The New England Patriots have a problem, and it’s not the roster or the new coaching staff. It’s “Taxachusetts.” On a recent episode of the Pat McAfee Show, where Bill Belichick has joined as a contributor, the former Patriots coach explained how difficult it is for the Patriots to win top talent since Massachusetts imposed a millionaires surtax on their earnings. The Wall Street Journal’s editorial staff report on the exchange:
For the latest evidence that state tax policy influences taxpayer decisions, take a look at the National Football League. On Monday former New England Patriots coach and general manager Bill Belichick explained that states with millionaire surtaxes like Massachusetts are at a disadvantage in attracting the best free-agent players.
“That’s Taxachusetts,” Mr. Belichick said on the Pat McAfee Show during a discussion about free agents. “Virtually every player, even the practice squad, even the minimum players are pretty close to $1 million. Once you hit the $1 million threshold, you pay more state tax in Massachusetts.”
It’s “just another thing you’ve got to contend with in negotiations up there,” Mr. Belichick added. “It’s not like Tennessee or Florida or Nevada or some of these teams that have no state income tax. You get hit pretty hard on that with the [players’] agents. They’ll come and sledgehammer you down about . . . the tax they’re paying.”
Massachusetts used to have a 5% flat tax on all incomes above $8,000. But in 2022 the state imposed a four percentage point surtax on incomes over $1 million. The Patriots are way under the NFL salary cap and have money to outbid other teams for top talent. But they have recently lost out on free agents they were reported to be courting.
Taxes may not have played a role in those cases, and pro athletes make team decisions for many reasons, from championship prospects to management to weather. But most have a short career horizon for high-dollar earnings. The state tax delta is not a rounding error.
Jared Walczak at the Tax Foundation calculated in April that Cincinnati Bengals quarterback Joe Burrow will pay an estimated $3.59 million in state income taxes in 2024 in Ohio, but if he played for the Jaguars in Jacksonville, Fla., he’d pay $379,000. A player making $50 million would pay $4,968,457 playing for Minnesota Gov. Tim Walz’s home-state Vikings compared to $586,902 on that same contract at the Dallas Cowboys.
Those are eye-watering numbers, but the same tax calculations exist for all taxpayers. High-income earners have more flexibility than most to relocate. Democrats who think surtaxes on the affluent make good policy might reconsider that line of scrimmage.
Action Line: You know that whether you’re a pro athlete or you work at the local gas station, Your Survival Guy wants you to keep your money and save til it hurts. State politicians shouldn’t treat you like a piggy bank to fund their own ideological agendas. If you’re looking for a better America, begin your search with Your Survival Guy’s 2024 Super States. Then, click here to subscribe to my free monthly Survive & Thrive letter.
“That’s Taxachusetts” 😂😂😂
Bill Belichick #PMSLive pic.twitter.com/JqOUggUtuq
— Pat McAfee (@PatMcAfeeShow) August 26, 2024
