Which Baseball Team Should Manny Machado and Bryce Harper Sign With – If They Care About Taxes?
We're still in the middle of baseball's hot stove season - the sport's offseason, when franchises juggle their rosters via trades and free-agent signings. There are dozens of free agents looking for contracts with new teams, but let's face it: All eyes are on superstars Manny Machado and Bryce Harper.
Machado and Harper are asking for contracts worth more and, who knows, they just might get them. If so, they'll be hit with some pretty big tax bills to go with the huge salaries. Their federal tax totals won't be affected by which team signs them, but their state taxes certainly will. That's because the bulk of what they earn will be taxed at the highest income tax rate in the state where the team is located, and state income tax rates vary widely. State sales tax and property tax rates differ even more. (Note: Athletes also pay state income taxes in most states to which they travel for road games throughout the season.)
