Monday, June 30, 2008

Tiger Woods and Barack Obama's Tax Plans

Tiger would not have fared very well under Obama's two major tax proposals. Instead of keeping 57% and paying 43%, he would have kept only 43% and paid 57%. But Hey!...Tiger Woods doesn't really "deserve" to keep any of that money anyway...he didn't really earn it? Did he?

Link HT: Tax Prof
It was fortunate for Tiger that his most-recent U.S. Open win occurred in 2008. Under twin tax proposals from Obama to 1) remove the "cap" from Social Security taxes for individuals earning over $250,000, a plateau Tiger has long since surpassed in 2008, and 2) eliminate the "Bush" tax cuts, thereby raising the top marginal federal income tax rate to 39.6 percent, Tiger's taxes on his winner's check would have increased to approximately $776,000, a boost of almost $190,000. Instead of Tiger keeping 57 percent of his earnings and the government taking 43 percent, under the twin Obama tax proposals, Tiger's federal and California taxes would have amounted to 57 percent of his winnings, leaving Tiger with just 43 percent.