Tax Me!
The Queen Will Get Her Money!
By Kickntrue on 9/14/10
Playing in the Ryder Cup is a huge honor, so much so that the players aren't paid. Want to know what it costs them?! Her Majesty's Revenue and Customs ("her" would be the queen..?) is the UK's customs and tax people and they want their money!
Even though Ryder Cup players are not paid, the Revenue want a share of the huge endorsement income overseas-based stars like Woods, Phil Mickelson and Padraig Harrington pick up for wearing branded products.

However, they remain free to wear shoes of their choice, and that will make them liable for a tax bill which could add up to more than £10million.

In the case of Woods, that means handing over a share of his current $80m five-year deal with Nike.

An HMRC spokesman said: 'If players are paid for using equipment or clothing at the Ryder Cup then they are liable for tax — even if it is only their shoes.'
The players wear team shirts- so they can't be taxed on that- but if Tiger shows up in Nike shoes- that is part of his endorsement deal- so they figure out some % of his deal with Nike and make him pay on that? BRUTAL. I wonder if Tiger can have Nike make him a pair sans swoosh.

It seems like there has to be a a way around this. Don't rich people spend half their time figuring out ways not to pay taxes? This makes a sexy story, but I'm assuming somewhere along the line someone had to figure out the right wording in the endorsement contracts so that the players aren't actually paid for WEARING the clothes or shoes, right? I have no clue... just asking, but I have a hard time thinking Tiger will pay hundreds of thousands of dollars in taxes to wear Nike shoes during the Ryder Cup.

Full Story
Via GoeffShackelford.com

photo source


[ comments ]
birdieXris says:
I suppose technically Tiger isn't paid for WEARING the clothes, as much as nike pays him for use of his name and TW. :) that's probably the loop they use.
9/14/10
 
TeT says:
Sounds like going with no logos is the way to fly... or have Nike pick up the tab.
9/14/10
 
birdieXris says:
@kickntrue - it only seems like that because they make all the money. LOL.. Truth in real life, i just got a raise, now i take home less each paycheck than if i never got one. Believe it.
9/14/10
 
Kickntrue says:
@TeT- if Nike picks up the tab- then Tiger would owe tax on that income... Man, it's almost like the rich pay all the taxes...
9/14/10
 
BME_Badger says:
@birdieXris - please explain how that's possible given that our tax code is incremental. ie you pay x% on your first Y in earnings, than x+y% on every dollar after Y. You still pay the same tax rate on the Y dollars you were earning, you now just pay a little higher of a rate on the dollars earned after Y. The only thing I can think of is that your payroll department increased your withholding or there was some other internal issue.

In the US, you will never make less after tax by making more pre-tax, it's just not possible.
9/14/10
 
Kickntrue says:
/i guess i asked for this
9/14/10
 
birdieXris says:
@BME - asked my tax guy. Never got an answer tho. LOL.
9/14/10
 
BME_Badger says:
@birdie - maybe time for a new tax guy, skimming? :-)
9/14/10
 
lazorbeam says:
If birdies tax bracket changed because of the increase, it is possible for him to make less money...take home, right?
9/14/10
 
bducharm says:
Actually the top 1% of earners in America pay over 40% of the tax revenues received by the US Government. And of course, the Socialists (errrrr, Democrats!) want to take more of it!!!
9/14/10
 
BME_Badger says:
@lazorbeam - nope, we use a progressive tax.

Use the following example:
Tax brackets are every 5k after 20k...
$0 - $20k tax @ 10%
20k- $25k tax @ 15%
25k- $30k tax @ 20%
30k- $up tax @ 25%

This means if you make $24,999 you would be taxed at 10% on the first 20k and then taxed at 15% on the final $4,999.

Now let's say you get a raise to $29,999. You still get taxed at 10% on the first 20k, 15% on the next 5k, and then 20% on the final $4,999. You entered a new tax bracket, but only for the earnings above that level.
9/14/10
 
rmumph1 says:
Where is that BME_Badger? I like that
9/14/10
 
rmumph1 says:
Actually since I file married file jointly my tax bracket is better than that.
That is only for federal taxes though right?
9/14/10
 
birdieXris says:
@budcharm - y's it always gotta be a democrat/republican thing? hahahaha. The sad part of that is, everyone's fed up with both sides, but barely anyone votes independent. I really do feel like i'm throwing my vote away.
9/14/10
 
Banker85 says:
that is why we broke off from England. to much taxation.
9/14/10
 
rmumph1 says:
It's funny how we get off topic on here. Started with Tiger may have to pay taxes to what tax bracket, politics and the revolutionary war. I believe voting is today. Exercise your right to vote, except you England, you get told who is boss. We just get fooled into thinking our vote counts.
9/14/10
 
Tee it High. says:
This is becoming a big issue in sports. Usain Bolt refused to run in several big meets because of this tax problem.
9/14/10
 
BME_Badger says:
@rmumph1 - yeah, just an example of how the progressive federal tax brackets work (numbers not at all based in reality).

It's different on a state by state basis as they are allowed to tax however they'd like. Some states (like FL) have no income tax at all. Here in Wisconsin we use a style similar to the feds - just lower marginal rates.

As far as filing married, it gives you the ability to join your incomes and pay together. Since it is all going to one household the rates are different. ie someone making 100k on their own is going to be better off than a family making 100k together - hence the married brackets are usually a bit higher.

FWIW - I'm not an accountant or anything similar, just my understanding of how taxes work.
9/14/10
 
falcon50driver says:
Thank goodness! More people are starting to wake up about corruption in politics. Hopefully we can get the Constitutional amendment passed that states. "Congress shall pass no law, applying to the populace, that does not equally apply to the Congress, additionally, Congress shall not award itself preferential programs that are not also available to the public".
9/14/10
 
KVSmith59 says:
"Kickntrue says:
@TeT- if Nike picks up the tab- then Tiger would owe tax on that income... Man, it's almost like the rich pay all the taxes..."

Not "almost" but true. There's always talk of the rich having all of these loopholes, etc, but they pay a higher percentage of taxes than anyone. Most of the people that bitch get full or partial refunds every year and pay considerably less percentage wise than the rich. Also, without the rich, there would be no jobs :) blah blah blah.
9/14/10
 
jev says:
I think this is a hoax. TW pays his income taxes (if any) in the US, not the UK.
9/15/10
 
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