Regardless what a punk Carolina Panthers’ quarterback Cam Newton may or may not be, the ugly news that he will owe $137,900 in taxes — for losing the Super Bowl – shouldn’t be the thanks he gets.
The thanks is courtesy of California’s highest-in-the-nation tax rate of 13.3 percent, known as the “jock tax” – the nonresident income taxes that states and cities enforce on athletes performing in their jurisdictions.
As Kurt Bedenhausen explained in Forbes last week, “Newton will pay California 86.3% of his Super Bowl earnings if the Panthers win. Losing means his effective tax rate will be a whopping 172.2%. Oh yeah, he will also pay the IRS 40.5% on his earnings.” This… Read More