ShootingtheJ wrote:LuessiT wrote:slos wrote:I'm not expecting much moving forward. Extend Jrue and we are good to go. I know this will be an unpopular opinion, but if Jrue signs an extension I think Horst should make some moves to avoid the tax.
Jrue/DDV/Midds/Giannis/Brook and Augustin/Merrill/Connaughton/Nwora/#30 will cost 147 mil in 2021-22. Bucks should be wiser to avoid the repeated tax so early. At least not for players like Pat or Wilson.
Yes this should be the goal if it doesn't harm our chances to win a title.
Please explain the perils of the repeater tax. This is new territory for us.
Team salary above tax level Non-repeater Repeater
Lower Upper Tax rate Incremental maximum Tax rate Incremental maximum
$0 $4,999,999 $1.50 $7.5 million $2.50 $12.5 million
$5,000,000 $9,999,999 $1.75 $8.75 million $2.75 $13.75 million
$10,000,000 $14,999,999 $2.50 $12.5 million $3.50 $17.5 million
$15,000,000 $19,999,999 $3.25 $16.25 million $4.25 $21.25 million
$20,000,000 N/A $3.75, and increasing $.50 for each additional $5 million N/A $4.75, and increasing $.50 for
each additional $5 million N/A
The repeater tax rate is triggered if you've already paid tax in the year before and is basically 1$ for every $ above the luxury tax line you spend. So the difference between paying the tax the first time this year or next year is the savings this year plus whatever we'll be over the tax line next year. Dodging the tax this year could easily be $20m+ in savings.