Michael Conklin (Texas A&M; Google Scholar), Athletic Performance and State Tax Rates: Why NBA Players Perform Worse in High-Tax States, 21 Md. J. Bus. & Tech. L. ___ (2025):
This Article presents the results of a novel empirical study measuring the impact of state income tax rates on professional athletic performance. While prior scholarship established that state tax burdens influence where athletes choose to play and the financial dynamics of team rosters, this groundbreaking study provides a significant advancement in the field by demonstrating a statistically significant relationship between state tax rates and athletic performance. The implications of this groundbreaking result are far reaching, applying to the cognitive anchoring heuristic, recent changes to state and local tax (SALT tax) deductions, and even racial bias. Furthermore, this result is relevant in corporate America where the rise of remote work has increased the ability of workers to relocate to more tax-friendly states.
By creating a novel framework to measure athlete performance in isolation from the effects of opposing players, this study will hopefully serve as a powerful catalyst to spark future research in this emerging field. The findings have broader implications for discussions of competitive balance in professional sports, the behavioral effects of tax policy, and the psychological dimensions of high-income taxation. By demonstrating that tax policy can influence not only financial decisions but also individual performance, this research expands the conceptual reach of tax law and invites further interdisciplinary inquiry.
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