Champion golfer Phil Mickelson is backing away from some recent comments in which he suggested he may need to move out of California to avoid the increasingly heavy tax burden in the state.
Phil Mickelson
Mickelson, who has won four major PGA championships, said he will need to make some “drastic changes,” but admitted that he is not sure what to do yet.
“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 at a press conference Sunday, according to USA Today.
Last November, California voters approved a ballot measure raising taxes on wealthy residents, increasing the top tax rate to 12.3 percent for single taxpayers who earn $500,000 or more, and couples who earn over $1 million a year. Federal income taxes also increased this month to 39.6 percent for single taxpayers who earn over $400,000 a year and couples who make over $450,000 as a result of the fiscal cliff deal.
Mickelson cited high tax rates as one reason why he backed away from joining a group of investors in buying the San Diego Padres baseball team. He noted that he already pays high taxes.
"If you add up all the federal and you look at the disability and the unemployment and the Social Security and the state, my tax rate’s 62, 63 percent,” he said. “So I’ve got to make some decisions on what I’m going to do.”
Mickelson took some criticism over his tax stance, which has been compared to French actor Gerard Depardieu’s move from France to Belgium because of a recent tax hike on the wealthy (see Gerard Depardieu Leaves France Because of Tax Hikes).
Mickelson released a statement Monday night apologizing for his comments. “Finances and taxes are a personal matter, and I should not have made my opinions on them public,” Mickelson said in a statement quoted by ESPN. “I apologize to those I have upset or insulted, and assure you I intend to not let it happen again.”
Besides his earnings from golf, Mickelson also earns endorsement money from several major corporate sponsors, as well as Big Four firm KPMG, whose logo he wears on his cap.
Another championship golfer, Tiger Woods, weighed in on the controversy Tuesday, claiming that taxes were one reason why he moved from California to Florida, which has no state income tax. “I moved out of here [California] back in ’96 for that reason,” Woods said, according to The Daily Caller. “I enjoy Florida, but also I understand what he [Mickelson] was, I think, trying to say.”
8 Comments
People have always "bit the hand that feeds them" throughout history. Memories last nanoseconds, especially these days, and even among "family and friends" so surely among strangers.
Posted by: tego@verizon.net | January 28, 2013 2:47 PM
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What Phil is forgetting is that his California Tax is deducted on his Federal Return. Higher State Taxes mean less Federal Tax. Surprised this has not been pointed out.
Posted by: franvg | January 28, 2013 9:26 AM
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"Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands."
Federal Appellate Judge Learned Hand
Posted by: jhbcpa | January 24, 2013 11:58 AM
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Greg had to add, I don't think there was an error in the last paragraph.
Another championship golfer, Tiger Woods, weighed in on the controversy Tuesday, claiming that taxes were one reason why he moved from California to Florida, which has no state income tax. "I moved out of here [California] back in '96 for that reason,"
It reads correct. " I moved out of here (California)", this is true he moved out of California and into Florida.
Posted by: mvignola002 | January 24, 2013 10:14 AM
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Phil got it right the first time. Get out of that tax hell of California! Run now! Run fast! Run far*!
*Actually Nevada should be sufficient.
Posted by: Rajesh | January 24, 2013 8:37 AM
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There is nothing that compels someone to live where they pay abysmally large taxes. This is a state where 54% said tax someone else (Prop 30) while only 28% said tax me (Prop 28). Both were about the schools which means about paying union pensions. There is no debate left in state government here...It is all one way...tax...tax...and more tax. More wealthy people will move ...but just won't be so upfront about it. I say kudos for saying what others think
Posted by: sandii1 | January 24, 2013 8:27 AM
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The above comment was posted by me.
Last paragraph has an error: Another championship golfer, Tiger Woods, weighed in on the controversy Tuesday, claiming that taxes were one reason why he moved from California to Florida, which has no state income tax. "I moved out of here [California] back in '96 for that reason," Woods said,
It should be [Florida]. He moved to Fl for that reason, state income taxes.
Posted by: Greg Shelton CPA | January 23, 2013 1:20 PM
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Move to Tennessee - no state income taxes. Then you will only pay state income taxes in the states where you played golf. If you play golf in other states that does not have income taxes (Texas, Florida and others), then you will not pay any state income taxes at all on that money. Unlike living in Calornia, when it can tax you on earned money when you did not pay state income taxes in the state where you worked (played golf). After writing this, I noticed Tiger did the same by moving to Florida. However, who want to move to Florida.
Posted by: Greg Shelton CPA | January 23, 2013 1:13 PM
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