OUR CALIFORNICATION CONTINUES APACE: Amendment 87: How the Broncos play into Colorado’s tax fight.
Like any CEO, a head coach doesn’t have infinite money. He’s stuck with a salary cap, competing against 31 other teams for the same shrinking pool of ridiculously overpaid talent.
Enter Amendment 87, which offers most of us a token tax cut while nearly doubling the rate on those evil, hated rich people we call Denver Broncos. If it passes this fall, every Bronco currently taxed at Colorado’s flat 4.4% starts paying 8.4%.
Football players take a lot of hits to the head, but their accountants don’t — and unlike our legislators, accountants (and even concussed football players) can do arithmetic. All else equal, a player has to earn 8.4% more to play in Denver than to play somewhere with no state income tax at all.
Any player who plays for the Miami Dolphins, Tampa Bay Buccaneers, Jacksonville Jaguars, Las Vegas Raiders, Tennessee Titans, Dallas Cowboys, Houston Texans or the Seattle Seahawks gets an instant 8.4% raise compared to playing for Denver under Amendment 87.
Run Peyton Manning’s numbers again: at $20 million a year, that 8.4% is $1.68 million a year — $8.4 million over a five-year deal. Double those figures to adjust for inflation, and you’re talking real money even by NFL standards.
Sure, plenty of things factor into where a star chemist, programmer, performer or quarterback decides to live and work. But an 8.4% pay cut isn’t a rounding error. It’s the kind of number that ends up circled on a napkin in some agent’s office come free agency.
Not that it matters, but it’s not just football teams competing for star talent. Every Colorado business is as well.
Few things are as mobile as talent.