Originally posted by frenchmov:
Originally posted by tankle104:
Let's say bosa gets a $40M signing bonus, he will take home about 40% of it. He will be at the top of the bracket in Cali, so that's about half. Then he will have to pay 10% to his agent, 5-10% for a money manager.
so it's possible that out of $40M he would take home like $15M. Still a lot of money but not the same as taking home $25M or so like he would in a state like Texas and Florida.
Someone like bosa should negotiate where the team has to pay his agent or at least half of what his agent should get. As a way to offset the ridiculous tax burden anyone on the team will get.
You do understand that there are 2 sets of taxes, correct? The CA yearly income tax, at its highest level, is about 13%. So when people say "half my taxes!!!" they're talking about an all-in, state/federal/social security/etc.
The argument here is playing in Florida (0%) vs playing in CA (13% ) of those particular game checks. It's difference obviously, but not major
Lol yes… his federal income tax is 37%. His state income tax is 13.3%. His agent fee is 10%. His money manager is probably 10%. So in Cali, he pays 50% of his check in taxes Vs in a state like Florida where it's 37% because it's only federal. That's millions in difference ($5.2M difference if his signing bonus is $40M).
so like I said, in California - he immediately loses 50% of his money to federal income taxes and the states income tax. Then 10% goes to his agent. Then whatever else he pays. So at best, he's getting 40% of his income.
when you're only takin home 40% of your total earning, I'd argue that 13.3%, several million, is a major difference. All because of where you live. Lol
lets say of a $40M signing bonus, he takes home $16M (40%). He lost 13.3% (CA state income tax) - which amounts $5.2M.
in other words, he would of taken home 32% more cash than he did and put that in his bank account if he lived somewhere else. Lmao "nothing major". That's why things like "it's only 13.3% of your income" is so dangerous. It's a ton of money compared to what you actually get to take home after everything has taxed you.
CA take home: $16M
FL take home: $21.2M - approx 32% difference
[ Edited by tankle104 on Sep 2, 2023 at 4:08 PM ]