The government cash grab blitzes the NFL

Granted that some might shed few tears for rich jocks, especially playing for an organization that has made the tax break a crucial part of its viability. However, punishing the players, no matter how wealthy, takes a lot of nerve, especially when the money goes to no good use anyway.

Some of you may be thinking this analysis is unfair because California isn’t imposing a 198.8 percent tax on his Super Bowl earnings. Instead, the state is taxing his entire annual income based on the number of days he’s working in the state.

But that’s not the economically relevant issue. What matters is that he’ll be paying about $101,000 of extra tax simply because the game took place in California.

However, if the Super Bowl was in a city like Dallas and Miami, there would have been no additional tax.

Source: Losing the Super Bowl Twice: California Taxes Cam Newton at 200% | Foundation for Economic Education