The tax man cometh

[dbestpro]

Talk has increased about NBA players going overseas. which may eventually affect the Spurs.

When you work overseas as a U.S. citizen you pay US taxes less the amount of foreign taxes. Look for the IRS to consider the tax payments as salary thus still requiing the US worker abroad to pay full U.S. tax. There are workgroup exceptions, but no such exception exists for basketball players.

So, if Joe USA is payed equal to 10 mil USA dollars and another 3 mil in taxes to the foreign country, he will pay US taxes on 13 mil less the 3 mil in foreign tax. At 30% (round estimate) of 13 mil he will still owe close to 1 mil in US taxes.

[wildbill2u]

I think your taxability of the foreign earned income depends on how long you stay overseas.

However, if Obama wins the election, he intends to sock it to the rich who earn over $250,000. I doubt there will be an exception for people who can make a 3pt shot.

Increased taxes at home may make European teams even more attractive to our high-salried BB players--or coaches. (I wonder if Larry Brown wants to make another change.)