<p>"“There are going to be some drastic changes for me because I happen to be in that zone that has been targeted both federally and by the state, and it doesn’t work for me right now,” he said. “So I’m going to have to make some changes.”</p>
<p>Mickelson said the new federal tax rate, and California voting for Proposition 30 to increase taxes on the earnings over $250,000, contributed to total taxes that tap into more than 60 percent of his income.</p>
<p>Golf Digest magazine, in its annual survey of top earners in the sports, said Mickelson made just over $45 million last year on and off the golf course."</p>
<p>Good grief. Dude makes almost $50M a year. Sorry, but I’m having a hard time feeling sorry for him. And if he’s actually paying 60%, he needs a new accountant. But even if he IS paying 60%, he takes home Seventeen. Million. Dollars. A year.</p>
<p>And his math is incorrect. Social Security taxes only apply to $113,700 per year of labor income, so it is not applied to any of the income taxed at the new top tax rates (39.6% over $390,050 federal; 13.3% over $1,000,000 California, deductible against federal).</p>
<p>The total tax rate for the highest level of labor income is about 51.4% if one includes the top federal tax rate, the top California tax rate minus the federal deduction for state income tax, and the Medicare tax rate including the additional Medicare tax (total rate of 3.8% for self-employed over $200,000). Of course, many very high income people manage to get their income under a different category with lower tax rates (capital gains, carried interest, etc.).</p>
<p>We’re all starting to realize the horrors of Prop 30. And the states of Nevada, AZ & TX are saying Thank You! and rolling out the welcome mats for our citizens and businesses…</p>
<p>Note that Prop 30 is also retroactive to Jan. 1, 2012 for those with incomes over $250,000. Lots of scrambling at year end to deal with that issue. While this was referred to taxing the “rich”, $250K does not go far in many areas of CA.</p>
<p>Phil just voiced what many are thinking…</p>
<p>Here’s a CPA’s take on it…many excellent points, scary as they may be…</p>
<p>There should be a special dictionary that translates California policies in easier to understand terms. An easy one is that any Prop XXX means … NREL disastrous policy.</p>
<p>On the bright side, the UC might be able to get a new logo designed by real pros. Or simply waste money as it is its DNA.</p>
<p>Phil should pack and leave. Does he not love Arizona?</p>
<p>$250,000 per year goes plenty far living in California. If not, do you think that the bottom 96% family income families in California live in poverty?</p>
Totally ridiculous. Many, many people in California live on 1/10th that amount. They just don’t live lavish lifestyles with BMWs, timeshares in Tahoe and $50,000 college bills.</p>
<p>If you don’t like how much you have to pay in taxes, nobody’s forcing you to make that much money. Choose to be poor. Life on Medicaid, food stamps, WIC and the EITC is just peachy keen, right? Lots of people are just lining up to quit their jobs and go on the dole.</p>
<p>The flip side to assume that Phil has been getting a tax break all these years, while earning millions per year. He had the dough to do some investments, financial planning etc. With that windfall.</p>
<p>I think every person, no matter how much he earns, has a moral right to keep the bulk of his earnings. To tax someone at a 91% rate (the U.S. top marginal income tax rate once reached this level) is to treat someone as a slave. American universities teach contempt of property rights, as evidenced by some of the comments on this thread. I hope to impoverish them before they impoverish me.</p>
<p>It is HIS money and he should do what he thinks is right to protect it. Mickelson gives a lot, lot of money to charity so he shouldn’t be judged as cheap. Who is anyone to say that some random bureaucrat in California is more entitled to spend his money that Phil is or that the bureaucrat will do more good with it? The faith in an inefficient, corrupt government is staggering.</p>
<p>Everything has unintended consequences. Anyone who says “well I am just going to squeeze the sausage right here and that is the end of it” is an idiot.</p>
<p>Apple already moved their Braeburn Capital unit to Nevada to avoid CA taxes and I’d imagine you might see a few more executives declare their residence to be in NV or AZ and thereby avoid getting hit by these taxes. Does it make the tax raise a net money loser?- who knows but they are likely to get less than the calculate amount, which means CA is going to have another hole in its budget. </p>
<p>You might want to examine just how dependent the California economy is on government programs and services before going off about “inefficient and corrupt bureaucrats.”</p>
<p>Nobody south of Bakersfield would have water to drink if it wasn’t for massive, tax-funded, government-operated aqueducts carrying the rivers of the north and east to the Los Angeles basin. LA would be a fraction of its size were it not for the Central Valley Project and State Water Project.</p>
<p>The farmers of the Central Valley would be plowing up dust were it not for government-built irrigation projects. They stupidly pumped out their entire aquifer in about 75 years, and only a series of “big government socialism” dams and canals keep the valley green.</p>
<p>California’s air quality, once the worst in the nation, has made a 180-degree turnaround. It wasn’t “free enterprise” that stopped the pollution - it was the government of the state of California, those “random bureaucrats” you deride. The people of California demanded action from their government, and the result is a series of ever-stricter air quality standards that keep California a beautiful and healthy place to live.</p>
<p>Those are just a few ways that government has responded to the needs of Californians by progressively serving the public interest and the common good. I know, those are dirty socialist commie words.</p>
<p>texas or florida should send him an invite to move to their states. other peoples money is always good to spend. california is in a race to the bottom in many ways. </p>
<p>p.s. coolweather, have you seen all the smoke and mirrors google, apple , etc… use to beat the tax man? just like warren buffett who always preaches about paying more tax but has an army of tax lawyers fighting the irs. do as I say not as I do.</p>
<p>Oh gee polarscribe how wonderful that some government officials can occasionally do the jobs they are overpaid to do. You may recall that much of California is going broke because the special snowflakes demand all sorts of things without regard to the consequences. Which is why the state pension fund is underfunded by about 30% and much of the agricultural land is wasted, the K-12 education system is a joke. But you feel free to put your trust and funds in the custody and control of the people who brought you all the good stuff. Mr. Mickelson can make the same choice. Nice how that works, isn’t it? At least for now he can leave the state.</p>
<p>
For the wealthy, special, entitled snowflakes who can afford to live in those places. I wonder about the others. Oh wait. They’ve already gone to Texas. Never mind.</p>