Soak the Rich

[randallscott35]

Let's start with Peyton shall we. (From Forbes)

New Jersey Taxes Could Eat Up All Of Peyton Manning's Super Bowl Earnings

Peyton Manning has the opportunity to pull a John Elway and ride off into the sunset as a Denver Bronco after winning his second ring, not that he wants to retire. His career will hinge upon an offseason exam on his surgically-repaired neck, according to ESPN s Chris Mortensen. Obviously, the most important implication of the exam will be Mannings health. But whether his career continues will have an effect on how much tax New Jersey can collect from him for his appearance in the Super Bowl XLVIII.

Should the Broncos beat the Seahawks, Manningand the rest of his teammateswill earn $92,000. The losers share in the Super Bowl is $46,000. So why does Mannings future beyond February 2 matter to New Jersey? It would seem logical that the Garden State would apply its tax rates on the $92,000 or $46,000 Manning earns for his week in East Rutherford. Unfortunately, we are dealing with tax laws, not logic.

New Jersey, and every other state that imposes a jock tax, taxes players on their calendar-year income from each employer. If the Broncos defeat the Seahawks, Mannings 2014 playing income to this point would be $157,000 derived from playoff bonuses. If the Broncos lose, his playing income would be $111,000.

If Manning is unable to continue playing, New Jersey would apply its tax rates to his income and multiply that amount by the ratio of 7/33 to determine his tax liability. The 7 in the numerator represents the week he spends in the state practicing and attending required NFL events. The 33 is the total number of duty days performed during the year31 days in January plus two in February. If Manning is forced to retire, New Jersey will collect approximately $1,575 from him if the Broncos win and $982 if they lose.

But should Manning continue his career into the 2014 season, New Jersey will collect an additional $45,000 from him by taxing income he has not even earned yet. Manning is due $15 million next season, which would push his 2014 earnings to $15,157,000 or $15,111,000, and bump him into Jerseys highest 8.97% tax bracket. Luckily, his duty day ratio would go from 7/33 to 7/200, without regard to the Broncos game at MetLife MET +1.45% Stadium against the Jets next season.

If Manning is able to play next season, his New Jersey income tax would be $46,989 on $92,000 for winning the Super Bowl, or 51.08%. If they lose and he is able to play in 2014, he will pay New Jersey $46,844 on his $46,000, which amounts to a 101.83% tax on his actual Super Bowl earnings in the stateand this does not even consider federal taxes!

Because the Broncos play at the Jets next season, Mannings effective New Jersey tax rate will be more in line with the states tax table. He will pay roughly $60,414 if they win the Super Bowl and $60,229 if they lose based on allocable income of $682,065 or $679,995 (9/200 x total 2014 calendar-year pay). However, if the Super Bowl were held anywhere other than New Jersey, he would only be paying them $13,425 or $13,384 for his 2014 game against the Jets.

[Rudeboyelvis]

The most shocking thing about this story, if I've interpreted it correctly, is that Peyton Manning lives in New Jersey.

[randallscott35]

Originally Posted by Rudeboyelvis

The most shocking thing about this story, if I've interpreted it correctly, is that Peyton Manning lives in New Jersey.

He does not. You have to pay taxes for each game you play in any given state.

[Rudeboyelvis]

Lovely.

[casp0555]

Originally Posted by randallscott35

He does not. You have to pay taxes for each game you play in any given state.

If they have state taxes....right?

[randallscott35]

Originally Posted by casp0555

If they have state taxes....right?

Yes, for instance, Miles who I know, has to file in every state the Cowboys have a road game and file federal from Texas. The 8 game checks he gets from TX where they don't have a state income tax don't have that taken out.

[randallscott35]

All based on where the events are played.

[dellinger63]

The seven states with no income tax Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming when ranked by fiscal condition among all states come in at 1,6,31,2,20,23 and 5 for an average of 12.5

Conversely the seven states including DC since it's taxed as a state, with the highest income tax rates, California, New Jersey, Iowa, DC, NY, VT and Oregon (all above 8%) come in at 46,50,18,49,39,22 and 32 for an average of 36.6

Yet politicians albeit mostly democrats call for more taxes to make things better.

http://mercatus.org/publication/stat...king-50-states

http://taxfoundation.org/blog/monday...tax-rates-2013

[randallscott35]

YES WE CAN BABY!!! Go Obama