The tax penalties in the new CBA are much stronger than I thought.
Page 184 I think if you want to check it out.
Article VII 183
(i) Standard Tax Rates:
$0 – 100% of Tax Bracket Amount
2023+24 $1.50-for-$1
2025+ $1.00-for-$1
100%–200% of Tax Bracket Amount
2023-24 $1.75-for-$1
2025+ $1.25-for-$1
200% –300% of Tax Bracket Amount
2023-24 $2.50-for-$1
2025+ $3.50-for-$1
300% –400% of Tax Bracket Amount
2023-24 $3.25-for-$1
2025+ $4.75-for-$1
400% of Tax Bracket Amount and Over
Tax rates increase by
$0.50 for each
additional 100% of
Tax Bracket Amount
above the Tax Level
Each "tax bracket" starts at 5 mil over the tax.
So after 20 million you are in the 5th bracket.
It raises along with the cap, so next year would be every 5.5 million with a penalty of 3.75 to 1 for everything 20-25 million over.
Interesting the penalty comparisons between 2025 and later and 2023/24 seasons invert over time, making it less painful early and more painful the higher you go.
And these are the standard rates.
The repeater penalties (starting at 3 times in 4 years) are much harsher.
The first 22 million next summer would cost 49.5 million and the next 11 million in salary would cost another 40 million.
The next 11 million after that would cost 50 million in tax.
