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Poker Champ Pius Heinz Pays No Taxes on $8.7 Million There's Herman Cain's 9-9-9 Plan. There's the Buffett Rule.

But of all the tax plans we've heard lately, Pius Heinz's All for Me deal is our favorite.

Heinz is the German ace who recently won the World Series of Poker in Las Vegas, earning $8,715,636 -- tax-free.

Under the U.S.-Germany Tax Treaty, Germans' gambling income earned on U.S. soil isn't taxed by the IRS, reports Taxabletalk.com. Back in Germany, gambling winnings are also tax-exempt. So Heinz won't have to ante up one penny to any government, while most of his competition is paying a full house or more.

"All power to him," Taxable Talk author Russell Fox told DailyFinance.

Second-place finisher Martin Stazko of the Czech Republic doesn't owe anything to Uncle Sam for his $5,433,086 in winnings, but back home, he'll cough up $814,963.

Third-place finisher Ben Lamb of Tulsa, Okla., won $4,021,038 in the Texas Hold 'Em tournament, but he won't hold 'em all once the IRS is done with him. Fox estimated he'll fork over $1,524,011 in taxes.

Fourth-place finisher Mark Gianetti of Las Vegas will surrender $1,048,642, or 35%, of $3,012,700.

The biggest winner/loser of them all is Eoghan O'Dea of Dublin, Ireland. The sixth-place finisher will have to fold on 40% of his $1,720,331. Amateur Irish gamblers get to keep all their winnings, but O'Dea is a professional, so Ireland's Office of Revenue Commissioners gets a $695,018 share of his green.

But he got off easy compared to 2008 poker champ Peter Eastgate. As a citizen of Denmark, Eastgate was flushed out 73% of his $9,152,416. Comparatively, "U.S. tax law looks very friendly," Fox said.

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Steve

this is just absolutely rediculous!!! if you want to take money out of the us you should get taxed out the arse!!... no wonder businesses move to other countries....what a effed up system..

November 18 2011 at 2:24 PM Report abuse -1 rate up rate down Reply
1 reply to Steve's comment
mxoverdriv

By holding the World Poker Tournament in the US they are bringing money INTO THE US. Each of these contestants paid a hefty fee for the priviledge of joining the tourney. The tourney brings TONS of tourists and players along with their family members to Vegas and some of the foreign visitors take that opportunity to see more of America while they are here. Quite frankly, we should have no income tax in our whole country. A point of sales tax would be the most fair tax. Everyone would pay the same and our tax would be adjusted by our income limitations. Make little money, purchase less and pay little in taxes. Large income, purchase much more and pay a lot in taxes. But everyone has the same tax rate and everyone has some skin in the game. It is far past time that 47% pay nothing...and most of those get massive tax credits which more than cover their payroll and state taxes!

November 19 2011 at 10:22 AM Report abuse +1 rate up rate down Reply
notawhiner12

So what. He from Germany. You Dems always whine. 55% of Americans pay zero Federal tax. Funny how the percentage lines up with the amount of people who vote in federal elections.

Do want to tax all Germans because they visited here. You make me sick

November 18 2011 at 11:25 AM Report abuse rate up rate down Reply
1 reply to notawhiner12's comment
amf

Wrong. On so many counts.

47%, not 55%, pay no federal INCOME tax. They still pay the 7.65% payroll tax on wages UNDER $108,000/year (and their employer pays 7.65% on their behalf, which is just money the worker might have otherwise been given, for a total of 15.3%).

Those people also pay state income tax, state/local sales tax, and local property tax, all of which are regressive (as is the federal payroll tax).

And the reason 47% pay no federal income tax is that Bush took 10% off the tax rolls with his tax cuts, which Republicans regard as sacred, and another 20% were taken off the tax rolls when the economy tanked in '08 under Bush's watch (and despite the promises he made that his tax cuts would lead to prosperity and job creation).

Finally, even if your suggestion is correct that the 53% who pay federal income tax are the ones who vote, 53% of that group voted Democrat for president in '08, so your fuzzy math doesn't tell us anything.

I for one would rather have the 90s economy, with a top MARGINAL federal income tax rate of 39.6% (which Obama has proposed reverting to from Bush's 35%, which didn't create any of the promised jobs anyway), a balanced budget, and annual surpluses that were paying down the debt. Or even the 80s economy, when the infallible Reagan had a top marginal federal income tax rate of 50% (!!) for his first six years on the job.

I'm amazed that the Republican party, supposedly the party of responsibility and balanced budgets, refuses to pay for over $2 trillion in bills from two wars, one of which was unnecessary and both of which were terribly mismanaged by those at the top (thank God that our military service members made the best of such bad leadership in Washington, D.C.), to say nothing of a Medicare prescription drug expansion that nobody called socialist (and even "conservative" stalwarts like Newt Gingrich supported).

What you should be sick about is how Americans are already considering going back to the mindless deregulation (i.e. lack of oversight, i.e. lack of responsibility) that got us into this mess in the first place.

Yeah, Democrats (and Bush) shouldn't have been pushing for everyone to own a home even if they couldn't afford it, but the banks and financial institutions (and their Republican worshipers) supposedly have the expertise to know better than to give out loans they knew couldn't be repaid, loans which were then sold, in parts, on an unsupervised derivatives market, as if any of that had anything to do with American prosperity, and then be bailed out by the American taxpayer (socialized risk, private profit! that's free market capitalism!) for their abysmal failure to be the very private sector leaders they claim to be.

You're right, it's enough to make one sick.

November 18 2011 at 10:08 PM Report abuse -1 rate up rate down Reply
1 reply to amf's comment
mxoverdriv

The 47% who pay no federal income tax also get the EARNED INCOME CREDIT! Those credits cover their payroll taxes, meaning they are paying nothing into their own SS and Medicare, but they will still receive both when they retire! If you make poor personal life choices or have no work ethics, our government rewards you! Work hard, sacrifce, save and our government punishes you for your efforts!

Bush's tax cuts did take many off the tax rolls, but they also increased federal revenues from $1.78 trillion in 2003 to $2.56 trillion in 2007 and led to 52 consecutive months of economic growth. Not until Jan. 2007, when Democrats took control of Congress, did things began to deteriorate and by early 2008 we entered a recession which had NOTHING at all to do with the Bush tax cuts. Without those cuts, many more people would have been in financial trouble sooner. The problem was not that Bush allowed American's to keep more of the money they earn, the problem was that both parties have been on spending sprees for decades and Americans have followed suit. Both groups spent on credit, yet only our citizens were forced to cut spending when the recession hit. Gov. debt and deficits are out of control and Obama insists uponmassively increasing both!
Republican deregulation of Wall Street or banks causing this problem is nonsense! Both were massively regulated, but the Gov. regulators ignored the lapses. There should be some limited gov. regulations, but true free markets will regulate themselves. If someone sells an inferior product or overcharges their customerswill buy elsewhere. It is only when government steps in with guaranteed bailouts for failing businesses do failing business models thrive.
By controlling lending regulations, VIA the Clinton housing intiative mostly, our banks and financial institutions were FORCED to give loans to those they knew would never pay it back. Gov. backed Fannie and Freddie allowed bundling and selling ofthose worthless loans. Cheap, easy credit encouraged citizens to live beyond their means. Gov. regulations allowing refinancing for more than a home was worth allowed most to pay off those credit cards. Then, instead of cutting expenses, people charged their cards to the max again so that when gas prices took a big jump, many had to chose between their house payment or gas. The extended recession, the government regulations leading to the housing bubble and poor personal choices left many losing their homes, their jobs and our government and people like you believe that MORE government central planning, even less money in the hands of job producers and more government deficit spending are the answer? INSANITY!

November 19 2011 at 11:25 AM Report abuse rate up rate down
spiguyone

Heinz fits the republican plan pay no or little taxes. I'm sure he will create a lot of jobs.

November 17 2011 at 2:09 PM Report abuse rate up rate down Reply
maloontransllc

Still not a bad haul these guys made having fun and doing what they love. As far as all the comments about Obama and the critters in congress... Well Vote the bums out of office that is our right. The system has been corrupt my entire life so whats new !!

November 17 2011 at 9:40 AM Report abuse rate up rate down Reply
1 reply to maloontransllc's comment
mxoverdriv

What is new, is that most American citizens are now awake and aware of the corruption that we have allowed to thrive in DC and we are determined to vote them out! 2010 was a good start, but it is going to require several more housecleanings before the job is complete.

November 19 2011 at 11:27 AM Report abuse rate up rate down Reply
Dan Harding

I read that the U.S. has over 86,000 pages of tax code, and yet a gambler from germany gets to walk away tax free with all his winnings. It is no wonder the people of america are getting more pissed off at our congress critters.

November 17 2011 at 8:51 AM Report abuse rate up rate down Reply
swtsumit

And all these comments came from an article about a poor, now rich German poker player who was lucky enough to ("WINNING") and not pay taxes(WINNING") Dah!!! Only in The Great USA . Too many p----sed off people who have a whole lot to say but do nothing to help themselves

November 16 2011 at 8:52 PM Report abuse +1 rate up rate down Reply
ryanslaws

0-0-0 federal tax rates, fascinating concept.

By definition, no $$ for salaries for employees of the Executive Department. Everything from the President to the custodians that clean the government office buildings become volunteer-only jobs. That pretty much should take care of all future government pension issues: A 100% lifetime pension based on a zero-dollar paycheck is a pension we all can afford.

No $$ for defense so by definition the entire Armed Forces goes away. What armed forces we have is all-volunteer and must be equipped by private donations or by the soldiers themselves (something akin to bring your own musket and meet in the town commons to repel the British invaders??).

No $$ for the Judicial Department so the entire federal court system goes away, including SCOTUS (given some of its recent decisions, a lot of us WISH the SCOTUS would go away, so maybe that's not too bad).

No $$ for the Legislative branch, so the Senate, the House, and all their myriad staffers also become unpaid positions, or get paid by the legislator personally. Only the wealthy could afford to serve -- sort of like it is now I guess. Since they'd have to use their own money to pay for their own office and staff, any Lobbiest willing to pay for a Senator's office and staff would own the keys to the Kingdom -- again sort of like it is now, I guess. So no really big change for the Legislative branch, it would still be bought and paid for by outside interests.

The result would be interesting, at least.

November 16 2011 at 8:17 PM Report abuse +1 rate up rate down Reply
J

So if you aren't paying taxes according to Ron Paul... how do you pay for anything?

November 16 2011 at 7:10 PM Report abuse rate up rate down Reply
1 reply to J's comment
mxoverdriv

I am absolutely NOT a Ron Paul fan and do believe in limited taxation. That said, before our government taxed our every breath 24/7, private businesses ran just fine and produced what we needed just fine. If government did not keep their finger in every pie, private citizens would produce, then sell, what other citizens needed...and support themselves by doing so. Roads were built before government taxes were implemented. Children were educated before government taxes were implemented People had food on their tables before government taxes were implemented. The very fact that you believe none of those things would happen without government just goes to show how deeply we have allowed our government to force us into dependence upon them...and the only ones who benefit from that are those involved in government!

November 19 2011 at 11:33 AM Report abuse rate up rate down Reply
Bill Boll

Hey now if we elect Ron Paul whos goal is 0 -0-0 for taxes none of us will burdened by income tax ever again! He wants to end the fed then the IRS .Goggle Ron Paul for the factts ,Great game Mr. Hienz!

November 16 2011 at 7:01 PM Report abuse -2 rate up rate down Reply
billyjoeobama

More Hope and change right before your eyes.

November 16 2011 at 6:59 PM Report abuse rate up rate down Reply
1 reply to billyjoeobama's comment
mgw1966

billyjoe, what an idiot u are. Bama is the worst president in history. Typical blacm man runnin his mouth and maken promises he never intended to keep. I believe they call that running the game. He is a disgrace to the country and world. This is why we have lost all respect from our fellow nations, who now call the usa a joke. wake up and get a clue.

July 09 2012 at 2:31 AM Report abuse rate up rate down Reply