James, the superstar who has been playing in the NBA league for 20 seasons, has won the love of countless fans around the world with his outstanding performance and dominance. However, his annual salary and tax issues have always been of great concern to the outside world.

James' career is full of honors, he led his team to win the NBA championship four times and was honored as the Finals Most Valuable Player (FMVP) each time, which undoubtedly proves his dominance. However, the huge salary behind him has also sparked a lot of controversy. In the summer of 2022, James reportedly agreed to a 2-year contract with the Lakers worth a whopping $97.13 million in total, bringing his annual salary to $46.7 million, or roughly Rs. 341 million, for the 2023-2024 season. However, this figure does not represent the actual salary James is credited with. After various deductions, his actual annual salary was drastically reduced, with nearly $30 million dollars being deducted, according to statistics.

So, where did all these deductions go? For starters, the major expenses come from federal and state taxes. James is required to pay 37 percent of his annual salary as federal taxes, while California state taxes take up 13.3 percent of his annual salary. Together, these two items make up the majority of James' annual salary expenses. Next, the NBA league's third-party escrow also deducts 10 percent of the annual salary, which means James will have to pay $4.67 million. Finally, there are agent commissions and health insurance premiums, which usually range from 2-5 percent of annual salary, and even at the lowest 2 percent, James would have to pay $934,000.

To summarize, even though James' annual salary is a whopping $46.7 million, the actual amount in his hand is only $17,605,900, which is a difference of nearly $30 million. This reveals the mystery of the composition of the annual salary of the NBA's top stars.

However, that doesn't mean James' total income stops there. In addition to high salaries on the court, NBA stars can increase their total income through off-court earnings, such as endorsements and investments. This is one of the reasons why many stars choose to join big city teams, as it provides more exposure and off-court income opportunities.

Overall, the issue of James' annual salary sheds light on the income structure of the NBA's top stars. Despite their eye-popping annual salaries, the actual amount in hand is much lower than what is expected, which gives us a deeper understanding of the tremendous sacrifices and efforts they have made during their careers.

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