gom wrote:As I posted before, these salaries work:
Whiteside: 4/89,000,000
Wade: 3/40,856,993
Deng: 3/31,927,150
Sign Joe for the Room Exception: $2.898 million
One question that comes up is why would Whiteside play for a starting salary of $20,000,000 (which is 4/89) rather than $21,564,143 to which he is entitled. That's where "jock tax" comes into play. Jock tax is essentially the state tax paid when you earn money by performing in a state. For example, California has a 13.3% state tax rather than Florida's 0% state tax. If Hassan spent 100% of his 170 NBA working days in California (Lakers for example), his $21,564,143 would become $18,696,112, which is significantly less than the $20,000,000 the Heat could pay. On the other hand, Jock Tax is not that simple. Some states charge athletes from other states when they perform in their state, so $20,000,000 is *never* $20,000,000. For at least 8 games a year (or 8/170 of their salary), Heat players must pay California taxes.
California: 13.3% (Clippers, Warriors, Kings, Lakers)
Oregon: 9.9% (Portland Trailblazers)
Minnesota: 9.85% (Timberwolves)
DC: 8.95% (Wizards)
New York: 8.82% (Knicks, Nets)
Wisconsin: 7.65% (Bucks)
Louisiana: 6% (Pelicans)
Georgia: 6% (Hawks)
North Carolina: 5.75% (Hornets)
Ohio: 5.39% (Cavaliers)
Oklahoma: 5.25% (Thunder)
Massachusetts: 5.15% (Celtics)
Utah: 5% (Utah Jazz)
Colorado: 4.63 (Denver Nuggets)
Arizona: 4.54% (Phoenix Suns)
Michigan: 4.25% (Pistons)
Illinois: 3.75% (Bulls)
Indiana: 3.3% (Pacers)
Pennsylvania: 3.07% (76ers)
Florida: Heat, Magic
Texas: Spurs, Mavericks, Rockets
Tennessee: Grizzlies
Raptors: Canadian tax
I could see Hassan taking that kind of deal to help Miami with a player opt-out after year 2 IF he really wants to stay. He will get a bigger offer somewhere else for sure so Miami's biggest sale pitch is the 7.5% yearly raises. Dallas and Houston (two likely Hassan bidders) can use the "State Tax" card as well.
At the end, we are talking about Wade accepting a $13 a year deal (average) to make this work. Will he do that after the season he just had? Does Miami even attempts to bring that up to him? Would a 4th year make it more acceptable since it would take him into his 38th birthday?