NBA owners propose new luxury tax system
Derek Fisher - G - Los Angeles Lakers
Oct. 28, 2011 - 10:15 AM ET
According to Zach Lowe of SI.com, the NBA's owners have proposed a lesser penalty for annual luxury tax payers, and agree that even tax-paying teams should recieve some of the proceeds.
A triple or quadruple luxury tax had been proposed to create better competitive balance, but the tax was too punitive and the cutoff was too sharp (most teams stopped spending just shy of the limit, because otherwise they 1) pay for the player's salary, 2) pay a dollar-for-dollar luxury tax on the player's salary, and 3) become ineligible for luxury tax revenues). In short, this new proposal needed to be made and is further evidence that negotiations are making rapid progress.
Source: SI.com
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