jock tax

The median household pays more taxes in Texas than in California.

In this episode, Trishul and Aaron explore different state and local tax rates across the country. In addition to state income taxes, they look at property taxes, sales taxes, and excise taxes on goods such as on gas, alcohol, and tobacco. While income taxes are consistently progressive in the states that actually charge an income tax, most of the other taxes are regressive when compared to income. The overall impact is that taxes end up disproportionately burdening the poor, which has led to greater inequality over time.

Episode References

Who Pays?
State Income Tax Brackets
States with Highest and Lowest Taxes
New York State Tax Profile
California State Tax
Sales and Use Tax Rates
Excise Tax
Finnish Speeding Ticket Based on Income
Taxation of Muni Bonds

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Bay Area Financial Planner with GraystoneAdvisor.com, and Trishul is an East Coast Wealth Manager (InvestingForever.com). MindMoneySpectrum.com and YouTube.

Listen as I explore the 3 tax planning opportunities I personally missed and continue to see NFL and MLB athletes missing every year. This is money that should be in your pocket that you are missing out on.

1. The Jock Tax - Every time you visit another state to play a game, you pay state and local taxes according to however your team calculates payroll. The problem is they sometimes ignore training camp, minicamp, injured reserve and possibly cost you a lot in taxes. Recalculating your “duty days” can save a ton of money throughout your career.         
2. Individual 401k - Deferring your endorsement income (think trading card deals, appearances, endorsements) can save up to $22,800 every year for NFL Players. This adds up over a career.
3. Roth IRAs - I go into detail how much my advisors cost me by missing non-deductible Roth Conversion strategies. Missing this simple strategy is evidence of just plain bad tax planning.

Go check your financial accounts and if you don’t have a Roth IRA account and Individual 401k account, you are getting poor tax planning from your advisors. Time to move on and get a team that can actually allow you to keep more money in your pocket.

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