Income Tax Rates for Baseball Players
Published in 2012, Baseball Salaries and Income Taxes: The “Home Field Advantage” of Income Taxes on Free Agent Salaries is an article under the Journal of Sports and Economics.
Theme
The theme is to discuss the impacts of income tax in determining the effect on player salaries and by how much? This article also compares the local and individual income tax rates as far as the Major League Baseball and free agents for various teams are concerned.
Audience
The audience for this article may be aspiring players that wish to sign the free-agent contracts. It may also be the famous baseball players who, of course, may have been taxed before. The player’s managers are also a significant audience. Since the income taxes results in a decrease in the amount of salary, then that means that the managers need to understand the income tax rates for every state or city that their clients play in. Financial analysts are also included in the audience since they generally advise on the money. Before advising a baseball player or a team, they should take note of the major and scanty details discussed here.
Voice
The voice used in the article is passive. The tone in the entire text addresses a general audience and is based on facts indicating mathematical evidence, not taking preference to only one idea.
Form and Structure
The article is a journal with 16 pages, 3 of which contain the title and the references.
Summary
Baseball players, depending on their roles and achievement levels, are well paid. The salaries however, are taxed at different rates, depending onb the city or state that the player h
as played or been signed in. In the Income tax rates comparison table, the tax rates in some cities have risen over the year margin, while others have decreased. This greatly affects both the players as well as the free agents. Some players even refuse to play in some states due to these tax rates. To calculate the pretax salary of a free agent who is affected by the tax, the fixe66d-effects model, a mathematical equation is applied. This aids in attaining accurate results for the tax differences. Generally speaking, the tax rates of baseball players is not determined by examining one baseball player. A series of data from about 372 players is collected over time and calculated to attain results. This method, as much as it appears wrong to normal citizens, it has been used over time, and that means its accuracy is undebated. Due to the decrease in the pretax salaries, most cities with high income tax rates register a lower number of baseball players. This is because most players that are renowned prefer to be signed in with teams that have a higher pretax salary per player. These taxes are however imposed if the player is not from the state or city under consideration. “The home field advantage” is attained when these players belong, and are playing and earning from teams in their city. The taxes tend to be lower thus teams find it affordable to sign in free agents. In order to limit sudden transfer and any mistreatment of players a contract with the no trade policy is signed, as it protects them fully.