Progressive Taxation I’m Against
Larry Coon paints a horrifying picture of the Lakers getting fucked explains the new CBA (emphasis mine):
Luxury tax
• 2005 CBA: Teams paid $1 for every $1 their salary was above the luxury-tax threshold.
• 2011 CBA: Teams pay $1 for every $1 their salary is above the luxury-tax threshold in 2011-12 and 2012-13. Starting in 2012-13, teams pay an incremental tax that increases with every $5 million above the tax threshold ($1.50, $1.75, $2.50, $3.25, etc.). Teams that are repeat offenders (paying tax at least four out of the past five seasons) have a tax that is higher still — $1 more at each increment ($2.50, $2.75, $3.50, $4.25, etc.).
• Who benefits? I’ll tell you which teams don’t benefit — the perennial taxpayers, like the Lakers and Mavericks. When the league was unable to negotiate a hard cap, they settled for the next best thing — a more punitive luxury tax that will make teams think twice before committing to a higher payroll. For example, the Lakers’ tax bill in 2011 (when the tax was dollar-for-dollar) was about $19.9 million. Under the new system, being that far over the tax line would cost them $44.68 million. If they were a repeat offender (paying tax at least four of the previous five years) they would owe $64.58 million!
