Posted By LambChop
From AP and Fox News:
Golf Legend Phil Mickelson vows to make some “drastic changes’ as he faces the ridiculous consequences of California Governor Jerry Brown and Obamanomics – a 62-63% total tax rate in his home state of California.
According to Sports Illustrated, Mickelson was the second-highest earning athlete of 2012, second only to boxing’s Floyd Mayweather,
"It's been an interesting off-season. 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. I'm not going to jump the gun and do it right away, but I will be making some drastic changes. 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. - Phil Mickelson
Mickelson lives in Rancho Santa Fe, California and is a native of San Diego. California’s Proposition 30 raised the state sales tax and created tax brackets that punished millionaires like Mickelson. For income exceeding $1 million, the state rate jumped to 13.3 percent from 10.3 percent. For Mickelson, who earned roughly $60 million in 2012 (an increase of more than $1.8 million).
"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's 62, 63 percent," Mickelson said. "So I've got to make some decisions on what I'm going to do."
Mickelson’s options include moving away from California or retiring altogether. Mickelson decided against pursuing partial ownership of the San Diego Padres last year because of the sale of the franchise and coming tax axe.
Mickelson’s dilemma illustrates the economic futility of raising tax rates to punish the wealthy. The wealthy will simply avoid paying the hire rate, fail to invest in future enterprises, decide against hiring or creating jobs and take their money and sit on it – not a viable way to build an economy or raise government revenues.