155 mil contract - 90 mil in taxes

[GURPS]

Yankees Pitcher To Lose Over Half of $155 Million Contract to Taxes
However sweet this $155 million dollar deal seems, the reality is that Tanaka will lose almost $90 million over the 7-year life of his contract with the Yankees


Tanaka will pay a combined marginal income tax rate of 56.1 percent - over half of his contract. For New York state and local taxes alone he will lose an estimated $2,811,257 a year. The combined marginal income tax rate Tanaka will pay is comprised of the federal, state and local tax rates, plus the Medicare payroll tax. The chart below shows Tanaka’s tax burdens as compared between the differing franchises.

While Tanaka is not your average employee, the real lesson to be learned here, one you won’t see in the headlines is that higher federal and state tax burdens can have a huge impact on employees and employment in a state. The sweetness of signing a $155 million contract to play baseball for one of the leagues most renowned teams, the New York Yankees, is only made bitter by the fact Tanaka will have to settle for receiving only $68 million (less than half) of the $155 million contract due to the heavy federal and state tax burdens.

Queue TJ to lecture me on how Taxes are Too LOW

... 3 .. 2 . 1

 

[b23hqb]

Queue TJ to lecture me on how Taxes are Too LOW

... 3 .. 2 . 1

Come on - even tj would struggle to live on $68 million over seven years. He'd probably still request and be granted food stamps and tax payer supported discounted health care.

 

[tommyjo]

Queue TJ to lecture me on how Taxes are Too LOW

... 3 .. 2 . 1

You do understand, don't you, that there is a difference between the marginal tax rate and his effective tax rate? He will not be taxed at a 56.1% rate on every dime of income. as your article infers. (This is REALLY basic tax related information. Even your most junior tax preparer at HR Block knows this.)

You do understand, don't you, that he will have accountants and lawyers prepare tax shelters for him so that he will never show $155,000,000 of taxable income?

You understand these points don't you?

Oh no, you don't...because your sources suck.

If you had an ounce of intellectual capacity, you might think the article was off base for the simple reason that YOU don't pay taxes on 100% of YOUR gross income...so why would the person in the article pay taxes on 100% of his income????

Oops...there go those pesky facts getting in the way of your propaganda again?

 

[Gilligan]

You do understand, don't you, that there is a difference between the marginal tax rate and his effective tax rate? He will not be taxed at a 56.1% rate on every dime of income. as your article infers. (This is REALLY basic tax related information. Even your most junior tax preparer at HR Block knows this.)

You do understand, don't you, that he will have accountants and lawyers prepare tax shelters for him so that he will never show $155,000,000 of taxable income?

You understand these points don't you?

Oh no, you don't...because your sources suck.

If you had an ounce of intellectual capacity, you might think the article was off base for the simple reason that YOU don't pay taxes on 100% of YOUR gross income...so why would the person in the article pay taxes on 100% of his income????

Oops...there go those pesky facts getting in the way of your propaganda again?

The article was factually correct. Your "rebuttal" was remarkably lame.

All is normal.

 

[Rommey]

You do understand, don't you, that there is a difference between the marginal tax rate and his effective tax rate? He will not be taxed at a 56.1% rate on every dime of income. as your article infers. (This is REALLY basic tax related information. Even your most junior tax preparer at HR Block knows this.)

You do understand, don't you, that he will have accountants and lawyers prepare tax shelters for him so that he will never show $155,000,000 of taxable income?

You understand these points don't you?

Oh no, you don't...because your sources suck.

If you had an ounce of intellectual capacity, you might think the article was off base for the simple reason that YOU don't pay taxes on 100% of YOUR gross income...so why would the person in the article pay taxes on 100% of his income????

Oops...there go those pesky facts getting in the way of your propaganda again?

You do understand that income over $400K is taxed at the 39.6% rate? ($155M - $2.8M = $152.2M)...So you are right, he won't be taxed on 100% of his income...he'll be taxed on 98.2% of his income at the 39.6% rate.

And the Medicare rate is taxed at the 3.8% rate on the entire $155M ($5.89M).

You also understand that he'll also have to pay taxes to all the different states the Yankees visit (an amount not figured into the article's calculations)?

 

[itsbob]

You do understand, don't you, that there is a difference between the marginal tax rate and his effective tax rate? He will not be taxed at a 56.1% rate on every dime of income. as your article infers. (This is REALLY basic tax related information. Even your most junior tax preparer at HR Block knows this.)

You do understand, don't you, that he will have accountants and lawyers prepare tax shelters for him so that he will never show $155,000,000 of taxable income?

You understand these points don't you?

Oh no, you don't...because your sources suck.

If you had an ounce of intellectual capacity, you might think the article was off base for the simple reason that YOU don't pay taxes on 100% of YOUR gross income...so why would the person in the article pay taxes on 100% of his income????

Oops...there go those pesky facts getting in the way of your propaganda again?

Pull your skirt down your stupid is showing.. it's apparent you don't know what the term "combined" means..

 

[czygvtwkr]

You also understand that he'll also have to pay taxes to all the different states the Yankees visit (an amount not figured into the article's calculations)?

Whut? I dont pay CA tax when I go there for work.

 

[Rommey]

Whut? I dont pay CA tax when I go there for work.

Professional athletes are usually subjected to taxes from other jurisdictions.

Professional sports players get taxed by pretty much every city and state in which they play, says Ryan Losi, CPA and executive vice president of Piascik & Associates, a Glen Allen, Va., accounting firm that represents more than 70 professional athletes.

"NFL players typically file in 10 to 12 jurisdictions. NBA is somewhere between 16 and 20. MLB is somewhere between 20 and 26, and the NHL is between 14 and 16," says Losi.

[snip]

Taxing states and some municipalities impose a "jock tax" on visiting professional sports players in one of two ways. Most use the "duty days" method, which divides the player's total number of work days during the season by the number of days spent playing in the state. A few use the "games played" method, which divides the total number of games in the season by the number played in the state.

Read more: Taxes: Cost Of Being A Professional Athlete | Bankrate.com

 

[Gilligan]

Whut? I dont pay CA tax when I go there for work.

You might well should be. We (my company) have to document who works where every year so our accounting staff can figure out all the states that are owed money.