Phil Mickelson, professional golfer, age 43. Won approximately 2.2 million dollars in Scotland over the past two weeks, by winning first the Scottish Open, and then British Open. Sounds like a nice haul for two weeks' work.
I'm sure it was discussed here somewhere on FR, that he will be taxed at 60% -- in the UK! This isn't even counting US federal and state taxes he'll pay in California!
You may have heard about the high tax rate in the UK, and what they'll do to professional athletes. Have you also heard about the tax he, and every other athlete also has to pay while in the UK? For those athletes receiving "global endorsement money," they have to pay taxes on that, as well. The compute that tax by taking the total value of their endorsements, and then divide it by the number of days they actually worked in the UK! Outrageous! Mickelson earned something like $44 million in endorsements last year, and has to use that figure as the basis for computing his endorsement tax.
And don't forget, the UK has VAT, property, and all sorts of income taxes. Don't think for one minute that US politicians aren't thinking of ways to tax us more. It's just a matter of time.
I saw that article. He can offset the UK tax on his US taxes but still has to pay the California tax on his income, his caddys fee, and pay for his transportation etc. It looks like he might pocket 25% of his winnings. I don’t understand why he’s still living in California though. He made a big deal of complaining about the tax rate there earlier this year. The only way to remedy that is to leave.
RE: Won approximately 2.2 million dollars in Scotland over the past two weeks, by winning first the Scottish Open, and then British Open.
I’m sure it was discussed here somewhere on FR, that he will be taxed at 60% — in the UK!
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Are you saying his REAL PRICE MONEY after taxes is just $1.3 Mill.?