LeBron James - Follow the Taxes

I couldn't care less about the NBA or the endocrinology-challenged denizens of that league, but LeBron James' free-agent decision today will be big news.  Will he stay in Cleveland (fat chance), or go to New York or Miami?  Rumors are now swirling that Miami will get the bid, and although I don't expect to hear him actually say it, I have to believe the absence of a state income tax in Florida will be the deciding factor.

New York State is in deep, deep trouble, and they are constantly proposing and implementing new taxes on the rich.  It would be financially foolish for James to go to New York because even though he may make more gross income in Big Apple, his tax burden will be staggering.  Not only will have face confiscatory state taxes, but New York City hammers their residents with a local city income taxes as well.

There's a reason people like Rush Limbaugh and Tiger Woods live in Florida.

UPDATE:  Someone did the math:

The tax savings for James in Miami over New York City would be staggering, according to the Post’s analysis.

“On a five-year contract worth $96 million -- what he'd get from the Knicks or the Heat -- LeBron would pay $12.34 million in New York taxes.” Florida has no state income tax.

New Jersey and Ohio, the other reported frontrunners to attract James, also have state income taxes, but they are not as his as in New York. Based on a $96 million contract, James would pay $5.69 million in state taxes if he re-signed with the Cleveland Cavaliers. If he signed with the New Jersey Nets, James would pay $10.32 million in state taxes.

New York will have a hard time attracting big money talent in the future with their tax rates.