NFL legend Ray Lewis spent nearly two decades playing the position of linebacker with the passion and energy that ranks with Dick Butkus, Ray Nitschke and Mike Singletary.
FOX Business caught up with the former Baltimore Raven to discuss why so many young professional athletes, after making millions of dollars, end up dead broke.
Other than the normal reasons which are widely reported and openly visible, like the temptations materialism brings, such as exotic cars and mega mansions, one hidden, much less talked about reason is given, a reason that big government progressive leftists would love to keep under wraps — confiscatory income taxes.
“Everybody’s not signing a $20 million contract. Some guys are coming in and their signing bonus is $2 million,” Lewis told FOXBusiness.com. “At a 39.5% [tax bracket], you break that down, you may walk out with $1.4 million. So now you have to start managing that, but before you start managing that, you have to pay back everything you’ve spent. And it shocks the heck out of people when they racked up charges and it’s $250,000 already.”
If the young athlete is fortunate enough to play in a state like Washington, Texas or Florida, the income tax stops at the nearly 40 percent Lewis states. However, if he happens to play in a state like California, which sports a whopping 13.3 percent top tax rate, combined federal and state government takes more than one-half of income earned.
Think about it. By the time greedy government takes their cut, the athlete is already more than one-half broke. Add that to poor money management decisions, temptations, and youthful indiscretions, it’s no wonder why so many end up bankrupt.