Bryce Harper recently signed a big – really big – contract to play baseball in Philadelphia.
Bryce Harper played the outfield for the first time since signing a record $330 million, 13-year contract with the Philadelphia Phillies.
Columnist George Skelton writes in the Los Angeles Times that Harper’s decision to play in Philly made a lot of financial sense.
For Major League Baseball players, three teams are at the bottom of the standings on state taxes: the Los Angeles Dodgers, San Diego Padres and San Francisco Giants.
That’s because California is in a league of its own on personal income taxes. We’ve got by far the highest state rate in the nation, topping out at 13.3%.
By contrast, Pennsylvania has a low flat rate for every taxpayer regardless of income. It’s just 3.07%. That’s one reason why superstar slugger Bryce Harper signed an eye-popping 13-year, $330-million contract last week with the Philadelphia Phillies, spurning the Dodgers and Giants.
It was the largest free-agent deal in the history of North American sports.
Taxes matter, as Harper’s agent points out.
Harper will save tens of millions in taxes by signing with the Phillies instead of a California team.
“With a contract of that magnitude, it’s dramatic,” Scott Boras, Harper’s agent, says of the taxes. “It could be almost a full year’s compensation.”
It’s an interesting column. Coming soon: Opening day, March 28.