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Tom Brady owes the IRS over 60 grand for winning Super Bowl.

sawdust

sawdust

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Tom Brady faces $60,500 IRS bill for winning Super Bowl | WashingtonExaminer.com

This is just wrong.

They said Brady will have to pay about $13,000 in income tax on the prize, and then another $5,000 “gift tax” for doing a nice thing in giving Butler the keys.

“That's a $5,000 gift tax on top of a $13,500 income tax on the truck, for a combined federal tax hit of $18,500,” said ATR, headed by Washington tax foe Grover Norquist.

Then there’s the game check of $97,000 for winning. “Brady will face income tax at the top rate of 39.6 percent. In addition, since this is a wage, he will also owe the top Medicare tax of 3.8 percent, half of which will be picked up by the NFL. Put those together, and Brady will pay $42,000 in federal taxes on the game,” said ATR.

The total tab: $60,500.
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sawdust said:
Tom Brady faces $60,500 IRS bill for winning Super Bowl | WashingtonExaminer.com

This is just wrong.
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I don't disagree with you, but in the US don't you have to pay tax on winnings in a lottery or at a casino, etc.? Why should winning a car or income from playing a game be any different. Here in Canada, if you win $10 million in a lottery, that's $10 million tax free you get and you pay tax only on any income you generate on the $10 million after you have it in your hands. Likewise, if you win a few $thousand at the race track or casino, you don't have to pay tax on your winnings before you get it and you don't have to declare it as income, because it's not "earned".

Tom Brady, making $millions for playing a fun sport, in a league making $billions should not be the poster child for taxation sob stories. Put up the couple who win $300 million in the Megaball lottery having to pay $150 million in tax before they get their hands on a cent of it.
 
Being forced to give a percentage of your income to the government is wrong no matter what.
 
CanadaJohn said:
I don't disagree with you, but in the US don't you have to pay tax on winnings in a lottery or at a casino, etc.? Why should winning a car or income from playing a game be any different. Here in Canada, if you win $10 million in a lottery, that's $10 million tax free you get and you pay tax only on any income you generate on the $10 million after you have it in your hands. Likewise, if you win a few $thousand at the race track or casino, you don't have to pay tax on your winnings before you get it and you don't have to declare it as income, because it's not "earned".

Tom Brady, making $millions for playing a fun sport, in a league making $billions should not be the poster child for taxation sob stories. Put up the couple who win $300 million in the Megaball lottery having to pay $150 million in tax before they get their hands on a cent of it.
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I don't feel sorry for Brady, and you're right, he makes millions playing a game. I understand the need for taxes but taking such a high percentage of earnings to pay for a bloated federal bureaucracy isn't something I can support.
 
sawdust said:
I don't feel sorry for Brady, and you're right, he makes millions playing a game. I understand the need for taxes but taking such a high percentage of earnings to pay for a bloated federal bureaucracy isn't something I can support.
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On that we agree, 110% to use a sports cliche.
 
The reason we pay gift taxes on winning is because it can be written off as an expense by the donor. Eliminate the ability to expense prizes and there would be no need to tax winners. The first $13K or so of value he gave away in the truck is exempt, and after that he will have to pay gift taxes now or at his death or have the difference allocated against his $1M exemption, so he is getting taxed on both sides of that deal. It is why some people will negotiate around being the middleman and why people need to talk to a good tax attorney before they claim their lottery winnings. Once they take possession of it, they expose themselves to possibly avoidable taxes depending on what they plan to do with the money.
 
CRUE CAB said:
Who wrote the tax laws?
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Congress. If nothing else, this serves as a good illustration of who the pays the majority of taxes in the country, for those who don't think the rich pay their fair share.
 
sawdust said:
Congress. If nothing else, this serves as a good illustration of who the pays the majority of taxes in the country, for those who don't think the rich pay their fair share.
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How did congressmen get in such positions?
 
Well that sure is going to deflate his paycheck. But hey, he doesn't seem to mind a deflation here and there. :2razz:
 
CRUE CAB said:
How did congressmen get in such positions?
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The point you are trying to make is that we get the government we deserve. That's an assertion that I agree with but it also gives us an idiocracy. How did congresscritters get such fat pensions? Absolute power corrupts absolutely. There is much that goes on in congress that is wrong and stupid. When a group springs up like the Tea Party or the Green Party, the Republican and Democrat parties rise up to try to crush them even though their ideas are fresh and may actually make government more sound. The government is about nothing but money and power, and that's a problem.
 
sawdust said:
The point you are trying to make is that we get the government we deserve. That's an assertion that I agree with but it also gives us an idiocracy. How did congresscritters get such fat pensions? Absolute power corrupts absolutely. There is much that goes on in congress that is wrong and stupid. When a group springs up like the Tea Party or the Green Party, the Republican and Democrat parties rise up to try to crush them even though their ideas are fresh and may actually make government more sound. The government is about nothing but money and power, and that's a problem.
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Yes, we are getting exactly what we deserve.
 
Poor baby.

He can afford it INCREDIBLY easily.

My empathy for him over this is ZERO.
 
HonestJoe said:
Or to put it another way, his after-tax take-home pay for the afternoon works out at around $10,000 an hour? (not counting all the pay and endorsements not covered in that article).

So you could have a point. That does sound wrong.
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We are all paid in proportion to the value we create in business. Brady won the Super Bowl so he earned what he made. On the other hand, Josh McCowen, quarterback for the Buc's sat home and made nothing. He got what he deserved as well.
 
sawdust said:
We are all paid in proportion to the value we create in business. Brady won the Super Bowl so he earned what he made. On the other hand, Josh McCowen, quarterback for the Buc's sat home and made nothing. He got what he deserved as well.
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So basically RG3 owes money back.
 
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