CAM NEWTON NOW OWES THE STATE OF CALIFORNIA TONS OF MONEY AFTER THE SUPER BOWL: “Losing means his effective tax rate will be a whopping 198.8%. Oh yeah, he will also pay the IRS 40.5% on his earnings.”
“In other words, Cam Newton will pay a Barack Obama-style flat tax. The rules are very simple. The government simply takes all your money. Or, in this case, more than all your money. So it’s akin to a French-style flat tax.” Perhaps that explains why he was so enraged during his disastrous press conference:
What matters if that he’ll be paying about $101,000 of extra tax simply because the game took place in California.
However, if the Super Bowl was in a city like Dallas and Miami, there would have been no additional tax.
The good news, at least for football fans, is that Cam Newton has a contract that prevented him from staying home and skipping the game. So he didn’t have any ability to respond to the confiscatory tax rate.
Many successful taxpayers, by contrast, do have flexibility and they are the job creators and investors who help decide whether states grow faster and stagnate. So while California has the ability to pillage Cam Newton, the state is basically following a suicidal fiscal policy because other people can choose to stay away.
At least for the moment; ponder the long-term implications of this headline: “Millennials have a higher opinion of socialism than of capitalism.”
What could go wrong this time?
Related: Needless to say, the Panthers’ fate on Sunday was already sealed before they entered the stadium: Obama picked them to win the Super Bowl.