The Miami Dolphins officially signed Ndamukong Suh to a $114 million contract.
The interesting thing is that they were competing with two NFL teams that have hefty state income taxes, California and Michigan. California would have taxed 13.3% of Suh’s income. Michigan would have taxed him 4.25%. In Florida, there is no state income tax so the Dolphins leveraged this to their competitive advantage.
In other words, the Oakland Raider’s would have to pony up more than $15 million extra (over full length of Suh’s contract) to make up for the different tax rates. If one only considers the guaranteed portion of Suh’s contract, which was $60 million, Oakland would have to pay $10.1 million extra for an equivalent offer.
Living in a warm climate and avoiding state income taxes brings a smile to my face.
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