Re: Luxury tax

["Jim Meninno" <jim_meninno@hotmail.com>]

Presumably the money goes to lower revenue teams, so it is, in effect, 
generating more revenue.  If a rich owner wants to sink some of his own 
money into a player's salary some of that money will end up in the 
pockets of other owners, who can use it to sign their own players.  One 
report Ray posted said that the owners are asking for anything up to 
200% of salaries over the league average (2.6 mil).  Obviously it won't 
be as high as that, and it would only generate additional revenue if 
some of the cash is coming from outside sources.  Otherwise it's just 
redistributing the same money among all the teams.  

I still agree with you, though.  The luxury tax will make it even more 
difficult for teams to pay top salaries.  I suppose that's why the 
owners like it.

Jim

>From: Douglas342@aol.com
>Date: Thu, 29 Oct 1998 11:45:28 EST
>To: celtics@igtc.com
>Subject: Luxury tax
>
>Then why wouldn't a luxury tax simple allow the rich to pay mre?
>Maybe they pay only 20 mil plus 10 mil tax instead of 30 mil, but they 
still
>have to have the 30, right?  What good does this do anyone?
>   Am I missing something?
>


______________________________________________________
Get Your Private, Free Email at http://www.hotmail.com