75. Are teams really competing on a level playing field? Since the tax rate is different in the different states and Canada, don't the teams in a more "tax friendly" state have an advantage over the other teams?
Yes they do. For example, an offer from Orlando will provide a higher net income than the same offer from Los Angeles, because the player will play at least half his games in a state with no state income tax. But the advantage is not quite as large as you might expect, because most jurisdictions with NBA teams require visiting athletes to pay state income taxes (often called a "jock tax") for each "duty day" they spend there. There is not a standard definition for a duty day, but it is generally considered to be any day the player spends in a particular jurisdiction, including for preseason, regular season and postseason games. For example, if there are 170 duty days in a season and a player plays five of those duty days in a state with a jock tax, then the player will pay state income taxes in that state based on 5/170 of his income.
Currently:
Florida (Heat and Magic), Tennessee (Grizzlies) and Texas (Mavericks, Rockets and Spurs) have no state income tax.
Florida (Heat and Magic), Ontario (Raptors), Tennessee (Grizzlies), Texas (Mavericks, Rockets and Spurs) and Washington D.C. (Wizards) do not make visiting athletes pay a jock tax.
Illinois (Bulls) does not make visiting athletes pay a jock tax if they come from jurisdictions without a jock tax. However, Illinois does not credit its residents for jock taxes paid out of state, so Bulls players can be double-taxed for some road games.
The league also has regulations to help neutralize the tax disadvantage of Canadian teams, and there is language in the CBA to help protect players' benefits from any adverse effects caused by changes in Canadian legislation or tax laws.
Incidentally, players are always paid in U.S. dollars, even if their team is located in Canada.