Flacco is "technically" the 2nd-highest paid NFL player when taking into account...

[KidSampson]

He has to pay taxes to the state where the money is earned. He then gets a credit for that amount from the state that he is a resident of. Pro athletes actually have to file returns for every state they play a game in.

The term 'Jock Tax' is a misnomer. Technically anyone who earns money in a state is supposed to file taxes in that state. For example, if you are a salesman who travels, you are supposed to file taxes for each state in which you make a sale. However, for most of the population the tax money that that state would receive is not enough to merit going after (i.e. it would cost more to try to collect than what they would collect).

[HoustonRaven]

The term 'Jock Tax' is a misnomer. Technically anyone who earns money in a state is supposed to file taxes in that state. For example, if you are a salesman who travels, you are supposed to file taxes for each state in which you make a sale. However, for most of the population the tax money that that state would receive is not enough to merit going after (i.e. it would cost more to try to collect than what they would collect).

I'd hardly call it a misnomer ....

http://taxfoundation.org/tax-topics/jock-taxes

[KidSampson]

I'd hardly call it a misnomer ....

http://taxfoundation.org/tax-topics/jock-taxes

It's a misnomer in the sense that it leads people to believe that these rules only apply to 'jocks'.

[GOTA]

The term 'Jock Tax' is a misnomer. Technically anyone who earns money in a state is supposed to file taxes in that state. For example, if you are a salesman who travels, you are supposed to file taxes for each state in which you make a sale. However, for most of the population the tax money that that state would receive is not enough to merit going after (i.e. it would cost more to try to collect than what they would collect).

That's exactly it. I've seen states go after other professions as well. PA is especially aggressive. Even Philly is pain in the ass. They are much worse than NYC.

[Coastergenius]

And I just want to point out an error in the thread title. "Technically" he's still the highest paid player in the league. It's just that his take home pay is only the second highest in the league.

Come to think of it, that's something that the CBA should have thought of with the cap. They should have made allowances to adjust cap figures by the state's income tax rates. Allow the excess that players pay for being in a more heavily taxed state compared to the minimum that they would pay be a credit on the cap.

[Mista T]

The Eastern Shore and Western MD are red. Although some argue that the Eastern Shore should be its own state anyway.

If the Eastern Shore were to secede from the People's Republic of Maryland: count me in! I'd even swim across the Chesapeake Bay to get there.

Didn't read the fine detail of how they come up with this ranking but it sure seems inaccurate to me.

Living in TN there is no state tax but I am hit with city tax (don't live in the city) county tax, I pay city school and county school tax but have no kids that go there, it goes on and on. Nothing to do with liberal IMO because there is nowhere on earth more conservative than this place.

Don't understand your complaint. When we lived in Huntsville, Alabama, our State income tax dropped to about 1/4th of the pre-O'Malley rates that we now suffer. Yet about half my workforce lived in Tennessee, commuting south to Huntsville, typically to avoid the "high" Alabama taxes. We have friends who moved north from Huntsville to rural Tennessee, halfway to Nashville and near the Jack Daniels distillery, who pay virtually no state taxes outside of low sales and property taxes

[wickedsolo]

This is why a lot of pro athletes love in Florida.

No income tax.

Sent from my DROID X2 using Forum Runner

[ballhawk]

If the Eastern Shore were to secede from the People's Republic of Maryland: count me in!

As an ES resident, I concur.

[CincyCat]

I heard this today and it floored me. This sucks! 52%? Come on Maryland.

http://www.usatoday.com/story/gameon...taxes/1972931/

[alienrace]

If the Eastern Shore were to secede from the People's Republic of Maryland: count me in! I'd even swim across the Chesapeake Bay to get there.

Sounds kinda farfetched, but I would not be surprised if Maryland disintengrated within the next decade or sooner, depending on how much more O'Malley disenfranchises a large portion of the geographical region of the state. There is already talk in Carroll County and others about seceding from Maryland to either be annexed by PA or form a new state.

[BMann]

Interesting observation: When Ehrlich was governor, I don't recall hearing any "we should secede!" talk from Central Marylanders.

[AirFlacco]

In that case, Tennessee could make a killing on free agents. They are one of the lowest taxed states.

So look out world, here come the Titans!

No? I think other factors are going to keep outweighing taxes.

Florida is the other state for no income taxes. That's why Labron James went there instead of NY. He saved millions in income taxes and NY fans were pissed because Labron wanted to go there. I'll be moving to my condo in Daytona when my mom dies to escape high taxes here.

These states mentioned are favorite places for retirees to move to.

[AirFlacco]

...his taxes!

When adding in Maryland's state and local Baltimore County tax rates, he will earn less than Drew Brees who pays less in Louisiana taxes.



http://www.atr.org/tax-bite-leaves-f...ond-best-a7506

I've always been surprised someone like Jerry Jones doesn't tout Texas' low taxes when trying to woo potential free agents?!? Maybe the NFL doesn't allow that as some of the East Coast teams (especially the Giants, Jets, and New England) have some of the highest taxes rates' in the country.

But his gross pay, which is what IRS goes by is sitll higher, so he's still #1.

[Terpsfan82]

Politics? Here? C'mon guys I know it's slow but........

[iggyman555]

He has to pay taxes to the state where the money is earned. He then gets a credit for that amount from the state that he is a resident of. Pro athletes actually have to file returns for every state they play a game in.

do they file uk taxes for games played there?

[GOTA]

do they file uk taxes for games played there?

I'm not sure how that works. I never had to deal with that one. Usually though if you are an American citizen, work for an American company and are working abroad for a short period of time, like 1 game, then you would not owe tax to that other country. You would still owe federal tax. I would guess you could make an argument that since it is income sourced from a particular state that the state can't tax it. That's just a guess though because I really haven't had any experience with that situation. I'm sure someone like Tom Brady who makes a ton of money and plays in the UK a lot is doing whatever he can to keep the greedy hands of MA away from that income.

[alienrace]

Interesting observation: When Ehrlich was governor, I don't recall hearing any "we should secede!" talk from Central Marylanders.

1) Ehrlich didn't disenfranchise Central Maryland by gerrymandering the districts for obvious political gain.

2) Aside from Ehrlich the rest of Annapolis was decidedly Democrat, so it's not like Central Maryland didn't have a voice or people looking out for their interests.

[Terpsfan82]

1) Ehrlich didn't disenfranchise Central Maryland by gerrymandering the districts for obvious political gain.

2) Aside from Ehrlich the rest of Annapolis was decidedly Democrat, so it's not like Central Maryland didn't have a voice or people looking out for their interests.

Gerrymandering happens all over the country. The party in power manipulates geographic boundaries in an effort to remain in power. System sucks, but that's the way it is.

[Terpsfan82]

Interesting observation: When Ehrlich was governor, I don't recall hearing any "we should secede!" talk from Central Marylanders.

Me either. I also didn't see a mad rush on gun stores. Have you tried to buy ammo lately? It's crazy.

[Tyrian]

do they file uk taxes for games played there?

Usually, the UK taxes 50% on appearances and prize money as well as a slice of all sponsorship money (which is why some sportsmen, like Usain Bolt, won't come here) dependent on things like training days (the law got amended in 2012 to make it more palatable, though - now it is days training/playing in UK / days training elsewhere - it's probably a negligable rate now of maybe 1% considering NFL players are usually here for less than a week?).

But, In difference to say tennis players and athletes, NFL players have contracts rather than appearance fees, thus a much lower tax liability.

I don't know if any of this is covered within the double taxation agreement, I'm suspecting that the amounts earned would breach any limits. Might be $20,000 or something - depending on exchange rates at the time for pounds.

Travelling 'entertainers' and 'sportsmen' are also eligible for a personal allowance similar to that enjoyed by UK citizens on taxable income, I think. Thus, depending on the tax rate of this income (I'm presuming it'll be the additional rate due to levels of income even if not accrued in this country, which is currently 50%, but set to fall to 45% from next month). It's possible that some of this falls within this bracket.

It's also possible that the international series is subject to tax exemption as well, like the Champions League Final, whenever held at Wembley, and the 2012 Olympics was.