Live tourneys not worth it anymore because of tax and juice?

[Damani311]

Seriously.....alot of tournies charge 5/10% juice, on top of the 4% withheld for dealers. Now with the mandatory 25% tax soon to be withheld (2008) from all 5K+ cashes, is playing live tournies even profitable? I could only imagine the luckiest of players making money, while most people breaking even.

[RandALLin]

Have you seen these poo flinging monkeys that play live?

[A_Junglen]

Was talking with Negreanu/Lederer on this subject.

This law is pending and by no means a done deal. According to Howard there are also many ways around it, even if it does get approved

[Superfluous Man]

...you know that you're supposed to pay taxes on the money you win in tournaments anyway, right? So you're basically just giving up the part you were going to pay in taxes (wink, wink) up front instead of waiting until April 15th. The 25% withholding shouldn't really have that big an effect on people who don't like the IRS sending men with guns to their houses to throw them in federal pound-me-in-the-ass prison and thus pay taxes.

[Bond18]

Leo,

I think the big issue is how much it takes out of the economy and how much it takes out of your bankroll. This could really hurt how much money will flow around not to mention make variance even harder to deal with.

[Xyven]

I actually really sorta like the 25% withholding for 5k+ cashes. It will have the biggest effect on the small winners who are beating the game but not by enough to handle so much money being pulled out of their bankroll, while leaving the fish and the big winners relatively unscathed. People will obviously have to adjust their bankroll requirements upwards but really are you going to complain about playing with a lower RoR?

[stealthmunk]

[ QUOTE ]
I actually really sorta like the 25% withholding for 5k+ cashes. It will have the biggest effect on the small winners who are beating the game but not by enough to handle so much money being pulled out of their bankroll, while leaving the fish and the big winners relatively unscathed. People will obviously have to adjust their bankroll requirements upwards but really are you going to complain about playing with a lower RoR?

[/ QUOTE ]

Are you retarded or levelling?

[Xyven]

Please explain to me how something that forces winning players (even moderate winning players) out of the game is a bad thing. They don't have a high enough ROI to keep playing a year of tourneys with 25% withholding so they play fewer events. The big fish aren't affected much because they rarely win/cash and are unlikely to get forced out of action because they're playing from their own pockets, not their profits. Big winners will adjust by having bigger bankrolls and will enjoy softer fields because the moderate winners are gone leaving the fish and the pros.

If you're a solid MTT player there are good sideeffects of this law. It sucks for the small winners and the guys in the big cash games (because the fish who wins a million bucks in a tourney has 1/4 of that withheld), but not for the MTT pro, of which many people in this forum are.


edit: I should clarify that I mispoke in my first post. Idon't really "like" this withholding, but there are definite benefits to it.

[Damani311]

I hear there's no actual law that forces you to pay taxes....prove me wrong?

Government scare tactics to pay off the interest on the money they buy from private money production system.

That's right...we RENT our money from private bankers with interest....so tell me how that's going to get us out of debt as a nation...(US)

Flame away [img]/images/graemlins/wink.gif[/img]

[NYWalker]

It actually forces players to play for top four spots in most medium buy-in tournaments ($1K or less) or play for FT for 2K+ tournaments.