In one of 2012’s biggest sports deals, star NFL quarterback Peyton Manning signed a $96 million, five-year deal with the Denver Broncos. Released by the Indianapolis Colts to free up some capital, Manning was courted and sought by multiple teams.
One of those teams was the San Francisco 49ers, and when Super Bowl-winning quarterback Eli Manning’s older brother looked took a pass on the team from Northern California, anti-tax activists sought to turn his football deal into political football.
Activists at the California Taxpayers Association are using Peyton Manning’s deal to highlight California’s tax rates and highlight Gov. Jerry Brown’s proposed tax measure to increase taxes on the wealthy.
California’s highest earners could send 13.3 percent of their income to Sacramento if Brown’s measure passes. The top rate currently stands at 10.3 percent. Colorado’s top tax rate stands at much smaller 4.63 percent.
Whether the tax rates played a role in Manning’s decision isn’t known, but the CTA estimated that without endorsement or other income he’d pay only $4 million of his $96 million in state income tax playing for the Broncos.
If he became a 49er, he’d pay either $8.9 million or $11.5 million in state income tax, depending on whether voters give Gov. Brown’s proposed tax measure the nod.
No matter which team he ended up playing for, whoever signed Manning was set to take on a big risk. The 37-year old star quarterback missed the entire 2011 season. He recovered after having his third neck surgery in less than two years.
But Manning will reap much reward playing in Colorado. The state is ranked the 39th lowest tax burdened state in the country, according to the Tax Foundation. He would have ended up with even more money playing for the Miami Dolphins. Florida has no state income tax.
You may not be a star quarterback, but the IRS could treat you like one with the right representation. Finding yourself in the gridiron with a team of IRS agents isn’t fun, but hiring a tax attorney or tax professional will make it more likely that you’ll score a couple financial touchdowns of your own, which is a tax break everyone could
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