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Winning Share after Taxes

Molten said:
Isn’t it really the federal government that is the big winner? His federal rate would be close to or over 40% with that amount.
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37% to the feds. which is close to (but not) the lowest it's been in my 16 years as a cpa.

california is pretty damn high compared to most other states, though, topping at 13.3% if i'm not mistaken. and i thought i saw that there's a proposal to increase it to 16.3%.

every state will want a piece of your earnings as an athlete, entertainer, etc. many of those states will also demand a piece of your advertising/sponsorship income as well, since in theory it's associated with your performance-based earnings.
 
McLovin said:
every state will want a piece of your earnings as an athlete, entertainer, etc. many of those states will also demand a piece of your advertising/sponsorship income as well, since in theory it's associated with your performance-based earnings.
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Every state?
 
McLovin said:
every state with a state income tax
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Right. Just wanted to make sure I didn't miss something again. The gov't has found so many ways to fleece us, I figured there was something out there.
 
Space Bandito said:
I agree. I doubt I'll be here forever, but it's hard for me to imagine living anywhere else in the US. There's nothing quite like the Pacific Ocean in my book.
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Many love it. I find the coastal weather and Pacific Ocean too cold in California for a boater like me who spends many hours each week on the water or in it. My daughter lives in San Diego and we visit there several times a year and with the marine layer, cold ocean, and average highs in the 60's for 7 months each year it's certainly not my ideal for boating, fishing, and other water sports. I love Hawaii, the Caribbean, and Florida(or Minnesota during the summer) with their much warmer water and air temperatures. We have friends that live in Santa Barbara and they love layering up to go sailing on the chilly Pacific. To each their own.
 
tahoebum said:
Many love it. I find the coastal weather and Pacific Ocean too cold in California for a boater like me who spends many hours each week on the water or in it. My daughter lives in San Diego and we visit there several times a year and with the marine layer, cold ocean, and average highs in the 60's for 7 months each year it's certainly not my ideal for boating, fishing, and other water sports. I love Hawaii, the Caribbean, and Florida(or Minnesota during the summer) with their much warmer water and air temperatures. We have friends that live in Santa Barbara and they love layering up to go sailing on the chilly Pacific. To each their own.
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I love most of coastal CA. We have a place on Maui where I will spend 4-8 weeks a year. I definitely like Hawaii better than CA overall.
 
Space Bandito said:
I love most of coastal CA. We have a place on Maui where I will spend 4-8 weeks a year. I definitely like Hawaii better than CA overall.
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I totally agree on Hawaii being better than CA. Naples Florida is better for us overall as well and has an average winter high temperature that is only 0.5 degrees cooler than Hawaii. We just booked a Hawaii trip for next spring with some good CA friends that just spent a week with us at our MN lake home and will likely spend a month or two each year in Hawaii when our youngest is off to college in a few years.
 
tahoebum said:
I totally agree on Hawaii being better than CA. Naples Florida is better for us overall as well and has an average winter high temperature that is only 0.5 degrees cooler than Hawaii. We just booked a Hawaii trip for next spring with some good CA friends that just spent a week with us at our MN lake home and will likely spend a month or two each year in Hawaii when our youngest is off to college in a few years.
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I'll be in the far east for most of next year, but let me know when you go to HI. I try to spend as much time there as possible. Would love to play a round or a few.
 
Space Bandito said:
I love most of coastal CA. We have a place on Maui where I will spend 4-8 weeks a year. I definitely like Hawaii better than CA overall.
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I’m with you on that, we had a place in Maui for about 5 years, just became a whipping to get back/forth from there as our kids are all on the east coast. I love the islands, I just can’t make it work with a big family and a wife who is a nester.


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Seeing those figures is stunning. Nobody should lose that much to taxes, IMO.

As far as income tax rates from previously in NY to here, I think it's only 1% less here in NC.

But for me, it's 5.5% higher because NYS tax was forgiven with my police pension. Down here, it's taxed like regular income.

Of course what offsets things nicely is the drastically lower cost of living. As an example, we were paying $17k/yr property/school tax in NY in a very nice neighborhood. Also a very nice neighborhood here, similarly sized (but nicer) home, similar sized lot, $3,400.

Car insurance is easily half, no tolls, cheaper gas, home services, golf! Etc...
 
WMac19 said:
Seeing those figures is stunning. Nobody should lose that much to taxes, IMO.

As far as income tax rates from previously in NY to here, I think it's only 1% less here in NC.

But for me, it's 5.5% higher because NYS tax was forgiven with my police pension. Down here, it's taxed like regular income.

Of course what offsets things nicely is the drastically lower cost of living. As an example, we were paying $17k/yr property/school tax in NY in a very nice neighborhood. Also a very nice neighborhood here, similarly sized (but nicer) home, similar sized lot, $3,400.

Car insurance is easily half, no tolls, cheaper gas, home services, golf! Etc...
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Its not just state to state. I moved one county south, doubled my mortgage and our total bill outlay every month only went up $200.
 
NullNomad said:
Ouch, I wonder if they charged him $1.99 for the lube as well!! Actually... correction... $1.99 for the lube, $5 for the CA processing fee, $19.99 eco tax, $3.50 convince fee, $4.25 post administration cost, $8.75 local handing fees...
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LMAO
 
JB said:
CA is the clear winner of the PGA Championship.

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And they wonder why people are leaving like crazy....
 
JB said:
CA is the clear winner of the PGA Championship.

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And the Fed... but, CA is awful when it comes to income tax. That is mind blowing.
 
And with the new tax law you can’t deduct SALT taxes any longer. Which makes it that much worse.


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Space Bandito said:
I agree. I doubt I'll be here forever, but it's hard for me to imagine living anywhere else in the US. There's nothing quite like the Pacific Ocean in my book.
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This is kind of where I’m at. Honestly I probably will just leave for the rest of my earning years and still come back in retirement when I’m not making enough money to be taxed at one of the higher rates and there’s no place better to be than central coast.
 
JB said:
CA is the clear winner of the PGA Championship.

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He may owe a lot more as California has a bill that may raise the top tax rate to 15.8% RETROACTIVELY to January 1st of this year lol. His take home on that $1,980, 000 would be more like $934,000. California is also considering the first ever “wealth” tax which includes an exit tax provision that phases out slowly over 10 years after you leave the state. Those proposing these bills have a super majority in the state legislature so there is a very good chance they will pass. Glad my wife and I made our permanent exit in 2018.
 
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tahoebum said:
He may owe a lot more as California has a bill that may raise the top tax rate to 15.8% RETROACTIVELY to January 1st of this year lol. His take home on that $1,980, 000 would be more like $934,000. California is also considering the first ever “wealth” tax which includes an exit tax provision that phases out slowly over 10 years after you leave the state. Those proposing these bills have a super majority in the state legislature so there is a very good chance they will pass. Glad my wife and I made our permanent exit in 2018.
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That’s insane. I can’t believe they’re even allowed to do that.
 
Still $990k more than I make on a golf course.
 
zbeekner4 said:
That’s insane. I can’t believe they’re even allowed to do that.
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The exit tax provision is likely unconstitutional but that won’t stop California from trying. They did a retroactive income tax rate change in November about 8 years ago when my wife and I were residents and we had to take out a home equity line of credit to pay our state taxes as it obviously wasn’t withheld from out paychecks the entire year. Nothing like getting hit with extra 5 figure tax bill right before Christmas.

If this bill passes we will have friends that move up their plans to leave the state, especially since many of them are working remotely from home. Nevada is only 80 miles away from the suburb we lived in and it’s an easy move for many of our ex neighbors.
 
tahoebum said:
The exit tax provision is likely unconstitutional but that won’t stop California from trying. They did a retroactive income tax rate change in November about 8 years ago when my wife and I were residents and we had to take out a home equity line of credit to pay our state taxes as it obviously wasn’t withheld from out paychecks the entire year. Nothing like getting hit with extra 5 figure tax bill right before Christmas.

If this bill passes we will have friends that move up their plans to leave the state, especially since many of them are working remotely from home. Nevada is only 80 miles away from the suburb we lived in and it’s an easy move for many of our ex neighbors.
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That rate change would only get you an extra 5 figures of taxes if your taxable income was greater than $900k. I'm sorry for your loss, but if you're pulling in $900k or more each year, I'm not sure $10,000 is the most meaningful impact.

That rate change increased the tax bill of someone that had $300k of taxable income by $150. It was not the evil, unreasonable thing that you are implying.
 
Pantherhawk said:
That rate change would only get you an extra 5 figures of taxes if your taxable income was greater than $900k. I'm sorry for your loss, but if you're pulling in $900k or more each year, I'm not sure $10,000 is the most meaningful impact.

That rate change increased the tax bill of someone that had $300k of taxable income by $150. It was not the evil, unreasonable thing that you are implying.
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Because my wife had a great job my effective tax rate for federal, state, fica and Medicare was 57% on nearly all my income. Many think that is a fair rate but I’m not one of them. The high CA income taxes made it easy to retire early as after paying our nanny I was only taking home one third of my gross pay.

Luckily as Americans we have options and there are 7 states with no income tax and we would retire to Florida for 6+ months each year even if they had an income tax. Zero income tax is a bonus for us. It will be fun to watch how the exit from states like NY and CA progresses over the next decade. Nearly all of our CA have left or are leaving the state when they retire.
Many others are moving to lower tax states. https://www.google.com/amp/s/www.th...c37f96d0-c991-11e9-b862-376947c3ab0e.amp.html
 
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