Philadelphia (Feb. 19, 2003) -- A looming luxury tax that could have a major impact on the NBA is offering teams an incentive to curb their payroll spending, according to a report by the Philadelphia Inquirer.

While the league doesn't yet have a luxury tax in place, such a levy is expected to take effect next season, and it could cost teams affected big bucks, the Philadelphia Inquirer reported. The league currently has what’s called a "soft" salary cap that is full of exceptions. According to the report, this season’s cap is $40.25 million, and every team in the league has a payroll in excess of that amount. But, under collective-bargaining agreement that now governs the NBA, players are entitled to no more than 55 percent of the league's basketball-related income.

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