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Originally Posted by sabotai
Why does he only keep $400,000 (other than the obvious federal income tax)?
I wonder how many of the previous 5-day champions and winners of the Tournament of Champions would have been able to do what Ken has done. I'd bet at least several would have. It'd be interesting to see who, and when, the next "Ken" will be.
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Total taxes will be ~50%. Mormon tithe is 10%.
EDIT: I was going to post an edit that the 50% might be a bit high. Maybe not though. He pays 35% federal tax on income over %300,000. Assuming he makes about 87k, that makes $800,000 of his earnings taxed at this rate. Call it 34% average, since most of the rest would be taxed at 33%.
The 87k assumption had a purpose. That would mean that he pays no more social security on this money. Lucky, since he would likely have to pay the self-employment rate of 12.4%, since no employer paid the other half.
He pays 3% for medicare (I am assuming this money is all taxed at the self employment rate).
I am unclear whether he owes income tax in Utah or California. The top rate in Utah is 7%, California 9.3. Lets go with Utah.
So, total tax burden here is 44%, unless he pays cali state tax, in which case its 46.3.