Quote:
Originally Posted by BobC
And that tax factor can possibly work to the player's benefit as well. You get $10M in one year, you get so much taxed at 10%, then so much taxed at 12%, and so on per the federal tax brackets in place up to where the balance of that $10M salary all gets taxed at the current top federal tax rate of 37%. Break that into ten years of $1M of salary though, and now you have 10 times the amount of salary being taxed at 10% instead of 37%, 10 times the amount taxed at 12% versus 37%, and so on. Unfortunately some of that savings is offset by the additional social security tax the player will also have to pay each of 10 years, but I believe the player still comes out ahead federal tax-wise by extending their salary through deferral.
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very good point.
In the end it was a two decided agreement between the team and player so at the time it was good for each.
Potentially looking back maybe not
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Thanks all
Jeff Kuhr
https://www.flickr.com/photos/144250058@N05/
Looking for
1920 Heading Home Ruth Cards
1933 Uncle Jacks Candy Babe Ruth Card
1921 Frederick Foto Ruth
Joe Jackson Cards 1916 Advertising Backs
1910 Old Mills Joe Jackson
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1911 Pinkerton Joe Jackson
Shoeless Joe Jackson Autograph
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