Stephen A. Smith said California’s tax burden became a major concern as his work required him to spend more time in Los Angeles, telling Patrick Bet-David that the issue eventually affected his view of Gov. Gavin Newsom.
During the exchange, Smith compared California with New York and said he had been paying close attention to the tax rates affecting his income.
“Cuz New York was at around 9%, California was approaching 13%, now they’re at 13.6%. If Gavin Newsom had his way, it’d be about 16.8%. See, these are things that I’ve been paying attention to,” Smith said.
Smith said his concerns went beyond the state tax alone, pointing to additional taxes he associated with Los Angeles and Los Angeles County.
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“And so I’m looking at it, and I’m like, you got California state tax, you got Los Angeles city tax, you got L.A. County tax, and then here was what really, really did it,” Smith said.
According to Smith, the issue became particularly important about two years earlier when his responsibilities with NBA Countdown required him to spend additional time in California.
He said the program was being produced from Los Angeles more frequently, increasing the amount of time he spent in the state.
“This happened to me 2 years ago. They said, look, cuz I was going to have to spend some more time out there, they got me doing NBA Countdown, and they decided that we were going to do NBA Countdown more so from L.A. than any place else. Okay, fine. So every time I’m in the state of California, I’m getting taxed that day,” Smith said.
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That prompted a conversation with his estate planners about how his time in California could affect his taxes.
Smith said they advised him that leaving California on weekends could be financially beneficial.
“And so I’m sitting down with my estate planners and all of that, and they said, look, when the weekend arrives, it would be in your best interest to go to Vegas, or to Utah or something. I said, why?” Smith recalled.
He said the explanation he received centered on determining whether he remained in California, including through his phone activity.
“And they said, well, if you stay in California, you know, IRS, they ping your phone. So anytime you get a call or you’re on the phone, they know that you’re in the state. Wow. And that counts as a day,” Smith said.
Smith initially found the explanation difficult to believe.
“And I said, you got to be kidding me,” he said.
Smith said his subsequent tax returns convinced him that the advice he had received about his time in California was accurate.
“And sure enough, when I saw my tax returns, it was absolutely correct,” Smith said.
The experience also became part of Smith’s thinking about Newsom.
Smith said he has spoken with the California governor several times and recalled directly connecting his tax concerns to his willingness to support Newsom politically.
“And that’s why I said, you know, I remember years later, and you know, a couple of years ago, I look at Gavin Newsom, who I’ve spoken to a couple of times, and I’m like, you know, you look beautiful in those blue suits, you look very presidential. Ain’t getting my vote,” Smith said.
Bet-David immediately asked whether Smith had actually delivered that message directly to Newsom.
“You told him this?” Bet-David asked.
Smith said he had.
“Yeah, damn right. Because these damn taxes,” Smith responded.
WATCH:
Smith’s comments tied his position directly to his personal experience working in California and the tax consequences he said came with spending additional time there.
His account centered on how his NBA Countdown schedule increased his presence in Los Angeles, the advice he received from his estate planners and what he subsequently saw on his tax returns.
For Smith, the issue ultimately extended beyond the amount he was paying and into his view of California’s political leadership.
His message to Bet-David was straightforward: regardless of how presidential he thought Newsom appeared, his experience with California taxes was enough to cost the governor Smith’s support.
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