“Now, however, James has returned to Ohio, where the income tax is higher than the 0 percent rate Florida levies, so don’t expect a similar drumbeat of anti-tax madness (unless, of course, they argue that Gov. John Kasich’s tax cuts are the reason James feels more comfortable going back, or something). That isn’t to say James won’t feel the impact of state taxes — Kiplinger estimates that he’ll pay about $1.19 million in state taxes on his basketball salary alone.”

But notice where James did not go: California. He could have come here in 2010, but didn’t.

And now, he could have turned the Clippers into a championship team (assuming that crazy Donald Sterling distraction ever goes away), while becoming a Hollywood star like Shaq.

But here’s the state top income tax rates:

0 percent — Florida

5.4 percent — Ohio

13.3 percent — California

That is, California would gouge him at 2.5 times the rate of Ohio.

Ohio also is special for James because he was born and raised in Akron, just 40 miles down the 77-Willow Freeway from Cleveland. His family and buddies are there, from childhood through his Cavalier days. As he wrote in his new Sports Illustrated essay up today:

“Before anyone ever cared where I would play basketball, I was a kid from Northeast Ohio. It’s where I walked. It’s where I ran. It’s where I cried. It’s where I bled. It holds a special place in my heart. People there have seen me grow up. I sometimes feel like I’m their son. Their passion can be overwhelming. But it drives me. I want to give them hope when I can. I want to inspire them when I can. My relationship with Northeast Ohio is bigger than basketball. I didn’t realize that four years ago. I do now.”

So once again, Taxifornia loses a potential championship.

The current conventional wisdom is that he’s likely to end up back with the Heat. Under NBA rules intended to help teams keep their stars, he can make the most guaranteed money with Miami — a five-year, $129 million deal, averaging $25.8 million a year. Other teams can offer him at most a four-year, $96 million deal (average: $24 million a year).

But in 2010, the last time LeBron was a free agent, he didn’t take the maximum available from his old team, Cleveland, or even from Miami. He took less money because he wanted to join a team ready to make championship runs, and that’s just what happened with the Heat, which made the finals four straight years, winning twice.

So what are the loaded teams this time around? Two teams jump out — the Los Angeles Clippers and the Houston Rockets, which each have two of the 20 or so best players in the league to team with LeBron.

Millions more available in Houston, Miami

But if money is at all a factor for LeBron — not just his salary but how much of a tax bite he faces on his estimated $42 million in annual endorsements — than Proposition 30 is going to hurt the Clippers’ chances badly.

The sting of Prop. 30 on high earners first was highlighted by a sports story in January 2013, when golfer Phil Mickelson said he was considering leaving Rancho Santa Fe and San Diego County because of high taxes. Another San Diegan, small-government crusader Richard Rider, subsequently explained why Mickelson had reason to grouse:

“Here’s the fact that EVERYONE (including me) initially undervalued concerning Mickelson and CA state income taxes. Starting in 2013, Mickelson’s NET state income tax has jumped 83.6%!  And yes, this huge increase hits most Californians making more than $2 million income.

“Here’s why. Until 2013, state income taxes were deductible for federal income tax purposes. Starting in 2013, for the really rich, this deductibility largely goes away (as does deducting property taxes and many other deductions). For people with over $2 million of income, they lose 80% of such deductions.

“With Proposition 30 passed in November, CA has raised its income tax on the wealthy by 29%. The combined tax increase is breathtaking. Do the math, and you find that in 2011 the net CA income tax for Mickelson was 6.7%. In 2013 his net CA income tax is 12.3% — an increase of 83.6%.”

Because of this huge bite, assuming James’ endorsements remained at $42 million, if he played for the Clippers and made $24 million, he would face a 51 percent effective tax rate on his $66 million in income, meaning he would take home a little bit more than $32 million.

Clippers fans can blame CA Dems if LeBron stays away

If he played for Houston, in a state that has no income tax, his 39 percent effective tax rate on $66 million in income means he would take home a little bit more than $40 million. That’s only slightly less then he would make if he returns to Miami, in another state that has no income tax. In Florida, his 39 percent effective tax rate on $67.8 million in income means he would take home about $41.4 million.

Now obviously this is a simplistic calculation of his taxes, which would be subject to other factors, especially given the complex ways many states target the income of visiting pro athletes. But the bottom line is pretty inescapable: Houston and Miami have huge advantages over the Clippers on the money front.

LeBron James may not care about how much money he makes at this point in his life. And one of his very best friends, Chris Paul, is a superstar point guard with the Clippers, where the coach is Doc Rivers, another LeBron favorite.

But if his decision is a close call and he doesn’t choose the Clippers, it’s fair to give some of the blame to Proposition 30 and the confiscatory policies of the California Democratic Party.

By John Seiler

Hail the tax-free champions!

Yesterday LeBron James won the NBA championship for the Miami Heat.

Back when James jumped from the Cleveland Cavaliers to the Miami Heat a couple of years ago, one reason cited was that Florida has no state income tax. So he largely avoided the state income taxes of Ohio (5.925 percent top rate), New York (8.82 percent) and California (10.3 percent, plus whatever might be added by voters in November).

Under IRS rules, you pay state income taxes in the state in which the game was played. So James still pays California income taxes when he plays here, New York income taxes in New York, etc. But home games in Florida are exempt. So are endorsement deals, which will become even more bountiful now that he has won the championship some critics said he was too “selfish” to win because he didn’t want to get gouged on taxes.

According to Sports Illustrated, LeBron James slam-dunked $44.5 million last year. Of that, $30 million was in endorsements. And of his $14.5 million salary, probably about $9 million was exempt from state taxes; about $5.5 million was earned in states with income taxes. So he still paid something to California and New York.

But here’s the key: By living in Florida, he also paid little or no California (or other state) sales, property and other taxes. That meant California (or another high-tax state) probably missed out on hundreds of thousands of dollars in tax revenues.

And the people in California (or another high-tax) state who work in real estate, car dealerships, etc., who didn’t get James’ business also didn’t pay taxes on the business they lost.

Remember that when politicians, such as Gov. Jerry Brown, say that raising taxes doesn’t kill jobs.

OK, the Lakers have won a lot of championships in recent years, including five of 13 since 2000. That’s impressive.

But of the last 10 championships, six have been won by teams in states with no income tax: San Antonio in 2003, 2005 and 2007; Dallas in 2011; and Miami in 2006 and 2012. That’s 60 percent for the no-tax states.

Also, in the last two years, the runner-up teams were Miami last year, and Oklahoma City this year. Oklahoma is getting rid of its income tax. So that’s all four teams in states with no state income tax now or in the near future.

Stanley Cup

True, the Los Angeles Kings won Hockey’s Stanley Cup this year. Good for them. And the New York Giants won the Super Bowl; they play home games in New Jersey, where the top state income tax rate is 8.97 percent. But endorsement deals for those teams are much less than for what James gets.

There are no NHL players among the players in the top 10 for salaries and endorsements. Hockey is much less popular in American than basketball.

Football scored two in the top 10 list: Matt Ryan of Atlanta, $32.7 million (6 percent top Georgia state income tax), who has won no championships; and Tom Brady, $30 million (5.3 percent in Massachusetts), who last won a championship in 2005.

Topping the list are two golf guys, Tiger Woods, $62.3 million and Phil Mickelson, $61.2 million. Tiger moved from Taxifornia to Florida years ago. Mickelson is selling his house in Santa Fe Springs.

In the top 10, the only baseball player is Alex Rodriguez of the New York Yankees, at $36 million, just $4 million of it from endorsements. But Albert Pujols of the Anaheim Angels (not of Los Angeles) might top that for 2012.

Recent World Series winners have been from high-tax states: St. Louis in 2011 (6 percent Missouri state income tax), San Francisco in 2010 and the Yankees in 2009. However, baseball rosters, like those in football, are much larger than those in basketball and hockey, meaning mediocre players are much more important to a team’s success. And a utility infielder doesn’t worry about state taxes. He just wants to be in The Show.