The latest online poker player to come into WSOP millions doesn’t have to pay any tax on his winnings. Of all the tax plans out there, including the Buffet Rule and the 9-9-9 devised by Herman Cain, Pius Heinz’s tax plans are the most fantastic. It may be recalled that Heinz, a 22-year-old college student from Germany, recently won $8.7 million at the final tables of the WSOP Main Event. The most wonderful thing about these winnings is that they are absolutely tax free.
According to a tax treaty signed by Germany and the US, any income that a German earns in the US is tax free. A report in Taxabletalk.com states that any jackpot won during gambling activities even in Germany is not taxed. This simply means that Heinz doesn’t have to pay even a single penny of his WSOP millions to the government of Germany.
The story, however, is quite different for Heinz’s opponents, who also won significant sums of cash. Martin Stazko, a professional poker player from the Czech Republic, who finished second, doesn’t have to pay any taxes to the government of America, but as soon as he gets back home, he has to pay $814,963 of his total winnings of $5,433,086 as taxes to the government of the Czech Republic.
Ben Lamb, a professional poker player of Tulsa in Oklahoma, who finished third and swept up a cash award of $4,021,038 will have to shell out more than $1,524,011 as taxes to the government.
Mark Gianetti, a poker player from Las Vegas, who finished fourth, will pay 35 percent of his winnings of $3,012,700 or exactly $1,048,642 to the government.
However, Irish player Eoghan O’Dea will lose more money in taxes than any of the above. O’Dea, who finished sixth, will have to pay 40 percent of his winnings to the government. While the Irish law allows amateur players to keep their winnings, it is a bit harsh on professional poker players. Since O’Dea is a professional poker player, he has to pay $695,018 of his total winnings of $1,720,331 to the Irish government.
At the same time, O’Dea’s luck is much better than that of Peter Eastgate, who emerged as the WSOP champion back in 2008. Since Eastgate was from Denmark, he had to pay nearly 73 percent of his winnings as taxes to the government.
In comparison, the tax laws in the US appear to be the friendliest.