Simple, the money. Follow the money. The enviable income of a top PGA Tour pro serves as a great example of what will happen with Barack Obama's proposed tax plan. For an example let's look at this week's tournament, the Justin Timberlake Shriners Hospital for Children Open. The winner receives $738,000.00, a good chunk of change, but by no means on the higher end of the PGA scale. Obama proposes a minimum 39% federal tax whack from that guy's wallet. The winner's best case scenario after paying Uncle Sam leaves him with $450,180.00. Still not chump change, but pay the caddie his 10% winning fee. Now it's $376,380.00 after tipping his Tonto $73,800.00. Next in line are the state and local tax collectors. We'll figure 15% to be fair and advise him to move to a state with no income tax like many have done. $110,700.00 to the locals leaves the poor bastard with a measly $265,680.00 minus his instructor, psychologist, accountant, media rep, hotels, planes, day care and golf balls. Oops, balls are gratis.
I'm not advocating that we feel too sorry for the poor pro. I'm just pointing out what paying taxes will be like in the higher echelon of earners. $738,000.00 just doesn't go as far as it used to. Additionally, don't be so sure that you'll escape the tax grab because you don't make near as much as Joe Pro. Obama said 95% of the population won't have their taxes increased. What he didn't say was that 30-40% of Americans don't pay ANY taxes at all. So, the 5% that will get hiked may just include you as a part of the now smaller tax paying pool.
I'm not endorsing any candidate. In fact, I'm still among the undecided. I haven't made $738,000.00 yet this year so my choice isn't as clear. I'm just trying to shed a little light on the stupefying numbers we see everyday and show how they relate in the real world.
Go Red Sox !!!