According to Adrian Wojnarowski of Yahoo! Sports the Luxury Tax is not the issue of the Lockout.
Adrian Wojnarowski reports for Yahoo! Sports:
While details were still unclear how a punitive luxury tax system would work for teams exceeding the salary cap, one league source involved in the talks told Y! Sports on Thursday night: “The tax is not the issue. The exceptions are where the fight is.”
The owners have largely relented on letting players use their “Larry Bird rights” to re-sign with teams that are over the cap, but the owners don’t want to permit teams paying luxury tax to be able to sign players to the midlevel and bi-annual exceptions, a source said.
The two sides could be closing on a three-year maximum for signing players to the midlevel exception, starting at $5 million per season, sources said.