Millionaire tax and impact on NIL/Coaching staffs looks like a boom for SEC schools

Boon?

All income over $600k is taxed at 37.5%, add that to the 14% in CA and other states and they will be paying over 50% income tax. Welcome to communist shitholes; every one of them.

Must be why SEC state are trying to exempt the NIL tax. Recruiting.

Don’t mean to sound like a smart arse but this is the state of Washington. Had -0- state income tax and implemented tax and yes it’s excessive. But I don’t think WA is some hotbed for talent or college football. Why would it help the SEC?

quote:

---

All income over $600k is taxed at 37.5%, add that to the 14% in CA and other states and they will be paying over 50% income tax. Welcome to communist shitholes; every one of them.

---

Not that simple. It’s graduated. No tax from zero up to the number that is the max with no tax. Then the next bracket at that % and then the next and the next until you get to the maximum tax bracket and only money made over that amount is taxed at 37.5%. You end up with an “effective tax”. If you make $10M a year, yeah, figure on about 37%. But if you make that $600K per year, the effective tax is more like 27% or so. (After re-reading your post, I see where you say “over $600K. My bad, but the point remains. It’s complex.)

That’s important for the athletes making about $600K per year in NIL and shared revenue.

But that Federal rate does NOT include FICA, and social security tax and the required health insurance. Good luck getting Medicaid when your yearly income is $600K. Current BCBS rates are about $900/month. Add a child to it and that turns into $1,800/month!!

Lots of surprises in store for those who think they can spend that money like days of old when it was all under the table.

Now, with the IRS paying closer attention (they used to look the other way), don’t think for a minute anyone caught giving an athlete money under the table won’t be charged by the IRS as well. The giver for unreported income given and the taker for tax evasion.

Mark my word, student athletes will be employees of the universities within a few years. They will want it. Once that happens, no CBA needed. Just put it in the highly compensated employee contract.

This is way to much to think about when it comes to college sports. Jeez