Skip to comments.Golfer Phil Mickelson May Call It Quits Due To Climbing Tax Rates
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 hes 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 Dennys 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 youre asked about Strickers 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, its been an interesting offseason. And Im going to have to make some drastic changes. Im 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: Im not sure.
Q. Moving to Canada?
PHIL MICKELSON: Im not sure what exactly, you know, Im going to do yet. Ill probably talk about it more in depth next week. Im 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 doesnt work for me right now. So Im going to have to make some changes.
To be honest, its 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. Lets take a look at what Mickelson is up against in 2013:
For starters, courtesy of President Obamas 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 theres 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, whats 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 thats earned him a spot on this list of 10 wealthiest athletes on the planet because of some tax increases, understand that hes 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 Mickelsons 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 shouldnt 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.