Posted on 01/28/2013 8:21:21 AM PST by SeekAndFind
America's top-grossing golfer Phil Mickelson drove himself into a bunker on Jan. 20 when he said that federal and California state tax hikes had made him contemplate making "drastic changes" in his life—including, it was widely assumed, moving to a no-income-tax state such as Texas or Florida. But he was only stating publicly what many professional athletes are mulling privately.
No doubt they'll keep their thoughts private, too, given the uproar that ensued. The golfer known as Lefty outraged lefties by noting that a tax burden of more than 60% seemed excessive. Didn't he know that athletes—unlike Hollywood celebrities—are supposed to keep their politics to themselves? Mr. Mickelson quickly apologized for teeing off his critics. "Finances and taxes are a personal matter," he said. In any event, Mr. Mickelson certainly wouldn't be the first athlete to consider relocating for tax purposes.
Last week, Lefty's rival, Tiger Woods, acknowledged that he left California for Florida in 1996 when he turned pro because of the difference in state tax. California's top marginal rate then was 9.3% for individuals earning more than $32,000. The move was particularly farsighted given that rates on high earners in California have since soared.
In November, voters in California approved a ballot measure raising the top rate on income over $1 million to 13.3% (the increase applies retroactively to last year). According to SportsIllustrated.com, Mr. Woods grossed $56.4 million in 2012. As a Floridian, he will keep about $7.5 million that he otherwise would have owed to the state of California. His net tax savings over his 16-year career come to about $100 million. Mr. Mickelson last year earned $60.7 million. Paying the 13.3% California rate, he will owe the state $8 million.
"The day California passed the tax increase, I received three calls from concerned athletes,"
(Excerpt) Read more at online.wsj.com ...
Phil should have stated his reasons. California needs to know why.
Still, Florida ain’t California. My brother lived in LA for 15 years and told me “There’s a reason people pay so much in taxes to live in California. It’s worth it”.
This is mostly true, about Mickelson being a good guy on the Tour.
I don't think that this is necessarily a question of "cajones" however, it's a question of ties. Mickelson has built quite a life for himself, and has family, and undoubtedly many friends in California. I suspect he would have no problem picking up and moving his own family, but such a move impacts his entire social circle. It affects his children's schooling, their friendships and activities, as well as his wife and him personally.
I know moving is sometimes a part of life, and many good things can come from it. But this issue is escalating because his current state's government is out of control, and perhaps through no fault of his own, his family may be faced with few choices. Perhaps he's "firing a shot across the bow" of the CA state legislature, and trying to subtly influence them.
Unfortunately, I bet they are bringing their LIBERALISM to the states they are moving to!!
RE: My brother lived in LA for 15 years and told me “There’s a reason people pay so much in taxes to live in California. It’s worth it”.
1) Where did your brother move to after 15 years?
2) Did he explain to you what’s worth all the taxes to live in California?
RE: Unfortunately, I bet they are bringing their LIBERALISM to the states they are moving to!!
I am puzzled as to why liberals who move to other states (conservative ones) INFECT those states with liberalism.
Why don’t the conservative states ever “infect” (for want of a better word) the liberals who move in?
I have heard that, when we finally leave here, I will bring a Conservative viewpoint.
He left LA to sponge off my mother after my father died.
He didn’t pay his taxes. He’s a liberal. But he also didn’t make that much.
California is eat up with people who will not leave California no matter how much their taxes go up. The ultra-rich will leave but find a way to come back without paying taxes. Florida is hot as hell except when it isn’t and you have to deal with hurricanes.
RE: Two things I garner from what you’re telling me:
1) Your brother isn’t the 1% so he doesn’t care if taxes go up on the wealthy. THAT is exactly what makes California a paradise to these people. All you need is enough people thinking this way and California will be on its way towards Europeanization.
2) What California has going for it is something no other state, no matter how prosperous they are, can ever compete with -— GREAT, MODERATE WEATHER.
This is something people will pay a premium for until the taxes become unbearable.
Is Phil bound contractually to the state of California? If not, he owes no one an explanation why he moves out of state or where he moves to.
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