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Tempest in a tax

By Judy Martel · Bankrate.com
Wednesday, January 23, 2013
Posted: 6 am ET

The latest outcry against higher taxes for the rich came from golf pro Phil Mickelson, who said that tax hikes in California and on the federal level will force him to make "drastic changes" in his life.

Mickelson later backtracked on the public tax lashing with a statement to Fox News that read: "Finances and taxes are a personal matter and I should not have made my opinions on them public."

Earlier, Mickelson suggested he might move from the state of California or retire from golf. "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," he said.

California's residents voted on Proposition 30 last November, the first state tax increase since 2004. It raises taxes by 3 percent for those earning $500,000 or more. Mickelson also earns enough ($47.8 million, according to Forbes) to fall under federal tax increases. Under the "fiscal cliff" resolution, joint income above $450,000 ($400,000 for single filers) will be taxed at 39.6 percent instead of 35 percent and the capital gains tax rate increases from 15 percent to 20 percent. Social Security taxes rose from 4.2 percent to 6.2 percent.

In addition, married couples who earn $250,000 or more and individuals making $200,000 or more will be subject to the 3.8 percent surtax on investment income to pay for health care reform.

What do you think about the higher taxes on the rich and Mickelson's comments?

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1 Comment
CP
January 23, 2013 at 10:28 am

I say good for you Phil. Punishing success is a great way to get people to leave.

Say all you want about him making tons of money playing a game. He is one of a very few people who are extremely talented at something that people enjoy wathing. That is why he makes a lot of money, why does that give the government the right to take 60% of it?

Move to Canada Phil. Those of us that work for a living (rather than vote for a living) wont blame you one bit.