Quote:
Originally Posted by bluejays
If in pro sports you pay taxes on the cities your games are played, then he's paying taxes on a portion of it he's paid in his playing years for the respective cities he's playing in. For the "retirement" salary, he would be paying taxes on whatever city he's living in right? So he could potentially move to Texas in retirement and not pay taxes during that time, am I correct?
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Pretty much. He could move to Texas or any other state with no income tax and avoid California state income tax on this particular income stream. No change in his federal income taxes though.
They’re basically paying him a gigantic pension.