Richard Sherman, Seattle Seahawks
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(Photo by Sarah Stier/Getty Images)
The Seattle Seahawks will need to navigate the new income tax law passed by Washington state lawmakers. The “millionaire tax” will apply a 9.9% levy on annual income over $1 million starting in 2028. Governor Bob Ferguson has promised to sign the bill, but it may still face legal challenges.
Seattle is one of eight NFL teams based in states without an income tax, along with the Las Vegas Raiders, Houston Texans, Dallas Cowboys, Tennessee Titans, Tampa Bay Buccaneers, Miami Dolphins, and Jacksonville Jaguars.
That’s been a key point in the Seahawks’ pitch to potential free-agent signings. Amid changes affecting Seattle’s pitch to free agents in the future, former Seahawks cornerback Richard Sherman weighed in on how much impact this will truly have.
“I think it definitely plays a huge factor because when you talk about California, you get the weather,”Sherman said on the March 16 edition of “The Richard Sherman Podcast.” “If a guy is thinking about going there and he understands he has to deal with that big number for state tax, at least you can sell him on the weather, probably 300 days of sunshine, or 285 days of sunshine, whatever it is, depending on if you’re in the Bay or LA.
“If you’re going to New York, you can sell them the big city and all the allure that comes with New York City. But for Seattle, a lot of the draw is because it’s a smaller market, and you don’t have to deal with state income tax. That saves you a million bucks on a $10 million deal, especially on a signing bonus.”
Seattle Might Need to Make Bigger Offers In the Future
Nonetheless, Sherman doesn’t believe that the top earners won’t consider coming to Seattle if the team presents a big number they can’t turn down, regardless of the state’s tax situation.
“I think it’ll definitely have an effect on what players are thinking about when they come here,” Sherman added. “Obviously, if the number’s big enough, guys are still going to come play for the Seahawks. It’s not going to change. Total, you know, that nobody’s going to come play for the Seahawks.
“That’s not true at all by any extent, but it’s definitely going to make it more of a conversation than it’s been. It’s definitely going to be more of a factor than it’s ever been because that’s been one of the it go from being a pro, for the Seahawks, to a huge con.”
Seahawks GM Weighs In on New Income Tax Law
Moreover, Seahawks general manager John Schneider recently conveyed he believes Washington state’s new income tax on high earners will ultimately negatively affect the team’s ability to sign free agents.
“There were a bunch of agents texting me the other day like, ‘Hey, can’t use that anymore, buddy,'” Schneider said March 12 on his Seattle Sports 710-AM radio show (h/tESPN). “I think it is for all the pro teams here in town.It’s always been a hugeattraction, especiallycompeting with the California teams.
“It’s been a big deal for us. So, it’s going to sting, from a recruiting standpointand what that looks like. I’m sure Mike Reinfeldt and Mickey Loomis and all the cap guys that have been here before, too, are looking at this like, dang. It’s going to sting, no question about it.”