Saturday, November 24, 2012
Free Agents Front-Loading To Avoid 2013 Taxes
Players and agents are demanding front-loaded contracts to avoid what will inevitably be higher taxes in 2013. On Jan. 1, the Medicare tax goes up to 2.35% under the Affordable Care Act. Moreover, given the election results, the Bush tax cuts are likely to expire on December 31st. This would move the highest tax rates to near 40%. Scott Boras has estimated that a $10 million player in Florida would see his annual tax liability shoot up from $3.45 to $4.09 million. Wonder where Taxachusetts falls on a potential free agent's wish list?