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Financial Planning / Tax Strategies
|Subject: Re: I May Open My Veins||Date: 1/21/2013 5:01 PM|
|Author: Wradical||Number: 117483 of 121099|
i wonder if he got that figure by the old canard of adding up all the marginal rates + sales tax (+ property tax?)
especially outrageous would be the self-employed (?) 15% FICA on the first 115K of his 45 million
Well, the 15.3% Self-employment tax rate (13.3% in 2012) is two numbers:
12.4% of Social Security and 2.9% for Medicare.
The 12.4% applies up to the FICA limit. The Medicare rate is umlimited.
Of course it's possible that some or most of his endorsement income - for use of his name, image, etc., might be characterized or reportable as a royalty, and if so, it's not self-employment income. Better yet, maybe it's payable to his trust in Bermuda.
With clients like that, there's always good possibilities.
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