Tony Romo will make a lot of money playing quarterback for the Dallas Cowboys under his new contract. How much money that contract is actually worth depends on how you look at the situation.
Americans for Tax Reform looks at the situation in the following terms: if, you opt to play for a team in a state that has no income tax, you made a smart choice. If you opt to play for a team in a state that has a state income tax, then that is very unfortunate.
Here's their rationale for why Romo's new deal is so great:
The Cowboys QB now claims the top spot previously held by Drew Brees of the New Orleans Saints because of no state income tax in Texas. With Romo’s income tax burden being 39.6 percent – the top marginal federal income tax rate in the U.S. – and estimated tax liability of $7.12 million, he still stands to earn $752,000 more than Brees. Romo should serve as an example of why businesses and taxpayers are making the move to Texas. Under Gov. Rick Perry, Texas has continued to thrive and experience economic growth throughout the recession because of its low tax rates and economic competitiveness. While a handful of GOP governors are seeking to eliminate or lower their states’ incomes tax rates, such as Gov. Jindal and Gov. Brownback, more players will want to play in states where they will not feel the greatest tax sting. Some teams might even seek to relocate to one of these states.
In other words, if you choose to continue playing for a team that just won the Super Bowl and resides in a state that has an income tax, this means you're "settl[ing] for being compensated second best."
Meanwhile, playing for team that is owned by someone that spends $2 million on a luxury bus and simply wants future credit for something that probably won't happen is a prudent move because, you know, NO TAXES.
[ATR]
