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Individual Income Tax. For the individual income tax, we use the top statutory marginal income tax rate taking into account all the tax rules and deductions that may apply in the calculation of the top income tax rate. In cases where local income taxes apply (Belgium, Denmark, Portugal, and Switzerland), we have used the average top local income tax rate. We have used as sources OECD (annual): Taxing wages for the period 1980-present, OECD (1986): Personal income tax systems for the period 1975-1983, PriceWaterhouseCoopers (annual): Worldwide Tax Summaries, and International Bureau of Fiscal Documentation (2008): The International Guide to the Taxation of Sportsmen and Sportswomen. The latter source is particularly helpful for determining specific rules applying to foreign football players. Because tax rules are complex, it is essential to cross-validate various sources to create an error-free database. In particular, we investigated thoroughly situations where discrepancies arose between our sources and used additional country-specific data obtained directly from domestic sources to resolve such discrepancies.

Taxation and International Migration of Superstars: Evidence from the European Football Market