7 months ago, I wrote this post: @nealmcspadden/btc-monetization-stories-part-73
And this morning, I'm in a seminar with the IRS about what they call "Virtual Currency." The presenters from the IRS have actually advanced quite a bit over the years and they understand the basics of crypto.
One of the presenters mentioned Russell Okung as an example of how you can earn crypto in place of wages.
This actually made me stop in my tracks for a minute.
Receiving half your salary in $BTC seems pretty bullish. But when you think about the tax picture, it's all-fucking-in.
How is half equal to all?
Taxes.
I don't know what Okung makes. I do have professional athlete clients though, and I've seen their tax pictures.
So at a minimum, he's paying 37% on that money to the IRS. Possibly more with net investment income taxes (Obamacare taxes). And unless he's been clever, his effective rate is actually hire after paying agents and managers.
He's also paying state taxes and local in all the different locations he play, which can range from a couple percent up to 13%.
And oh, wait, a lot of cities are greedy pigs and have created "jock taxes" which are extra taxes on performance type activities like football games.
So add it all together, how much do you get? Pretty damn close to half.
Why half in $BTC? Because the other half is going to taxes. Is he going to sell $BTC for $USD? No, that's just getting money in $USD with extra steps.
Okung's tax home pay is almost entirely $BTC.
This guy is all in.