As most sport fans know our professional sports players pay Federal Income Tax. They also pay State Tax. However did you know they pay the STATE TAX to the state they earn the money in. Not necessarily their home state. Let’s say a Eli Manning plays a game at Indianapolis. The money he earned for that game is taxed by the state of Indiana. (I can only assume local city, county, etc. taxes are also collected). Can you imagine the tax nightmare? Does he have to prepare a tax form for every state he earns money. Does this include personal appearances also?
But here comes the rub. I recently read..Pius Heinz, a German poker player won $8,715,636.oo in the WORLD SERIES OF POKER, in Las Vegas TAX FREE !!!! Martin Stazko of the Czech Republic the second place finisher won $5,433,080.oo. Neither of these men will pay tax on any of this 14 million plus earnings. However third place winner, Ben Lamb a resident of the good old USA will have to pay approximately $1,524,011.oo on his $4,021039.oo Fourth place finisher Mark Gianetti, another USA Citizen won $3,012,700.oo but will have to surrender $1,524,642.oo to the Federal Government.
Granted the 2 nd place winner will have to pay taxes in his native Czech Republic. Due to Germany’s tax exempt gambling law, Herr Heinz will pay NO TAXES.
That is almost $14 million of U.S. Currency leaving the country, with no return to our treasury.
Does anyone else see anything wrong with this? I sure do.
This Is How I See It.