Taxes could cause Phil Mickelson to “go Galt”
Since beginning his run for president in 2007, Barack Obama has endlessly complained that higher-income earners aren’t paying their “fair share” of taxes, despite IRS statistics showing that the top 20% of income earners pay nearly 70% of all income taxes.
All signs are than President Obama will push for even more tax revenue increases in his second term. Much like a bank robber, President Obama and his acolytes in Congress feel that they can keep going back to the wealthy because, after all, that’s where the money is.
But what if those being targeted by these tax hikes decide to give up and walk away? Based on comments he made this weekend, that thought seems to have crossed the mind of golfer Phil Mickelson:
On the day President Obama was sworn in for his second term, Mickelson sent shock waves through the Humana Challenge when he said the political landscape in the United States was causing him to seriously contemplate his future in golf. Mickelson, who will turn 43 in June, has 40 PGA Tour victories, including four majors, and was inducted last year into the World Golf Hall of Fame.
“I’m not going to jump the gun and do it right away,” he said after carding a six-under-par 66 to finish in a 10-way tie for 37th, “but 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. So I’m going to have to make some changes.”
“If you add up all the federal and you look at the disability and the unemployment and the Social Security and state, my tax rate is 62, 63 percent,” Mickelson said. “So I’ve got to make some decisions on what to do.”
Mickelson’s tax rate is so high, not just because of his federal tax burden, but also because he lives in California, which has a top marginal tax rate of 13.3% — a result of the passage of Proposition 30. Of course, Mickelson’s bottomline would be helped by voting with his feet and moving to a state with a more tax-friendly climate, which is something many wealthy Calfornians have done.
The point is that Mickelson shouldn’t have to move. And the problem isn’t that Mickelson has been too successful or being selfish. It’s his money. He earned it with his talent and hardwork. The problem is that politicians and bureaucrats in Washington, DC and in Califnornia are spending too much money. They don’t want to cut their taxpayer-funded giveaways, so they target people like Mickelson to the point their they loose their incentive to work.