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TaxBuzz Top 5 - Darnold’s Tax Bill Exceeds His Super Bowl Paycheck, GA Looks to Eliminate Income Tax for Some Residents & More

by
Rebekah Barton
on
2/13/2026
TaxBuzz Top 5 - Darnold’s Tax Bill Exceeds His Super Bowl Paycheck, GA Looks to Eliminate Income Tax for Some Residents & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. Sam Darnold’s California Tax Bill Exceeds His Super Bowl Paycheck

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Credit: Ronald Martinez/Getty Images

Seattle Seahawks quarterback Sam Darnold has won a Super Bowl, but the victory comes with an unexpected financial twist: California’s high state income tax likely means his tax bill will exceed his official Super Bowl bonus. Because Super Bowl LX was played in Santa Clara, California — a state with one of the highest top-marginal income tax rates in the U.S. — Darnold faces a “jock tax” bill of roughly $249,000, while the standard Super Bowl winner’s bonus is about $178,000 for each member of the winning team, according to estimates.

The so-called jock tax counts “duty days," including practice, meetings, walkthroughs and game days, and allocates a portion of a player’s overall salary to the state where they worked. Because Darnold and the Seahawks spent a full week in California preparing for and playing in the game, a significant slice of his annual compensation became subject to California’s 13 %+ income tax, ultimately producing a state tax bill that outstrips the bonus tied specifically to the Super Bowl itself.

Critics and fans alike have spotlighted this quirk in state tax law as an odd outcome for professional athletes, noting that similar situations arise whenever marquee events land in high-tax states. Some observers have even called on the NFL Players Association to reconsider future Super Bowls in states with steep income taxes to avoid penalizing players financially for big-stage performances.

The episode highlights how state tax policies, already central to broader debates like the Washington “millionaires tax” proposal lawmakers are currently debating, can have tangible effects far beyond traditional tax returns, shaping outcomes for visitors, workers and even elite athletes when work intersects with high-tax jurisdictions.

2. States Push Back On Trump Tax Cuts, Grapple With Revenue Choices

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Credit: Samuel Corum/Getty Images

State governments from coast to coast are increasingly reacting to the federal One Big Beautiful Bill Act’s tax changes — including the expanded SALT deduction and other provisions that shift the federal-state tax landscape — by asserting independent revenue decisions rather than simply conforming to federal cuts. Many states are debating whether to raise revenue through higher taxes on wealth and corporations or maintain tax cuts passed in prior years; advocates for raising revenue say it can fund essential services like education, paid leave and infrastructure, while critics champion lower taxes as a competitiveness boost.

The emerging debate follows a New York Times report highlighting how Republican lawmakers and commentators have criticized states that reject full conformity with federal tax cuts, arguing that states must carefully tailor tax codes to their own budgets instead of following federal policy wholesale.

In practice, high-income tax increases and new revenue measures have already been adopted or proposed in states like Minnesota, Massachusetts and Washington State, which are using these funds for expanded social programs and school funding; proponents point to positive outcomes such as more universal school meals and infrastructure investment.

However, the debate is also split, with some lawmakers wary of burdening taxpayers and potentially driving out businesses or high-earners, a theme seen in recent state tax fights, including high-earner resistance in places like California and New York.

As 2026’s legislative sessions unfold, many states face a stark choice between cutting taxes to attract residents and corporations or raising revenue to sustain public services, a dynamic that will shape state fiscal policy well beyond the current year.

3. Georgia Senate Passes Major Plan to Cut and Phase Out State Income Tax

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Credit: felixmizioznikov/Getty Images

The Georgia Senate passed Senate Bill 476, a Republican-backed measure that would eliminate state income taxes for most residents earning under $50,000 individually and $100,000 jointly, sending the bill to the House as lawmakers debate how far to go with tax cuts. The proposal funds the reductions by repealing numerous corporate and COVID-era tax credits and exemptions, a move supporters argue will put more money in Georgians’ pockets while critics warn it risks gutting revenue needed for schools, health care and other services.

Under the package, the first dollars of income for many would effectively be tax-free starting in 2027, and companion legislation (SB 477) would further lower the flat personal income tax rate to as little as 3.99% by 2028, part of a step-by-step path toward a broader phase-out.

Supporters, including Lt. Gov. Burt Jones and Republicans on the Senate’s special tax committee, say cutting or eliminating the income tax would boost competitiveness, attract jobs and give middle-income families relief from rising costs.

Democrats and analysts caution that erasing a major source of state revenue could create a substantial budget gap, potentially forcing cuts to vital services or new taxes elsewhere, echoing broader debates about tax policy and revenue choices in Georgia’s 2026 session.

This builds on last week’s coverage of Georgia’s deepening tax overhaul discussions, from home-owner property tax elimination plans to potential full income tax repeal, underscoring a high-stakes fiscal and political moment in the Peach State.

4. Dutch Parliament Approves 36% Tax On Unrealized Crypto, Stock and Bond Gains With Global Ripple Effects

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Credit: Wirestock/Getty Images

The Dutch House of Representatives approved legislation to overhaul its “Box 3” investment tax, imposing a 36 % tax on annual gains — including unrealized price increases — on assets such as cryptocurrencies, stocks and bonds beginning January 1, 2028. Under the new system, investors will owe tax on paper profits regardless of whether they sell the assets or receive cash, a major departure from typical capital gains practices.

The rule applies annual taxation to increases in the value of portfolios, with critics warning it could force taxpayers to sell assets merely to cover tax bills and create liquidity challenges, especially for volatile holdings like Bitcoin.

Lawmakers framed the reform as an effort to modernize wealth taxation and replace assumptions about hypothetical returns with taxes tied to actual year-end performance, though real estate and startup shares will follow different treatment rules.

For Americans with global investments or crypto holdings, this shift could signal how future tax policies in other countries might evolve, especially as nations grapple with how to tax digital assets and wealth; U.S. investors living or holding assets abroad may face similar frameworks in other jurisdictions or need to adapt planning strategies if they relocate or invest internationally.

Financial professionals say the Dutch move could prompt capital to flow to more tax-favorable jurisdictions and influence global portfolio allocation decisions, as investors weigh the cost of annual unrealized taxes against long-term investment strategies.

5. Harris County, Other Texas Cities Consider New Sports Venue Taxes to Fund Stadiums and Infrastructure

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Credit: JasonDoiy/Getty Images

Officials in Harris County and other Texas municipalities are exploring proposals to expand or enact new taxes tied to sports franchises and stadium development, including hotel occupancy levies, sales taxes on event-related spending and other revenue tools to help fund sports stadium facilities and surrounding infrastructure, the Houston Chronicle reports. 

In Harris County specifically, home to the NFL’s Houston Texans, local leaders are considering boosting the hotel occupancy tax and earmarking new sales tax increments near arena districts to capture visitor spending, a strategy similar to models used in other cities that leverage tourism-related tax revenue to pay for debt service on big venue bonds. Proponents argue these “user-fee-style” taxes put more of the cost on out-of-town visitors who benefit from games and events. 

Critics, including some taxpayers and local business groups, warn that such targeted taxes can still raise costs for local consumers and may divert spending from other parts of the economy, particularly if they apply to everyday purchases around venues. They also note that using tax incentives to attract or subsidize professional sports can have mixed economic returns. The proposals are part of a trend in Texas, where cities such as Austin and San Antonio have also used sports-related taxes like rental car surcharges and gaming-area levies to fund stadium upgrades and tourism promotion, reflecting a patchwork of revenue strategies that avoid raising property or income taxes.

Supporters say these targeted tax tools can enable major civic projects while keeping the burden off core services and homeowners, but the debate underscores ongoing questions about how much taxpayers, both local and visiting, should pay for professional sports facilities and whether such levies align with long-term fiscal priorities.

Which headline this week most interests you?

Feature Image Credit: Kevin C. Cox/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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