
Is it any wonder that people are fleeing California due to high taxes?
In this year's Super Bowl, the Seattle Seahawks defeated the New England Patriots, 29-13.
Seattle's Quarterback (QB) is Sam Darnold, who gets paid US$178,00 for playing in the game. That's a tidy sum. But due to California's tax laws, he now owes the state U$249,000 in taxes.
That's a loss of US$71,000 that he has to pay from his own pocket.
How does that happen?
Well, California's "jock taxes" require pro athletes who don't live in the state to fork over percentages of their yearly income based on the number of days they work in California. Since Seattle is in the NFC Western Division, they play the Los Angeles Rams and San Francisco 49ers during the regular season, and they also played the Rams in the playoffs. Those games create the tax headache for Sam Darnold.
By the way, Darnold already has to pay California income tax on the pay he earned playing in games in California.
Interestingly, if the game were played outside California, he would only have to pay that state's income tax rate on his game earnings. Or if it were played in Miami Florida, for example, where there is no state income tax, he would most likely pocket all of his earnings.
What do you think of this?
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