Pro Golfer: Why Work with a 63% Tax Rate ?

[Maverick74]

Quote from rallymode:

Mav, i am perfectly aware of what double taxation means, but getting back to the subject are you still claiming that his marginal rate is 62.5%? Perhaps change the batteries on that calculator before replying

No. I'm simply saying his total tax burden is probably far more then simply adding marginal tax rates. To top that off he actually stated his total tax burden was close to 62%. Is he lying? Maybe, I don't care. I was simply trying to construct a breakdown that would get to the 62% he stated. The fact of the matter is Rallymode, if we add up all the taxes we pay, and there are thousands of them from sales taxes down to airport taxes, his total tax burden is substantial enough for him to make the comments he did.

 

[Maverick74]

Quote from denner:

There is a very good reason just about every guy on the PGA Tour lives in either Texas or Florida. 20-30 years ago it wasn't uncommon for those guys to live in California, but I'm almost certain that there has only been a handful of guys that claim California for residency on their taxes. One of them was Fred Couples.

I could have sworn Phil lived in Arizona. I have no idea what he is doing in CA. His biggest sponsor is KPMG! He should know better. LOL.

 

[denner]

Quote from Maverick74:

I could have sworn Phil lived in Arizona. I have no idea what he is doing in CA. His biggest sponsor is KPMG! He should know better. LOL.

He lived in Arizona awhile back, but he's been living in Rancho Sante Fe (I believe, not 100% certain), for at least the past 10 years.

He grew up in San Diego, so it's probably to be near his parents.

 

[rallymode]

Quote from Maverick74:

The fact of the matter is Rallymode, if we add up all the taxes we pay, and there are thousands of them from sales taxes down to airport taxes, his total tax burden is substantial enough for him to make the comments he did.

Agreed. But perhaps we can go without the condescending tone next time you try to correct people. As it turns out, even you can be incorrect sometimes.

 

[L-Kabong]

Quote from Maverick74:

Here are a breakdown of the numbers (approximate):

Top Federal Tax Rate : 39.5%

Top CA tax rate: 13.3%

Medicare Tax (no max limit) : 2.9%

Payroll tax increase for all Americans: 2%

Obama care tax: 1%

New tax on investment income over 250k :3.8%

Let's get out the calculator boys:

I get 62.5%

Phil was right.

Good thing you aren't doing Phil's taxes.

Payroll tax is only on the first 113,000. Obamacare Investment tax is not on earned income. The investment income - so long as it is not short term - in the first place is not taxed at the top rate.

Suppose Mickelson's adjusted gross income is 20 million a year, on non investment income, e.g, tour winnings, endorsements etc. He deducts 2.6 for state taxes. 17.4 mill at 39.6 percent = 6.89 mil in federal taxes. Medicare = 580k.

Let's get out the calculator

50.7%. An obscene amount, but not 62.5%. It's actually a little less, because his marginal rate is 13.3% and 39.6%.

Athletes pay state taxes where they earn them. So if Mickelson earned money in other states his total state tax I think would be a little less. His non resident state tax payments to other states are deductible from his CA state income. So his rate is down a tad more.

A fucking football player's accountant has to file at least 10 state tax returns.

NY is just as bad as CA, if you live in NYC. The state rate is 9% and the city rate is 4%. Yep, NYC has its own income tax.

 

[denner]

Quote from Maverick74:

No. I'm simply saying his total tax burden is probably far more then simply adding marginal tax rates. To top that off he actually stated his total tax burden was close to 62%. Is he lying? Maybe, I don't care. I was simply trying to construct a breakdown that would get to the 62% he stated. The fact of the matter is Rallymode, if we add up all the taxes we pay, and there are thousands of them from sales taxes down to airport taxes, his total tax burden is substantial enough for him to make the comments he did.

Completely agree...but this is how many liberals try and talk around the truth about the "total tax burden". When I hear them go on the full court press about returning to some Clinton era tax rates, I want them to take a look at the COMPLETE tax picture..figure out every single tax you pay in a year and then compare it to the 1990's...it's not even funny (and don't even get me started on the amount of inflation since then)...or ZIRP, etc, e tc..

 

[Maverick74]

Quote from rallymode:

Agreed. But perhaps we can go without the condescending tone next time you try to correct people. As it turns out, even you can be incorrect sometimes.

What condescending tone? And who was I correcting? LOL. Come on Rally.

I only replied to the OP since he was the only one who put up numbers. I have no idea what Phil pays in taxes. His biggest sponsor is KPMG. I would be shocked if the guy paid more then 30%. He has to have a trust set up. I was simply adding the possible taxes that could get to 62%. I wasn't responding to anyone in particular. So not sure how I could be condescending. LOL. And btw, I'm wrong a lot. Never said otherwise.

 

[Maverick74]

Quote from denner:

Completely agree...but this is how many liberals try and talk around the truth about the "total tax burden". When I hear them go on the full court press about returning to some Clinton era tax rates, I want them to take a look at the COMPLETE tax picture..figure out every single tax you pay in a year and then compare it to the 1990's...it's not even funny (and don't even get me started on the amount of inflation since then)...or ZIRP, etc, e tc..

Yeah once you go down the inflation rabbit hole, things get really ugly. It's best to not even include that. LOL. But things like property taxes, estate taxes, etc are all fair game. Not to mention most of these athletes pay their agent a % of their take, their caddy, their personal trainer, their nutrition coach. Not trying to make anyone feel sorry for them. But you get an idea of why so many pro athletes declare bankruptcy within a few years of retiring from their sport. I suspect golfers fair the best though.

 

[denner]

Quote from Maverick74:

Yeah once you go down the inflation rabbit hole, things get really ugly. It's best to not even include that. LOL. But things like property taxes, estate taxes, etc are all fair game. Not to mention most of these athletes pay their agent a % of their take, their caddy, their personal trainer, their nutrition coach. Not trying to make anyone feel sorry for them. But you get an idea of why so many pro athletes declare bankruptcy within a few years of retiring from their sport. I suspect golfers fair the best though.

Yes, a part of it has to do with earning everything they make on their respective tours (i.e. no guaranteed multi-million dollar contracts before they step foot on the course).

On the other hand, few people realize how much those guys bank on endorsement deals, it literally dwarfs whatever they make in actual prize money...(but that's only the best of the best, not the average guy out there).

 

[failed_trad3r]

There is nothing wrong with 60% tax rate... as long as you get something in return, like entitlements. The problem is the entitlements in Europe are way higher than in the USA, even though the tax rates are similar. Where does the money go? Ofcourse, to foreigners. USA has tons of military bases around the world. Money that is used to maintain these permanently leaves the USA.

So in summary socialism in Europe works, because USA doesnt practice socialism as much as in Europe. Europe can have a smaller military.

P.S. I have found that the same applies to medicine. Europe pays less for the same medicine than USA.

So USA subsidize the European medicine and the European military! And thats why socialism works! :eek: :eek: :eek: It works if you can get others to pay for it!!! The big secret is out!!!