New French Tax Law could force PSG to pay Ibra $61 million gross next year

According to a PSG source talking to Grant Wahl, Ibra's contract requires him to be paid 15 million net of tax, and a new French Tax law going into effect in 2013 stipulates than anyone making more than a million euros a year will have 75% of their earnings taxed...Which means that PSG would have to pay Ibra 61 million dollars gross next year, for him to get the 15 million he is guaranteed

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When will it be my turn

How is Jibers posting when he's banned?

French tax code will be the death of the PSG project and league.

Breaking News: PSG to to buy out the Government.

Great Leader Sprucenuce wrote:Breaking News: PSG to to buy out the Government.

Mole

'French Tax law going into effect in 2013 stipulates than anyone making more than a million euros a year will have 75% of their earnings taxed'

i guess it won't affect anyone, only psg from ligue 1 cause i guess that the deduction is applied only if your salary after deduction would be >=1 mil...
Let's say if someone has 1,001 million wage.. after taxes : 25000? Not, it will be 1 million.. At least this makes sense, otherwise someone with 0,99 million will have no deduction and would make more than the one with 1 million salary.. I don't think that this law is good at all because the deduction should be directly proportional with the earning, not a constant like 75/100.

nah it doesnt work that way, you cant get a tax deduction on incurred taxes

The 75% is probably a marginal rate for the earnings above 1 million euros.

Hope TS leaves

Tax is not as simple as the "a percentage of total said yearly salary", plus there are plenty things that can be deducted and rearranged and categorised into many other formats to reduce his tax base.

I hugely doubt that that 15m net is pure wage income and not comprised of a bunch of other categories like gains, benefits or payments made from some sports agency company he's probably set up

tuddor wrote:'French Tax law going into effect in 2013 stipulates than anyone making more than a million euros a year will have 75% of their earnings taxed'

i guess it won't affect anyone, only psg from ligue 1 cause i guess that the deduction is applied only if your salary after deduction would be >=1 mil...
Let's say if someone has 1,001 million wage.. after taxes : 25000? Not, it will be 1 million.. At least this makes sense, otherwise someone with 0,99 million will have no deduction and would make more than the one with 1 million salary.. I don't think that this law is good at all because the deduction should be directly proportional with the earning, not a constant like 75/100.

That's why income tax is incremental or w/e the most fitting word is.

For example, and these figures are pulled out of my top hat:

0 - 10%
30,000 - 33%
60,000 - 50%
100,000 - 70%

This means that someone who earns 200,000 actually needs to pay 10% of 30,000, 33% of the difference between 60k and 30k (10,000 k), 50% of 60k-100k and 70% of anything above that.

So someone earning 200,000 pays 103,000 and not 140,000.

The reason it's not directly proportional is that it'd leave poor families without any income for themselves and rich families with too much money for their own good.

BarrileteCosmico wrote:How is Jibers posting when he's banned?

French tax code will be the death of the PSG project and league.

The French tax code will be the death of France itself.

only idiots will tax directly proportional. Although there are many other parameters, not just a pure percentage. Give or take, the uncertainty itself can also mess up the curve

kiranr wrote:
The French tax code will be the death of France itself.

Huh why do you say that?

The "happiest" (I'm not going to debate the finer details but anyone who's lived in a high tax country will know) countries are the "high" tax countries - Scandinavia and Benelux.

The degree of socialization in Frances requires high taxes - new mothers have the option of maternity leave (paid of course) or to get a government nanny so they can continue their careers.

I'm not even Dutch and I get paid to go to University and will incur a study debt of around 18,000€ at the end of my studies. If I had studied in the US I would be at least $120,000 in debt.

Phritz wrote:

Huh why do you say that?

The "happiest" (I'm not going to debate the finer details but anyone who's lived in a high tax country will know) countries are the "high" tax countries - Scandinavia and Benelux.

The degree of socialization in Frances requires high taxes - new mothers have the option of maternity leave (paid of course) or to get a government nanny so they can continue their careers.

I'm not even Dutch and I get paid to go to University and will incur a study debt of around 18,000€ at the end of my studies. If I had studied in the US I would be at least $120,000 in debt.

I don't know how the happiness index is calculated, but on a basic level, increasing taxes is not the way to cut the fiscal deficit or reduce government debt levels as it will slow growth a lot. That is why i said that.

Just burned my tongue while eating a hot pocket

kiranr wrote:
I don't know how the happiness index is calculated, but on a basic level, increasing taxes is not the way to cut the fiscal deficit or reduce government debt levels as it will slow growth a lot. That is why i said that.

Where have I heard this before...

Spoiler:

the french taxes is higher than the scandinavian ones i think

however, i live in sweden and i can tell you that taxes makes everyones lives easier, free healthcare, school, water etc. alot less poverty aswell compared to other countries