Floyd's Tax Issues Concerning Floyd vs Pac in 2010

[THE REED]

LOL you dug yourself a whole with this one (especially on this site).

Though IMO it's a **** excuse being you're supposedly making a ****load of money anyway through other ventures, he'd obviously have to pay more taxes with a 2nd fight this year. The tax bracket is 35% and it won't change no matter how much money Floyd makes, but the more he makes obviously the more he's gonna pay based on that same percentage. He's not gonna make $300 mill and still pay the same as he did making only $400K, if that's the point you're trying to get at.

Actually he would still pay the same %

If that number was 200k, you would be right...

[Left Hook Tua]

It doesn't matter if he fights Pac this year or next.

He would be in the same tax bracket and pay the same percentage.

Whether he makes 50 Million this year and pays 35% and makes 50 Million next year and pays 35%... or he makes 100 million this year and pays 35%...

It's all the same.


Actually, they're talking about increasing the highest tax bracket to 39% next year... so he would actually pay 4-5% more in taxes for income he makes in 2011...

exactly.

he has to pay taxes no matter if he fights this year or not on that money.

tax rate is going up next year.


people who think taxes have to do anything with this fight not happening are silly.

whether personal income or corporate (don't know if floyd declares his income through himself or a corporation) the money he made from the mosley fight puts the taxes he pays in the highest tax bracket already.

taking another fight won't put him in a higher tax bracket , he's already at the maximum.

[Hitman932]

...LOL and again guys, I'm not defending Floyd. Just playing Devil's Advocate. I welcome the debunking lol.

You really haven't made a good point yet.

Reed pretty much laid it out for you cut and dry.

The excuse makes no sense as Floyd pays the same amount of tax no matter when he fights.

He can only lose money by waiting for next year, there is no possible scenario where he pays less taxes.

[THE REED]

You really haven't made a good point yet.

Reed pretty much laid it out for you cut and dry.

The excuse makes no sense as Floyd pays the same amount of tax no matter when he fights.

He can only lose money by waiting for next year, there is no possible scenario where he pays less taxes.

I see where he is coming from.


Floyd would in fact... technically pay more taxes, if he fights Pac this year along with Mosley.

Now don't get confused here.

The dollar amount owed, will be higher... but the percentage will not.

With that said, if he pays more... that means he made more.

And that is what makes it irrelevant.


Whether you make all 100 million this year.. and have to pay 35 million this year in taxes.

Or you make 50 mill this year, and 50 mill next year, and you pay 17.5 mill in taxes this year.. and 17.5 mill in taxes next year.

IS ALL SAME.

[THE REED]

And as I have touched on before.

The Bush taxcuts done in 2001 and 2003 expire this year (2010)

And the highest tax bracket, as of right now.. is going to be pushed from 35% in 2010... to 39.6% in 2011.. if Congress doesn't extend it.


So if you make 100 million this year... you pay 35 million in taxes.

If you make 100 million next year... you will pay 39.6 million in taxes.

[SuckaPunch]

reed, my rebuttal to that poster would've been a one-liner:

"floyd shouldn't fight anymore so he won't pay any taxes"

therefore, nobody can say that floyd is ducking anybody, he just didn't want to pay any taxes.

[THE REED]

reed, my rebuttal to that poster would've been a one-liner:

"floyd shouldn't fight anymore so he won't pay any taxes"

therefore, nobody can say that floyd is ducking anybody, he just didn't want to pay any taxes.

Yeah... but I'm not a troll. I'd rather explain it...

[RL_GMA]

Actually he would still pay the same %

If that number was 200k, you would be right...

Nah I'm agreeing with you. I'm just explaining to Rav someone who makes $400K isn't paying $30 mill in taxes.

[THE REED]

Nah I'm agreeing with you. I'm just explaining to Rav someone who makes $400K isn't paying $30 mill in taxes.

Hahaha... right right.

[Hitman932]

Hahaha... right right.

Well actually you could make the argument easily that not fighting Pac this year will cost Mayweather millions of dollars.

For the sake of argument lets say that Pac and Mayweather each walked away with 30 million from this fight after all expenses and fees. (I dont know if thats realistic but that's not the point)

Well by not making 30 million dollars this year Floyd loses an entire year of his life where he can invest and make money off of that 30 million dollars.

Assuming Floyd is smart enough to invest in something which returns a solid 8-10% that 30 million dollars earned this year would already be worth 33 million dollars by the time he would have fought Pac next year.

So by waiting until next year Floyd is costing himself 1) About 1.2 million dollars he will lose to the tax increase and 2) About 2-3 million dollars in investment returns on his income. (depending on when/if it comes off)

All told the decision to wait until next year will cost Floyd anywhere from 3.2 to 4.2 million dollars.

It will save him $0 in tax payments over the same 2 year period.

We need more finance people in here.