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I have seen people around here saying that if Floyd fights Pac in 2010... that his earnings for the fight... in addition to his earnings for the Mosley fight would push him into the next tax bracket.
This would make Floyd want to wait until 2011, so that the Pac fight earnings do not push him into the next bracket, and he would pay a higher percentage.
I myself am someone who has been saying this...
After doing some research (because I am not a tax expert).
There is actually a ceiling on the federal tax brackets..
In other words... once you make a certain amount per year... your tax percentage does not increase... should you continue to make more.
Depending on what you make, you fall into a certain criteria.. such as follows:
10% - $0 – $8,375
15% - $8,376 – $34,000
25% - $34,001 – $82,400
28% - $82,401 – $171,850
33% - $171,851 – $373,650
35% - $373,651+
35% seems to be the federal ceiling tax bracket.
In addition, Nevada (where Floyd lives) Does not have State income Tax.
With the Shane Mosley fight, obviously Floyd is already in this tax bracket, and it is my understanding that any additional income for Floyd (Pacquiao fight) would not push him into the next tax bracket... because another tax bracket does not exist.
What I found on "millionaire tax bracket":
What the discussion over the top marginal tax rate ignores, however (and what Ygelsias picks up upon) is that this rate has been assessed at very different thresholds of income. In 1940, for example, the top marginal tax rate was 81.1 percent -- but this rate only kicked in once you made $5,000,000 or more in income, which is equivalent to about $75,000,000 in today's dollars.
But today, the threshold where the top tax bracket kicks in isn't $75 million, or $5 million, or even $1 million ... it's a mere $357,700(as of 2009, it was kicked up to $373,651 for 2010).
The progressivity of the tax code stops there.
http://www.fivethirtyeight.com/2009/...x-bracket.html
Your thoughts?
This would make Floyd want to wait until 2011, so that the Pac fight earnings do not push him into the next bracket, and he would pay a higher percentage.
I myself am someone who has been saying this...
After doing some research (because I am not a tax expert).
There is actually a ceiling on the federal tax brackets..
In other words... once you make a certain amount per year... your tax percentage does not increase... should you continue to make more.
Depending on what you make, you fall into a certain criteria.. such as follows:
10% - $0 – $8,375
15% - $8,376 – $34,000
25% - $34,001 – $82,400
28% - $82,401 – $171,850
33% - $171,851 – $373,650
35% - $373,651+
35% seems to be the federal ceiling tax bracket.
In addition, Nevada (where Floyd lives) Does not have State income Tax.
With the Shane Mosley fight, obviously Floyd is already in this tax bracket, and it is my understanding that any additional income for Floyd (Pacquiao fight) would not push him into the next tax bracket... because another tax bracket does not exist.
What I found on "millionaire tax bracket":
What the discussion over the top marginal tax rate ignores, however (and what Ygelsias picks up upon) is that this rate has been assessed at very different thresholds of income. In 1940, for example, the top marginal tax rate was 81.1 percent -- but this rate only kicked in once you made $5,000,000 or more in income, which is equivalent to about $75,000,000 in today's dollars.
But today, the threshold where the top tax bracket kicks in isn't $75 million, or $5 million, or even $1 million ... it's a mere $357,700(as of 2009, it was kicked up to $373,651 for 2010).
The progressivity of the tax code stops there.
http://www.fivethirtyeight.com/2009/...x-bracket.html
Your thoughts?
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