Winning championships is not the only consideration on a star athlete’s mind when choosing a professional team. Recent comments by NFL standout Tyreek Hill illustrate that state taxes also figure into the mix. In explaining why he did not sign with the New York Jets (who play in high-tax New Jersey), Hill said he “was very close” to signing with the Jets, but “those state taxes, man. I had to make a grown-up decision.”
Pro athletes are not the only ones who consider the impact of differing state tax burdens when making relocation decisions – businesses and the top talent needed for the broader workforce do as well.
This is well-illustrated by a recent article from our friends at the Tax Foundation, which uses the Tyreek Hill example to demonstrate how state and local taxes play into decision-making. The article breaks down the differing tax burdens an athlete would face—and therefore, the millions in taxes he can save—based solely on the state in which the team he plays for is located.
States can attract businesses and talented individuals from all professional sectors by keeping their tax burdens low and tax systems simple and competitive. The prescription for doing so in Oklahoma is written in our Supply Side Revival proposal and our tax study from last year. The result will be economic growth and an influx of talent – a big win for everybody.
Click here to read the full Tax Foundation article.