimum salary, NBA rookies and 1st year players are blessed to be earning that much money. However, realize that about 55 pct comes off the top for taxes (they have to pay taxes in ever state we play in), agent and union dues, and NBA Escrow. "
I'm aghast. professional basketball players have to pay taxes in every state that they play?
As a professional speaker, I am now curious whether technically I'm supposed to pay state tax in each state where I've given a paid talk?
In 2005 I've been in at least five states making paid presentations, and someone who really travels nonstop like Tom Peters would probably end up filing taxes in at least 30 different states in the US, along with dozens of other nations.
It's hard to imagine how this is fair anyway. A basketball player has a state of residence and certainly doesn't stay in another other individual state for more than 3-4 weeks, so how can states have a claim on those wages?
But I can't imagine that Mark Cuban is wrong, so we have to assume that this amazing scene is true. All I can say is, I'd rather be their accountant!
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