Athletes Could See Big Tax Savings With Trump Proposals
It’s no secret that Donald Trump’s proposed tax plans would definitely benefit the nations’ wealthiest individuals. The president elect has made it clear he wants to overhaul our country’s tax system and his stated proposals indicate that the wealthy will see a healthy increase in the amount of money they get to keep.
Among the wealthy that will likely be saving a lot of money are professional athletes. Of course, almost all professional athletes make a very comfortable living, but certain of the top athletes in their given sports really stand to benefit from having Trump in the White House. First off, a large percentage of all professional athletes currently fall into the top tax bracket, which is more than 40 percent after adding the ACA net investment income tax of 3.8 percent. Under Trump that percentage would fall to 33 percent.
Here’s just one example of how much one star athlete could save thanks to the new president’s tax plans. Cleveland Cavaliers star LeBron James has a three-year $99 million deal. That means he would save an estimated $2.3 million every year on his salary alone. Add to that the savings he would receive on his endorsement earnings, which would be about $13.8 million a year, and James is likely to save more than $16 million annually in taxes.
There is a downside, as Trump has also proposed capping itemized deductions at $200,000, which means anything over that amount, which is entirely possible for James, he would not be able to deduct, thus reducing his total deductions amount. However, he would still likely have a total savings in excess of $15 million. James might have endorsed Hillary Clinton, but he will save more money with Trump.
http://www.forbes.com/sites/kurtbadenhausen/2016/11/10/trump-tax-plan-could-save-lebron-james-over-15-million-per-year/#731ad3552339
You Must Give Up These 5 Things to Be Debt Free
You Must Give Up These 5 Things to Be Debt Free No matter who you are, almost everyone carries some debt. According to some recent statistics from ValuePenguin.com, the total U.S. consumer debt is $3.4 trillion. Additionally, nearly 40 percent of all American households have some level of credit card debt, while the average household…
Give These New Hobbies a Try in 2017
Give These New Hobbies a Try in 2017 Are you looking for something new to try this year? You better get going because the year is practically half over. If you’re tired of all the old, run-of-the-mill hobbies and you want a new adventure to pass some time, then there are several options you should…
Simple Ways to Build a Better Tax Plan
Simple Ways to Build a Better Tax Plan Does it seem possible that more than two months have already passed since the 2017 tax season ended? That means the 2018 tax season is not that far away, and now is a good time to make your tax plan for this year’s return. Tax plans come…
Will One of Trump’s Top Tax Breaks Get the Axe?
As the new president and his administration continue to tout their big plans for a major tax overhaul in the U.S., it remains to be seen if the proposals will get passed in the House and Senate. While both branches of government are all for tax code reform, there are still differences that must be…