Here’s one recent published example
“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 is at 62 to 63 percent”
- California taxes drive him to far over half.
Mickelson is full of crap.
Just to take two of his examples: unemployment and social security the tax rates on those are capped at certain levels of income. CA state unemployment is only paid on the first $7,000 of wages, federally the first $8,000 of wages. Social security currently has an income ceiling of $113,700.
Also according to IRS Publication 17 (2012) Chap 22 people can deduct the state income taxes they pay from their federal income taxes.
I just looked up the CA disability tax rate and it is 1% on the first $95,585 of wages so that has an income ceiling as well.
If Mickelson is actually paying over half of his income in taxes I will eat his spikes and help him find a competent CPA.