As we continue to look at the effect that state income taxes would have should college athletes be paid, we now turn our attention to the league who may want to oppose paying players the most – the PAC 12.
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If this is your first time stopping by, here are some other articles to get you caught up to speed in the series on the impact state income taxes could have on NCAA recruiting.
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If college athletes are to get paid, the PAC 12 would suffer the greatest set back as their average basketball player will make $5,917 less than the average NCAA basketball player and the PAC 12’s average football player would make $2,549 less than the average NCAA football player.
The biggest detriment to the PAC 12 is the fact that half of their schools reside in either Oregon or California – two states with some of the highest state income tax rates in the country. A football player for a team in either of these states would owe an average of $14,617 and a basketball player an average of $34,840.
This is double what the average NCAA football or basketball player would owe.
Both Washington and WSU should send their legislature a big thank you note as their state’s lack of an income tax will cause those two teams to owe an average of $184 in state income taxes for football players and $964 for basketball players. Those two schools who have previously lost many battles against fellow PAC 12 powerhouses now can offer their football players $14,433 more than the flashy jerseys at Oregon once could and $33,876 more than the PAC 12’s California teams can. That’s a difference in salary nearly the size of an entire median income level in the US.
This is double what the average NCAA football or basketball player would owe.
Both Washington and WSU should send their legislature a big thank you note as their state’s lack of an income tax will cause those two teams to owe an average of $184 in state income taxes for football players and $964 for basketball players. Those two schools who have previously lost many battles against fellow PAC 12 powerhouses now can offer their football players $14,433 more than the flashy jerseys at Oregon once could and $33,876 more than the PAC 12’s California teams can. That’s a difference in salary nearly the size of an entire median income level in the US.
With this large difference in salaries among PAC 12 schools, paying college athletes could cause a more dramatic shift in PAC 12 programs than the impact we noted yesterday among the SEC dominant powers.
The PAC 12 not only holds the title for highest state taxes owed in both football and basketball but also holds the title for the most dramatic variation in state tax bills among their own programs.
The PAC 12 not only holds the title for highest state taxes owed in both football and basketball but also holds the title for the most dramatic variation in state tax bills among their own programs.
NOTE:
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).
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
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