Taxing Athletes: Fair?

" I'm the talk about tax bill Aaron the director of policy and communications at a Tax Foundation joins us now from Washington DC. The jock tax I have to tell. I did taxes or like five years and never heard of this it makes perfect sense to me. But I never heard of this so it's really intriguing to me that they're coming down on athletes. Mainly because they're schedules -- public so we all know where they are it's very hard to. You know they can't hide it. Right wealthy people it's very easy for them to you know pretend they weren't in New York City for the day when really they want our. She got athletes who are making many other states and they're getting taxed now in these states."

" Yes every -- have -- pro athlete and all the people who work with them. Should be very keenly aware that they are being discriminated against there being taxed. Much more heavily than high income executives or other people who also travel for their work."

" I just feel like question of the -- are being taxed more heavily because. You know what I think 100% in my state tax in the state -- work part time here in the State of New York Apple might gains in the other half -- all in different states around the country would not pay less taxes in new York and when that -- watch."

" Well now for example you'd go to California which has a higher. Tax rate and a New York would only grant you a credit for the amount that you would have paid if you were in New York know it creates. Situation where the states. With the highest tax rates are the winners. And get a little extra revenue even though their own athletes have to pay jock taxes when they trap. And so and the states with the biggest losers are the ones that have no. Individual income tax whether it's Texas or Tennessee or Washington State or Florida. Athletes and those locations. Who really ought to be paying no wage tax at all. Are traveling and paying wherever they go. And their own state isn't getting anything out of the athlete who visit there. And it's not just athletes it's everyone who travels --"

" Breaks it down to the trainers in the all reasonable boys who don't make a whole lot of money what's interesting to me is that this started in 1991 in the Chicago -- Beat the LA lakers in California California woke up and said. Can't believe we lost but we model makes good money."

" Yes that's right yeah it was it was one of the few times that I that I. That it team has been swept at home like that the that the visiting bulls took games three through five and LA. And took the lakers out and -- happy. The retaliation. The tax collectors there in that California decided that they were going to. It attacks the bulls and Jordan for the for the for the day is that they were in Los Angeles -- in Los Angeles and then. Of course Illinois got all bent out of shape and passed a retaliatory measure that they called Michael Jordan's revenge. Although the real revenge was to come in later years says Jordan and the bulls continued to my -- and -- but. And ever since then and then in the actually since it was a retaliatory. Sort of situation no state could. Let California tax there visiting athletes and not tax them back. So it spread like wildfire and now every. Employee of every traveling franchise have to file income taxes in every state they visit. 1520. Tax returns per year and as you pointed out in many cases it is like a wash. The Yankees Philly series for example they. The Yankees said that the visiting Philly is would have been paying about a seven or 8% tax rate in New York. And asked who would then the visiting yankees would have been paying only a 3% to Pennsylvania. Both cities Philly and New York have their own city leveled dot taxes they have about 4%. So this can get ridiculously complicated."

" Bill one of our viewers via -- says I'm nobody I'm getting taxed to death don't sell yourself -- somebody out there. All but the question is does this also had to be hard to find people to feel sorry for Michael Jordan of the professional athletes and making hundreds of millions of dollars. But doesn't supply and it's -- fine thank you city trainers who did not make a lot of money and the truck drivers is well."

" It it it can be applied. Eight the reason it's that right now the employee is below the middle income employees of sports franchises are being being. -- because there with the athletes and their published schedules are known by them. But truck drivers and other traveling salesman and other businessmen they're schedules aren't published as you said in the lead in so. As the tax collectors just don't have that information so it it results in an unfair taxation of athletes and their colleagues just because. The travel schedule is published that that is not fair and he and it's not just. A high income low income situation too I mean there are a lot of consider that athletes make fantastic. Wages during a few years that they're working but the average. Athletes. Career is only five or six years of fantastic earnings and after that it's often you know high school high school Coach."

" Right on the and I guess he's not traveling as much we got a comment from Matt Reilly -- so let me get this straight we cannot purchase health insurance across state lines. But we can tax that appear at out of every job that visits each state. This is crazy. It is crazy and you would think that you get some like me -- just say we spent every game here. Nick liked all the say -- this Fiat money -- is here."

" That's a good connection to the help that you do because these high wage earners are getting ready to pay so much higher taxes anyway. Starting in 2011. Their top tax rate is going to go up from 35 to forty and then the health surtax might add another take it up the fifty. To 45 so. These 10910. And 11% income tax. Rates at the state level in California and New Jersey have some of the other I."

" I know bill I pay in Jersey it's awful this that this this is great I mean and it's unfortunate that Apple athletes. Thanks Billy appreciated lots aware -- for the."