
WA Income Tax Could Doom Seattle Sonics Return to NBA?
What was once a promising opportunity for the NBA to return a team to Seattle is now clouded.
WA State's Income Tax Not Favorably Viewed by NBA
According to multiple sources, including ESPN and 570 KVI Radio in Seattle, the city is no longer 'guaranteed' a franchise, after the recent NBA official meetings.
At the September Board of Governor's meeting it was revealed that Seattle was "no longer a lock" for expansion. Back in February, expansion meetings revealed serious concerns over WA state's 9.9 percent tax on those making incomes of $1 million or more.
Why Is Such a Tax A Concern?
CA has had an income tax since 1935, but they use a graduated tax ranging from 1 percent to as high as 13.35 depending on your income. With the number of professional teams in the state, they're 'used' to dealing with it for the income of their players.
However, in 'newer' franchise situations, it's the view by many experts that having a noticeably regressive tax, such as WA State's, could make it had to attract players, namely free agents.
NBA is In On Vegas, but Not Seattle
Despite warnings from the NBA and other insiders, Gov. Ferguson shrugged it off saying Steph Curry (NBA Golden State Warriors) "has paid a lot of money to CA". He made a remark about being at Climate Pledge Arena for opening night when the Sonics return. And he'd signed the income tax into law.
According to Brian Windhorst of ESPN:
"As of now, two things appear to be hard facts:
- Silver is a full-go on expansion to Las Vegas. (note: NBA Commissioner Adam Silver)
- The league does not seem to be happy with the bids from Seattle -- yet."
While the NBA has talked much about two expansion teams, there now is no guarantee that two will enter the league at the same time. Vegas is likely to go first, and now it appears the NBA is also positively eyeing a proposal from Mexico City.
If I-645 does not pass and the income tax stays, most experts say that will doom the Sonics returning to the city they left in 2008.
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