rubato wrote: One popular method of using deferred compensation is for the employer to pay the whole salary but a part is paid to a second party who arranges the defferral; they recieve the whole whack that year and then pay out in installments to the employee as-arranged..... My wife can defer up to 100% of her salary and bonus, invest the deferral and make use of the principal and profits later on. Withdrawal, and thus taxation, are voluntary events and can be timed to maximize the economic convenience. If the tax system changes, and it does not matter in which direction, the ability to choose in what year money is taxed gives an unsurmountable advantage to those who can choose. If the rate goes up you withdraw more before it does, if it goes down you wait. Simple.
yrs,
rubato
Indeed it is simple - and simply not an available option for European football players AFAIK for reasons stated (club ownerships do not want to do it). I hadn't realised your wife played soccer in Europe though...
And you believe this, because???
If the highest marginal tax rate changed, it would be in their interest and they would do it. Simple as that.
People whose income is via a partnership can defer income as stated. For someone who claims to have been in the insurance business you don't know much about tax law.
As PSG (not to mention Chelsea, Manchester City, Anzhi and all other sugar-daddy clubs) are about to be reamed by Financial Fair Play rules, they have no reason to worry about this tax bracket.
Why is it that when Miley Cyrus gets naked and licks a hammer it's 'art' and 'edgy' but when I do it I'm 'drunk' and 'banned from the hardware store'?
Thanks for the gratuitous insults, rubato. Tax law has no impact at all on the sales and service of home and auto policies - I'm surprised you didn't know that? My wife's the one with the financial designations (of course, all of our designations expired three years ago) but she doesn't play football either.
By "nimrods" I assume you to be referring to football players in France - my point is that their contracts are dictated to them by the clubs and do not include provision for deferred income. However, if by "nimrods" you meant the clubs themselves (and I'm sure you will hasten to 'claim' that's what you mean), then should the French law be upheld against the corporation (owners), it seems possible the responsibility will fall upon them and the owners may then have a great interest in deferring salary compensation.
That would also be true if a real salary cap is ever put into place - like the NFL etc. the clubs will presumably offer deferred compensation to attract the topmost players as a means to evade the purpose of the cap.
Other than that, I will defer to your expertise in the tax laws of all the countries of Europe and the structure of soccer contracts
For Christianity, by identifying truth with faith, must teach-and, properly understood, does teach-that any interference with the truth is immoral. A Christian with faith has nothing to fear from the facts
Congratulations Gen'l, your eyesight appears to be improving....
I will defer to your expertise in the tax laws of all the countries of Europe and the structure of soccer contracts
Yes, he studied all of that and committed it to memory right after he completed his tour of all the restaurants in all the cities in the United States:
The only places in the US with restaurants comparable to France are New York, San Francisco, Los Angeles, Chicago, and New Orleans.
A busy man is our rube...
Last edited by Lord Jim on Wed Jan 01, 2014 1:36 am, edited 1 time in total.
Although, Meade, to be sure I would imagine that top footballers (those with the salaries high enough to matter in this context) would have some room for negotiations in their future contracts to allow for deferral of income or other devices to avoid a big tax bite. Certainly the "lesser" players would get "take it or leave" it contracts, but the ones the clubs want to sign would have certain concessions available, or they could just go to another club that wants a player with their talent.
For Christianity, by identifying truth with faith, must teach-and, properly understood, does teach-that any interference with the truth is immoral. A Christian with faith has nothing to fear from the facts
MajGenl.Meade wrote:Imagine if you will. They don't. Yet.
Well Meade, I don't know European football, but I am surprised the teams have that much power and that the top players can't just up and leave for another club to get what they want after their contracts expire. I do know something of European antitrust law, and it's pretty tough for organizations to band together and restrict competition this way. Perhaps the football clubs are exempted from antitrust law?
Well you bring in expired contracts now. When there's no contract the player can leave. In practise, a top player who really wants to leave before his contact is up (Gareth Bale for example) can make it so uncomfortable for his team (Spurs) that they end up selling him to his chosen (Real Madrid) lover. He gets 10% of the transfer fee I believe - so some 8.3million sterling poor boy - and Real Madrid get to offer him the world and sixpence and he's as happy as a pig in poop.
He wouldn't be so happy if he was at Lyons and had this additional 75% tax above the base rate to worry about, which is why the French footballers are once again upset. But I understand (or perhaps don't) that in France it can't be levied on an individual, only on a "family" which mirabile dictu is what a football team is! Shock Horror! So the question becomes, does PSG pay a gazillion francs to Ethno Crotchitch PLUS pay a 75% additional tax penalty to the state coffers - which increases their per player cost by 3/4 overnight and obviously cannot be afforded.
Maybe I've got that wrong and rubato can enlighten me? It's a rough job
For Christianity, by identifying truth with faith, must teach-and, properly understood, does teach-that any interference with the truth is immoral. A Christian with faith has nothing to fear from the facts
Those French footballers can certainly eat pizza & sip wine in outdoor cafes if they want to because, as a man who claims to have a lot of money once wrote, "The defining characteristic of affluence is free time"...
Congratulations Gen'l, your eyesight appears to be improving.... 
