Posted on 01/21/2013 5:12:50 AM PST by tellw
Word is, Phil Mickelson is mad as hell about rising tax rates, and he’s not going to take it anymore. What follows is a brief portion of an interview Mickelson gave earlier today after carding a final-round 66 at the Palmer Course at PGA West in La Quinta – which I assure you, is not associated with the La Quinta next door to your local Denny’s – in which the golfer hinted that he is considering drastic career changes because of a combined tax rate nearing “62, 63 percent:”
(Excerpt) Read more at forbes.com ...
Q. When you’re asked about Stricker’s semi-retirement, with the political situation the last couple months, blah, blah, blah, what did you mean by that? Do you find it an unsettling time in a way?
PHIL MICKELSON: Well, it’s been an interesting offseason. And I’m going to have to make some drastic changes. I’m not going to jump the gun and do it right away, but I will be making some drastic changes.
Q. Meaning leaving from California?
PHIL MICKELSON: I’m not sure.
Q. Moving to Canada?
PHIL MICKELSON: I’m not sure what exactly, you know, I’m going to do yet. I’ll probably talk about it more in depth next week. I’m not going to jump the gun, but there are going to be some. 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, you know, it doesn’t work for me right now. So I’m going to have to make some changes.
To be honest, it’s hard to blame Mickelson – who has compiled a net worth approaching $180 million by repeatedly striking a tiny white ball until it falls into a hole — for putting all options on the table, which according to some, include the possibility of prematurely shutting down his career to avoid his rising tax burden. Let’s take a look at what Mickelson is up against in 2013:
For starters, courtesy of President Obama’s re-election and the subsequent fiscal cliff negotiations, Mickelson will experience an increase in his top tax rate on ordinary income from 35% to 39.6%, and an increase in his top rate on long-term capital gains and qualified dividends from 15% to 20%. Clearly, when faced with tax hikes of that magnitude, it stops making economic sense for Mickelson to continue to swing a metal stick up to 70 times a day in exchange for the $48 million he earns on an annual basis.
But it gets worse. Thanks to the expiration of the temporary 2% reduction in the payroll tax rate on the first $113,700 of self-employment income, Mickelson will have to fork over an extra $2,274 in tax during 2013, an additional burden that makes it hard to justify briskly walking as many as five miles per day, four days a week. In long pants, nonetheless.
And then there’s the impact of Obamacare. When you consider that from now on, Mickelson will be liable for an additional 0.9% tax on his self-employment income and 3.8% tax on his net investment income after each exceeds $250,000, what’s left over from the multi-million dollar endorsement deal requiring him to sport a Rolex watch while playing private courses in exotic locales hardly seems worth it.
If you think perhaps Mickelson is being a bit of a baby for threating to end a career that’s earned him a spot on this list of 10 wealthiest athletes on the planet because of some tax increases, understand that he’s getting hit on the state level, too. In November, California passed Proposition 30, which increases the top income tax rate on resident millionaires to 13.3%, a drain on Mickelson’s take-home pay that may force him to sell his 9,500 square foot mansion and flee his home state in search of more friendly pastures.
Should Mickelson follow through on his promises, he is fortunate that there is no shortage of countries across the globe that offers an opportunity for a man to earn exorbitant riches by playing a game. But I, for one, would encourage Mickelson to stay the course, continue to fight the good fight, and hire a savvy tax advisor. He shouldn’t have to look too far; after all, one of the sponsors that paid Phil an estimated $44 million in 2012 was KPMG.
One thing about Canada - there is no inheritance tax.
Just how snarky can a “writer” get.......good God.
I always wondered about PM living in California. Most pro golfers live in Florida, for obvious reasons.
Yeah, mocking someone who earns a living “ hitting a little white ball”, when the writer earns a living putting electrons out into the cloud. At least the athlete has talent....
“Mickelson will have to fork over an extra $2,274 in tax during 2013, an additional burden that makes it hard to justify briskly walking as many as five miles per day, four days a week. In long pants, nonetheless.”
...this guy is a MAJOR LEAGUE RICHARD NOGGIN!!
And one day, when the inevitable happens and Phil dies, the government will try to take 40% of whatever he’s saved during his lifetime. So why should a dude with rheumatoid arthritis married to a wife who had cancer keep spending 8 months per year away from home when he’s already amassed a significant fortune?
.
Interesting post/thread. HOORAY Phil for even speaking out (about socialism)!
Socialism Is Legal Plunder - Bastiat
DEPOPULATE socialists from the body politic.
Double eagle BUMP/BANG!
In Forbes, no less. Envy is cool.
I hope the golfer quits, or moves. It might wake up some sports zombies.
“To be honest its hard to blame Mickelson...” Um, no. I don’t blame him at all. He is trying to protect WHAT HE EARNED.
More likely is the fact that he has accumulated more money than he could ever spend so why would you continue to play.
By the way, most people work all their lives to be able to retire and play golf in their golden years. What does a professional golfer do when he retires?
As they say, people vote with their feet.
Next thing we know, Bronco will release an Exec. Order which freezes the bank accounts and confiscates the property of all millionaires who have the chutzpah to relinquish their citizenships in favor of becoming citizens of a country whose laws reflect that what you earn is yours, and not the gubmint’s.
That writer wouldn’t have dared to write the same article on Tiger Woods making his move to FL.
What the snarky writer doesn’t get and Mickelson does is that this is only the start. Taxes are going much, much higher on the wealthy and there will be more taxes on the middle class as well.
There have to be, to keep the scam going.
He is making 48 million a year? So he is gifting over $30,000,000.00 a year.....that’s a lot of obama phones.
Mickelson going Galt?
I don’t watch golf (my Dad always controlled the TV growing up, so I learned something about it) but Phil Mickelson has always been a class act in the game and outside of the game. I hope folks take notice.
Makes sense. He's 42, has young children, and a hot wife.
So he cuts way back on his work, spends a lot more time with the kids and the wife, and enjoys life and spending his money. What's so bad about that? I wish I'd had the opportunity to do that at his age.
Somebody should ask “writer” Tony Nitti what his handicap is.
Sounds to me like a snarky little man who is jealous of someone else’s success. In short, a liberal.
and let’s not forget, the tick in the whitehouse is planning on sucking more money from the producers during his next four years, or more, reign of terror.
I am not talented enough to be earning the threshold amounts for the higher tax rates BUT I don’t envy those who do. Let’s say Phil quits, frankly with his arthritis I expect him to cut back anyway, and along with him go many of those who are the top earners in each of their fields because they got there based on talent, what will be left? There was a news article recently wherein Cal was “surprised” the new tax rates are not bringing in more money. Do we really elect people this stupid that they don’t know that taxes kill? I guess that is rhetorical.
That's an easy one. He sits at a desk and has people yell at him all day. :-)
Dear Toni:
Besides the obvious brain damage, what’s your handicap? You snarky wankers are jealous of hard work and talent because you don’t want to work and have no talent.
Clete
That Forbes writer needs to be smacked upside the head. Only one or two commentors at the site get it...the rest of them are whining, snarky, sissies.
Old picture - I think his boobs are bigger than hers by now.
Keep more of his money? Who does Mickelson think he is, Al Gore?
Seems like most retire and go fishing!
Mickelson is an anomoly. Yes the top pros make huge amounts of money, most from endorcements and appearance fees outside the US. Those at the below elite level, say beyond the top 30 or so do well but when they deduct their expenses and fees, sponsor arrangements, training, TAXES etc they are not super rich. Lastly, their high paid careers don’t extend over 30 years either.
I am happy for Phil. I am glad he put this on the record.
I thought Forbes was pro-Capitalism. When did they make the sharp left turn?
Very punny.
Phil Mickelson has been a tremendous asset to the game of golf. A legendary player and a real gentleman.
Phil Mickelson is a gentleman who has provided stalwart support during his wife's battle with breast cancer.
On the other hand, your comment reflects a witless cretin.
He wasn't happy with the PGA when they came up with the end of year playoff which demanded another month out of anyone who wanted/qualified to stay in it. The other thing he wasn't happy with was the prize money for it was all tied up in annuities that didn't mature for another 10 years.
“What does a professional golfer do when he retires?”
What color does a Smurf turn when you choke him?
LOL.
It appears that there is an opening for a course pro at the Galt’s Gulch Country Club.
I thought I was going to read a “real” article, but instead it’s nothing but sarcasm aimed at Mickelson.
“What does a professional golfer do when he retires?”
Go on the Senior Tour.
My guess is, Phil “officially” moved to Florida... a state with NO income tax...
Or, maybe even a little FURTHER Southeast??
I don't blame him...I wouldn't work that hard for a measly 20 million take home pay, per year...
When someone else owns more of your labor than you do, there’s a word for that: slavery.
If Mickelson only hit a small ball into a hole for his money, what did the government do to deserve 30% of his money?
If Mickelson only hit a small ball into a hole for his money, what did the government do to deserve 30% of his money?
To grab a line from The Third Man, “He’s just a Scribbler, what’s got too much drink in him”.
Professional golf is not a necessary industry in the economy. It is a sport, for entertainment.
However, to become a professional golfer, and to climb into the ranks of the big winners(there are only half a dozen who get there and stick around for very long) takes an immense amount of work. They deserve to keep their earnings, since they did indeed earn it.
Lighten up - Phil has man-boobs.
Had I known about his wife’s condition, I would have refrained from posting that though.
You are the only one in this thread about income taxes who has demonstrated a queerly uncontrollable desire to discuss man-boobs. Whatever floats your boat...
Queerly uncontrollable huh? I needed a good laugh, thanks.
Tiger Woods grew up in Southern California...when he turned pro he moved to Florida and saved him millions in taxes what with his endorsement deals alone.
Texas? Some golf pros live there like KJ Choi in Houston.
At the minimum, he needs to flee Kalifornistan for Florida, to eliminate the state income fleecing.
Phil has family there, and a long history in California. He likely made the decision to stay in CA for those reasons. Now however, I think he's questioning whether or not those reasons justify the onslaught of additional expenses.
I think Tiger's family was smaller, he didn't have kids yet, and when he moved to FL he didn't have the same ties in CA.
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