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
Making the Most of Home Equity: Tips for Senior Citizens
Making the most of home equity For senior citizens living on fixed incomes, the need to replace a car or do substantial home repairs can disrupt finances. Major unplanned expenses caused by illness or disability can lead to financial disaster. Fortunately, many senior citizens are sitting on a major financial asset: the equity in their…
Keeping Your Health Insurance Premiums Low
Keeping Your Health Insurance Premiums Low Health Savings Accounts (HSAs) offer tax deductions for medical expenses, and the opportunity to set up an additional retirement account. But regardless of any other positive benefit of HSAs, lower premiums are the primary reason that thousands of Americans have chosen Health Savings Accounts as the best way to…
Identity Theft: Has your name been stolen?
Identity Theft: Has your name been stolen? Identity theft—the unauthorized use of an individual’s name or personal information to obtain money or credit—is the fastest-growing white-collar crime. Most probably, more than 700,000 Americans will be victims of it this year, with costs to them averaging over $800 and 175 hours of time spent trying to…
Q & A: IRAs for your Children
Q & A: IRAs for your Children Establishing a retirement plan for a child might, initially, sound a bit strange—or at least premature. Truly, it is not. Establishing an IRA for your children or grandchildren can help them achieve financial independence in retirement and, possibly, for the rest of their lives. That claim may raise…