Taking our second stop in the the Midwest for the day, we now turn to the Big 12.
If this is your first time stopping by, here are some articles to get you caught up to speed in the series on the impact state income taxes could have on NCAA recruiting.
Although the Big 12 may enjoy the upper hand against other conference’s tax bills, competition for recruits within the conference will likely be fierce.
Of all the programs within the Big 12, Iowa State would suffer the greatest blow from paying college athletes. Having never won the Big 12 football championship and last winning the Big 12 basketball regular season title in 2001, they would now also be forced to offer their athletes some of the lowest net income offers among the NCAA.
This article only discusses state income taxes. College athletes would also be subject to federal and local income taxes. Provisions in the federal tax code allow for the deduction of state and local income taxes for certain income thresholds. Given this potential deduction on federal taxes, the variance in total income taxes owed may not be as drastic between conferences and schools. However, for simplicity sake - this article solely focuses on state income taxes.
Estimated football and basketball salaries provided by CNBC's Mark Koba (@MarkKobaCNBC).
- Estimated football salary: $178,000
- Estimated basketball salary: $375,000