The Dallas Mavericks benefited from a new wealth tax Massachusetts voters approved last year.
Grant Williams declined to renew his contract with the Boston Celtics and instead agreed to deal with the Mavericks.
The former first-round draft pick may or may not push the Mavericks over the top in their bid for an NBA title, but the Celtics know that the power forward left partly because of Massachusetts’ “millionaire’s tax.” He won’t be on their roster in 2023-2024 after four seasons in Boston.
In an interview with The Athletic, Williams said his decision to sign a $54 million deal with Dallas over a $48 million offer from Boston was “a little strategic.” The difference between the offers was larger than it might seem.
“In Boston, it’s … $48 million with the millionaire’s tax, so $54 million in Dallas is really like $58 million in Boston,” Williams said.
Texas has no state income tax, allowing Williams to keep more of his earnings.
Massachusetts would have taken 9% of Williams’ earnings because of its 5% flat income tax and newly created 4% tax on income in excess of $1 million.
Voters passed the millionaire’s tax in a referendum last year, 52-48%.
Critics have said the tax will cost the state jobs. A 2022 study by the Center for State Policy Analysis at Tufts University noted that “some high-income residents may relocate to other states” and warned that “tax avoidance could be widespread.”
The Celtics traded guard Marcus Smart to the Memphis Grizzlies and acquired forward Kristaps Porzingis from the Washington Wizards. Porzingis played three seasons for the Mavericks (2019-2022).
Williams and Smart were known for their defensive prowess on a Celtics team led by high-scoring stars such as Jason Tatum and Jaylen Brown and rebounder Al Horford.
“I think they’ll have success,” Williams told Heavy Sports about his former Celtics teammates. “Me and Marcus brought the energy and grit, but at the same time, I trust and believe that their entire team has the ability to defend. They still have Al [Horford]. They still have guys like Kristaps who can move his feet and block shots.
“Then JT and JB [Tatum and Brown], they’re going to lead the charge. You know, it’s important for them to step up. So even without us, I think they’ll be fine.”
Dallas is about 1,750 miles from Boston and will be a drastic change of scenery for the former University of Tennessee standout.
“It’s fast-paced,” Williams said of his life in the Heavy Sports interview. “But it’s been a blessing, you know? I’m thankful for a new opportunity, thankful for a team that’s really in a great position to have success. I’m excited just because it’s going to be a great moment to be able to compete with this team.”
