One for you 19 for me

Someone has taken the trouble to calculate the tax revenue to the State of New York by virtue of the big salaries being handed out to Sabathia, Teixeira, and Burnett, as well as existing obligations to Jeter and A-Rod:

Here’s another way to add revenues to the hard-pressed state treasury: have pro games played in New York by high-priced athletes. To that end, the New York Yankees are likely to help add a few million dollars a year in personal income taxes from the salaries it will be paying to just four of its players.

The Department of Taxation & Finance made some calculations using the average annual salaries of A.J. Burnett ($16.5 million), C.C. Sabathia ($23 million), Derek Jeter ($18.9 million), Alex Rodriquez ($27.5 million) and Mark Teixeira ($22.5 million).

The ballplayers — excepting Jeter, who has battled the tax department over his legal domicile — appear to be nonresidents. Taxes on nonresident athletes are based on “duty days,” which include all days they are with the team from spring training to the postseason.

All told, that’s $3 million in tax revenue from those guys. If they all relocated to New York on a permanent basis, it would be $7 million.

Question for New Yorkers: is there sales tax on fast food there? If so, they’re going to need to recalculate to account for Sabathia.

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Comments

  1. The Common Man said...

    Or pass a new Sabathia Tax.  Just think, we’re that much closer to Yankee Stadium paying for itself.

  2. Rob said...

    Interesting math, but of course they didn’t calculate the loss of tax revenues from dumping guys like Giambi, Mussina, and Abreu.  By my count, the new additions constitute only an $11M marginal increase over the three biggest salaries the Yankees are shedding in 2009.  Using the 42% number that the article cites for duty days in NYC, that’s an increase of only about $4.9M of taxable income.

  3. Grant H said...

    And, of course, there’s the millions in stadium subsidies that are financing those contracts.

    But hey, believe what you want.

  4. Pete Toms said...

    The Jeter pissing match with NY over where he “resides” is a story I like.  You know, he sure hauls a lot of ass in NYC for a guy who doesn’t even live there….

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