The Obama Strategery

The Bolt Incentive

The Telegraph:

Since April, foreign sports stars competing in Britain are liable for a top rate of income tax of 50 per cent but, controversially, the tax is charged not just on the money they earn in Britain but on a proportion of their worldwide sponsorship income.

That is utterly insane. Think about the math: It's possible for the British government to levy an effective tax rate of over 100% on the earnings made by a foreign athlete in Britain!

HM Revenue & Customs bases its charge on what proportion of an athlete's competitions take place in Britain. An athlete competing in 10 events globally with one of them held in Britain could be charged one 10th of his worldwide earnings at a top rate of 50 per cent.

In the case of Bolt, that would mean a potentially colossal tax bill that could outweigh any prize money or appearance fee he earns from racing in Britain.

Link via Michelle Malkin.


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