Like us on Facebook


Follow us on Twitter





Page 5 of 9 FirstFirst ... 34567 ... LastLast
Results 61 to 75 of 128

Thread: Yanks Get Cole

  1. #61
    Join Date
    Dec 2011
    Posts
    10,027
    Quote Originally Posted by dayners81 View Post
    I dont know how much it matters tax wise but the NFL, NBA andMLB all pay their players once a week and they pay taxes to whatever states their games are in.
    If Cole makes less than 180m on 324m that tax rate is ludicrously high. He makes 36m and comes home with less than 20m WOW
    That number seems out of line. State income tax rates range from 0% to 13.3%. Over the life of a $300 million contract that could result in roughly $40M in state tax burden. Federal tax on salary north of 233K-$466K (depending on filing status) is 39.6%. Feds take the bite and I'm fairly certain that number includes federal tax.

    A player making $37M will pay $14,584,643.32 to federal taxes alone if he is single, falls into a 39.6% tax bracket, and pays $2,830,500 to FICA taxes alone. They pay more than half their incomes to both the FICA and federal taxes. Tack on the state and local taxes.

    Of course there are many loopholes and residency rules which lessen the local and state tax burden.
    “Farts do not cease to exist because they are ignored.” — Aldous Huxley
    "Not everything that counts can be counted and not everything that can be counted counts."--- Albert Einstein
    “Not everything that is faced can be changed, but nothing can be changed until it is faced.”---- James Baldwin



  2. #62
    Join Date
    Nov 2009
    Location
    New Jersey/Delaware/PA
    Posts
    2,047
    Other than the states with extremely low or zero state income tax, I don't think that factors into a player's decision much. NY income tax is 8% top bracket anyway, which is not that bad. California is 12% top bracket. Over the course of the deal, Cole saved about $13 million by signing in NY instead of California if he was given the same deal (which I don't believe he was).

    Anyway, I could see the players making 2-3 million a year being worried about income tax, especially in a sport where any contract could be your last, and you can essentially stop making money if you are not a star as soon as you retire, which is often at a young age. Once you get up to a $300 million contract, you'd have to be insane to be concerned about income tax. If you are remotely intelligent, you and your grandkids never have to worry about money again with $180 million in hand. Making that number $204 million (in a state with no income tax) is not going to significantly change your life.


    Derek Jeter is a lucky man.

  3. #63
    Join Date
    Dec 2011
    Posts
    10,027
    ^^Precisely. The Feds take the biggest bite.

    I believe Cali is actually at 13.3% the highest state income tax in country. NY is at 8.8%.

    Seven states have no personal income tax:
    Wyoming
    Washington
    Texas
    South Dakota
    Nevada
    Florida
    Alaska
    “Farts do not cease to exist because they are ignored.” — Aldous Huxley
    "Not everything that counts can be counted and not everything that can be counted counts."--- Albert Einstein
    “Not everything that is faced can be changed, but nothing can be changed until it is faced.”---- James Baldwin



  4. #64
    Join Date
    Nov 2009
    Location
    Creepyville, USA
    Posts
    41,618
    Boomer & Gio also just talked about this exact thing and exact numbers. My $170m figure was exactly correct as his net figure .

    Leo is always correct. That’s why Leo rules.

  5. #65
    Join Date
    Dec 2011
    Posts
    10,027
    Quote Originally Posted by LeoYankee View Post
    Boomer & Gio also just talked about this exact thing and exact numbers. My $170m figure was exactly correct as his net figure .

    Leo is always correct. That’s why Leo rules.
    Not disputing the figure as I made clear. What I did dispute and clarify; that is the TOTAL TAX burden including FEDERAL, state and local. Not just state and local as you intimated in your previous post, ie NYC ect.

    He gets mashed for 39.6% no matter where he lives. Add 13.3% in Cali or 8.8% in NYC. if he lives in Washington or Wyoming it's 0%.
    Last edited by drt1010; 12-13-2019 at 11:09 AM.
    “Farts do not cease to exist because they are ignored.” — Aldous Huxley
    "Not everything that counts can be counted and not everything that can be counted counts."--- Albert Einstein
    “Not everything that is faced can be changed, but nothing can be changed until it is faced.”---- James Baldwin



  6. #66
    Join Date
    Dec 2010
    Posts
    7,015
    13.3% of $324 million X days in California would be the California tax. If he lives and plays in California, he pays for every day of the year except for the travel days and spring training days, all-star game, road playoff and World Series games, etc. So he pays for roughly 215 days at the California rate and 150 days at all the other states' rates. If he lives and plays in NY, he pays the 8.8 % rate for those same 215 days, likewise Texas at 0%. So the difference between signing with the Angels and Rangers for $324 would be $324 million X (13.3% - 0%) X 215 /365 = approximately $25 million in extra state taxes. For California vs NY it would be $324 million X (13.3% - 8.8%) X 215 /365 = approximately $9 million. Of course, this would be partially adjusted by the different states in the travel schedule due to different divisional opponents, etc. and it would also be reduced for the tax deduction on the Federal return for the state taxes (though this is negligible under the recent Trump tax cut).

  7. #67
    Join Date
    Dec 2011
    Posts
    10,027
    ^^^Exactly. Thanks for walking us thru the details.
    “Farts do not cease to exist because they are ignored.” — Aldous Huxley
    "Not everything that counts can be counted and not everything that can be counted counts."--- Albert Einstein
    “Not everything that is faced can be changed, but nothing can be changed until it is faced.”---- James Baldwin



  8. #68
    Join Date
    Jul 2018
    Posts
    905
    Quote Originally Posted by LeoYankee View Post
    That dude lost so much credibility here over the last few months. Kooky stuff. Yet, I enjoy all opinions.
    I love you too Leo....

    Seriously though.. he'll be paying a pretty penny to a team of accountants and Lawyers just to deal with this issue. When you make this much, every government entity you come close to wants to take a bite... and even the NO INCOME TAX STATES have even found ways to get their share... Not to mention that he'll make his home in Cali and play in NYC... both are notorious for fighting hard for every last dime they can get... right down to seeing where you take your dog to the vet to determine "your home state" (true story.. I read about it online a few months ago how NY is going after people who move out of state...)

    I don't envy him in that pursuit...

  9. #69
    Join Date
    Jul 2018
    Posts
    905
    Quote Originally Posted by johnnyi View Post
    13.3% of $324 million X days in California would be the California tax. If he lives and plays in California, he pays for every day of the year except for the travel days and spring training days, all-star game, road playoff and World Series games, etc. So he pays for roughly 215 days at the California rate and 150 days at all the other states' rates. If he lives and plays in NY, he pays the 8.8 % rate for those same 215 days, likewise Texas at 0%. So the difference between signing with the Angels and Rangers for $324 would be $324 million X (13.3% - 0%) X 215 /365 = approximately $25 million in extra state taxes. For California vs NY it would be $324 million X (13.3% - 8.8%) X 215 /365 = approximately $9 million. Of course, this would be partially adjusted by the different states in the travel schedule due to different divisional opponents, etc. and it would also be reduced for the tax deduction on the Federal return for the state taxes (though this is negligible under the recent Trump tax cut).
    and that's just income taxes... there are other taxes aimed at pro-athletes on the books in most states (that have pro teams) that get applied too... it's way more complex than this.

  10. #70
    Join Date
    Feb 2012
    Location
    A Firehouse
    Posts
    33,429
    Quote Originally Posted by LeoYankee View Post
    Boomer & Gio also just talked about this exact thing and exact numbers. My $170m figure was exactly correct as his net figure .

    Leo is always correct. That’s why Leo rules.
    Uhhhh. I posted the tax info.



    Sent from my SM-G973U using Tapatalk
    He is talking about the one and only, pure trash: Ereck Flowers

    Quote Originally Posted by cowboyskilla View Post
    His stern face can give that impression but I don't feel that's the case. New York isn't an easy place to play at, so honestly I can see his confidence at an all-time low for him.

    I don't think he's a bust. I think he just needs the right motivation to pick himself up & play harder.

  11. #71
    Join Date
    Nov 2009
    Location
    Creepyville, USA
    Posts
    41,618
    Quote Originally Posted by RCSownsU View Post
    Uhhhh. I posted the tax info.



    Sent from my SM-G973U using Tapatalk
    Old people don’t get that it’s not as simple as state and federal.

  12. #72
    Join Date
    Feb 2012
    Location
    A Firehouse
    Posts
    33,429
    Quote Originally Posted by LeoYankee View Post
    Old people don’t get that it’s not as simple as state and federal.
    You said it was your info?

    Did I miss something? [emoji848] [emoji848]

    Sent from my SM-G973U using Tapatalk
    He is talking about the one and only, pure trash: Ereck Flowers

    Quote Originally Posted by cowboyskilla View Post
    His stern face can give that impression but I don't feel that's the case. New York isn't an easy place to play at, so honestly I can see his confidence at an all-time low for him.

    I don't think he's a bust. I think he just needs the right motivation to pick himself up & play harder.

  13. #73
    Join Date
    Dec 2011
    Posts
    10,027
    Golfers and tennis players get hit the hardest amongst pro athletes, primarily because they compete globally. Whenever they play in foreign countries, they have to pay taxes in that jurisdiction, and the tax liability is much larger than the state and local tax bite in US. It’s usually in the 30-40% bracket, taken directly from their winnings.

    Because the US is one of the few countries that taxes all personal income regardless of source, some pro sports stars who compete internationally actually have a financial disincentive to make their home in the US.
    “Farts do not cease to exist because they are ignored.” — Aldous Huxley
    "Not everything that counts can be counted and not everything that can be counted counts."--- Albert Einstein
    “Not everything that is faced can be changed, but nothing can be changed until it is faced.”---- James Baldwin



  14. #74
    Join Date
    Nov 2009
    Location
    New Jersey/Delaware/PA
    Posts
    2,047
    There's no guarantee he will live in California in the offseason. CC moved to the east coast I believe (ny or nj).

  15. #75
    Join Date
    Dec 2011
    Posts
    10,027
    Quote Originally Posted by Phoba Rama View Post
    There's no guarantee he will live in California in the offseason. CC moved to the east coast I believe (ny or nj).
    Alpine NJ.
    “Farts do not cease to exist because they are ignored.” — Aldous Huxley
    "Not everything that counts can be counted and not everything that can be counted counts."--- Albert Einstein
    “Not everything that is faced can be changed, but nothing can be changed until it is faced.”---- James Baldwin



Page 5 of 9 FirstFirst ... 34567 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •