If we look at the first four years of the contract, Howard would make $3,692,371.44 more with the Lakers than he would with the Rockets. Adjusting that number for California’s state income tax, however, Howard would actually make $1,094, 342.38 more as a Rocket playing the majority of his games in a state with no income tax because he would save $4,786,713.82 in taxes.
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Imo that extra 1 million isn't the reason Dwight will join Houston, but when you consider the 4.7 million dollar swing created by L.A. tax vs Texas tax (or lack thereof), it does help a little.
The real reason Dwight will join Houston is happiness--he knows he will be happier here. We will treat him better than the way L.A. fans treated him, McHale will coach him better than D'Antoni coached him, he will have a better supporting cast here than he did in L.A. and he will win more in Houston.