Albert Pujols signed a $254 million contract with the Los Angeles Angels. Assuming he moves to California he will have to pay 10% in state taxes, about $2.5 million. That leaves him with $23 million left for the government to tax. At a rate of 36%, he is left with about $14.6 million. When you include property taxes, and sales tax on everything he buys, Pujols will pay nearly half his income in taxes.
If he has a good accountant, Pujols will pay less than that. He is a very charitable man, so he gets deductions for his sizeable contributions to Down Syndrome charities. I’m sure he has other deductions, like his agent’s cut of the deal, but the point is the same: it is the intent of the government (federal and local) to take half his income.
The first thing many people say, including our own Tracy Byrnes, is that a $25 million annual salary is outrageous for someone playing a game. I say Pujols deserves it. In a capitalist society, a person deserves to make as much money as someone is willing to pay them. In Pujols’s case it is clear the owner of the Angels thinks the acquisition of Pujols will increase the team’s profits by at least that much – while also adding to the value of the franchise. So I say, good for Pujols.
Unlike the targets of the Occupy protesters’ anger, it would be nearly impossible to argue that Pujols harmed others in his pursuit of his riches. He is earning this high salary because of his natural abilities and the hard work he put in to hone them. It’s like Adam Carolla said in the rant we played this week, we should be praising Pujols, using him as an example to our children. That is what you can accomplish if you find your skill and work hard at it.
President Obama has gone around the country recently saying everyone needs to pay their fair share. Even Albert Pujols is not paying enough? I illustrated that he would pay $10 million in federal income tax, while half the people pay nothing.
If the system is unfair, it’s because Pujols is paying way too much.
Maybe he should be the one protesting.
But he’s too busy working on his swing.
Stuart Varney joined FOX Business Network (FBN) as an anchor in 2007 and is the host of "Varney & Co." (9-11 AM/ET) on weekdays. Click here for more information about Stuart Varney.