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Von Aldo

In Miami, LeBron Pays No State Income Tax for Home Games

Do you think Florida's tax-friendly orientation had anything to do with LeBron's choice of cities? Ohio is a high-tax state. Consider this tax analysis by The Tax Foundation, put out before LeBron James announced his decision last night to play in Miami.

The non-partisan Tax Foundation writes: "How does this work out for LeBron if he chooses to play in either Miami or Cleveland? First let's consider all of his 41 home games in either city. Because Florida has no income tax, LeBron's home game income tax liability is zero. On the other hand, were LeBron to play in Cleveland, he would pay Ohio's progressive tax with a top rate of 5.925% plus Cleveland's flat income rate of 2% on all 41 home games. On LeBron's Cleveland salary of about $244,000 a game, LeBron would be paying $9,900 in tax on each game he plays for the Cavaliers, compared to zero playing for Miami. In other words, James would be losing almost all of his salary advantage for playing with Cleveland, and that is only for half of his games."

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