The MN Organization of Blogs

CARPE DIEM: After Taxes, World Series Winner Finishes Second PDF Print E-mail
Written by The Mayor   
Thursday, 13 November 2008 13:43

The World Series of Poker ended this week at the Rio Hotel and Casino in Las Vegas, and Denmark's Peter Eastgate (pictured above) became the youngest-ever winner of the world title. He is very much the new breed of player: 22 years old, Danish, mathematically brilliant, who gave up a fledgling career in accounting to "turn pro."
 
As the winner of the main event Peter won about $9.2 million, but would he actually end up with all that money?

Denmark's tax rate is 45% on the first 4 million Danish Kroners (about $680,000) and 75% on income above that. Mr. Eastgate will owe about $6.7 million in Danish taxes, and will get to keep only $2.5 million of his winnings—just 27.23% of his prize. In other words, he faces an effective tax rate of 72.77%. Ouch.

Ivan Demidov of Moscow finished second and won $5.8 million. Russia has a 13% flat tax rate, so Mr. Demidov will owe about $755,247 to the State Taxation Service of Russia. After taxes, Ivan will still have more than $5 million, more than twice as much as the first place Danish winner.

MP: This is a no-brainer, Peter should move from Denmark to Moscow.


Add this page to your favorite Social Bookmarking websites
Digg! Reddit! Del.icio.us! Mixx! Technorati! StumbleUpon! Newsvine! Ma.gnolia! BlogRolling! Free Joomla PHP extensions, software, information and tutorials.