ForexTV NewsDesk | January 22 2013 9:32 EST
ForexTV.com (New York) by R. Rode
One of golf’s most beloved players, Phil Mickelson, has spoken out against the new tax rates and say’s he might have to move out of the state of California.
Mickelson, according to Sports Illustrated, was the second-highest earning athlete of 2012, second only to boxing’s Floyd Mayweather, Jr. Mickelson, who was also second on the list in 2011, earned $3.7 million in winnings and $57 million in endorsements last year — for a staggering total of $60,763,488.
“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,” he said. “So I'm going to have to make some changes."
California voters in November approved Proposition 30, which, in addition to raising the state sales tax, carries a menu of new tax brackets that hit millionaires like Mickelson hard. 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, which would be a tax 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 also said he is currently working on learning about the new tax laws that have raised his rate, and is relying on the advice of experts to make decisions for the future.
"I certainly don’t have a definitive plan at this time, but like everyone else I want to make decisions that are best for my future and my family," he said.
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