Golfer Phil Mickelson plans "drastic changes" over taxes

Phil Mickelson reacts to a shot on the 17th hole during the Singles Matches for The 39th Ryder Cup at Medinah Country Club on September 30, 2012 in Medinah, Ill. / Mike Ehrmann/Getty Images

LA QUINTA, Calif. Phil Mickelson said he will make "drastic changes" because of federal and California state tax increases.

"It's been an interesting off season," Mickelson said Sunday after the final round of the Humana Challenge. "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."

The 42-year-old golfer said he would talk in more detail about his plans — possibly moving away from California or even retiring from golf — before his hometown Farmers Insurance Open, the San Diego-area event that starts Thursday at Torrey Pines.

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"I'm not sure what exactly, you know, I'm going to do yet," Mickelson said. "I'll probably talk about it more in depth next week. I'm not going to jump the gun, but there are going to be some. 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."

In November, California voters approved Proposition 30, the first statewide tax increase since 2004. Mickelson lives in Rancho Santa Fe.

"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."

Last year, Mickelson flirted with becoming a part owner of the San Diego Padres, the baseball team that sold for $800 million in August. He was asked Sunday if there was a correlation between the tax increases and what happened to the Padres' deal.

"Absolutely," Mickelson said.

He later explained why he was waiting to provide more details.

"I'll probably be in the media center and I'll probably be a little more open to it because San Diego is where a lot more things, it's where I live, it's where the Padre thing was a possibility, and it's where my family is," Mickelson said. "And it just seems like a better fit than right here off of 18 on Palm Springs."

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Mickelson closed with a 66 on Sunday to tie for 37th at 17 under in his season debut.

"I was rusty starting the year," Mickelson said. "I had a great four days here where I can work on my game with perfect weather and wonderful golf courses, where I could build some momentum. Heading into San Diego, I feel a lot more confident."

The tournament was his first since the HSBC Champions in early November in China. The Hall of Famer has 40 PGA Tour victories.

[bentleytn]

I won't dispute what his actual tax rate is, I'll concede that you are right.

But one thing that is certainly true, he pays more money to the federal government than the entire 346 commenters on this thread combined (using the normal distribution of wealth average - Its remotely possible that Ross Perot commented in which case I'd most likely be wildly wrong)

I don't know about you, but I want those folks who are paying your tab and mine to hang around, keep hitting golf balls (or building computers?) and contributing to the total tax pool. The only way to do that is to provide a reasonable incentive to do that. If they are nice enough to hang around and keep working, playing, and winning, we might have a chance to to pay down this snowball that keeps growing called the national debt.

The problem with this thread is that most commenters seem to think Phil is an ass for wanting to keep more of his earned money. Wake up buttercups, Phil doesn't owe you or me anything. I/we have to go out and earn it for ourselves. But keep re-electing socialist who tell you its all going to be ok, and by the way here is a free cell phone and lunch, and you are going to wake up one day and all of the Phils (and Bills, and Ross') are going to be living in Monaco and you and I will actually have to go out and earn our own keep.

Oh, and by the way, if that happens good luck paying down that debt tab, we will make Greece look like a bad game of Monopoly. We will be paying 10 grand for a carton of milk and wondering what happened to the good old days when the Vanderbilts, Gate's, and Mickelson's use to be kind enough to help out by paying 100X in total proceeds to the government on our behalf.

I'm out - I have to go out and earn enough money to pay for my kid's lunches today and try to better myself.... I'm thinking about taking up golf, by reading this thread most folks seem to think its a cakewalk to win on the PGA tour and its so easy that after you win you throw the millions in the air and say to your friends and fellow citizens, take it, I'll win again next week.

[dlackey2]

One thing's for sure.

Phil Mickelson's tax rate is not 62-63%, as he stated.

[outback_jackson]

Correct, and even if it was a 62% marginal rate, his EFFECTIVE rate is more than likely less than HALF of his marginal rate, or his KPMG sponsors are doing a pitiful job on minimizing his taxes!

[zmonkee]

even if his rate is 50%--- that is still ridiculous!!

BTW....OJ-- you were commenting on how bad Phil played 2 weeks ago-(even though he made the cut)-- how'd he do this past weekend??

[bentleytn]

Preach On Truth2141 -

What 90% of unproductive people (and those with a sense of entitlement) don't know is that the reported 15% - 20% tax rate that the rich pay is not even close to reality, but it does win elections. The reason the number is reported at 15% is because of dividends - most wealthy people pay tax on money they have already made (If Phil made $100MM through his career and saved $50MM of that money he invests it, at that point, he makes call it $5MM annually from his investments, usually in stocks, bonds, realty, etc - then that money gets taxed again, albeit at a lower rate - net net he ends up paying the original 50+ % on the original money earned and an additional 21% (15% federal and 6% state dividend tax) for upwards of 60-70% total tax rate)

If I had worked my entire life to become one of the world's best anythings, I'd be pissed too. Obama has done a masterful job of pointing a finger to blame one class of people for the ill's of this country at the expense of dividing a once productive populous.

Why do you think companies pay salespeople commission? If you provide the right incentive they produce more - why do auto manufactures provide bonuses for quality and production superstars? Is it possible so their workers are motivated to work just a touch harder and smarter to produce better and more cost efficient cars?

Tax the most educated, hardest working, smartest, or just plain luckiest people in our country and do you think they might just say "man i'm tired and I'm not getting anywhere by this extra effort, I think I'll just quit, buy a nice house on the beach in some country that doesn't tax me into poverty, and enjoy the fruits of my labor, earned in a country that use to reward hard work"

And for those of you who think I'm a republican think again - this isn't a party issue. Kennedy would turn over in his grave at this new version of socialists - Kennedy preached over and over about the positive benefits to the overall health of the nation by lowering taxes - but for those of you wanting a free ride or who think that Phil is just plain selfish, think again and look in the mirror.

Just like FDR's social security idea, it sounded great and kind at the outset, but ultimately was a tax on the nation's grandchildren. Take your free lunch, 47% paying no taxes, live off of the wealthy (which I'm not) but its a selfish move, you are taxing your children and your grandchildren whether you are educated enough to know it our not.

You better thank your next rich neighbor for starting a company, investing in the community, building, working, hiring a bunch of you, or just for their desire to get up off their butts and produce or they just might decide decide to move, or just choose to hit golf balls in countries that say - "You keep $75 million we just want a measly $25 million of your take-home pay"


Wow - that has been building for a while an I feel much better.

[dlackey2]

Phil Mickelson is not paying "+50% on the original money earned."

That is simply a lie.

[zmonkee]

and what rate are you comfortable having him pay lackey??

[truth2141]

What a bunch of blithering idiot libtards on this site.

He makes a lot of money and apparently also is smart enough that he should avoid paying 60% of it to the gov't if he can.

Smart and good at what he does. Wow, lets beat on him.

Then he could if he wishes choose to donate money to charity if he wishes which apparently he he does.

But be proud idiots. You won! So 51% of the morons can vote the country into financial oblivion. whoopee!

[wizardlady]

And, if this gentleman had to survive, and I do mean TRY to survive, for just one month on what a blind, disabled elderly person recieves from SS/SSI ($764) and a food stamp allowance($99), COULD he do so?

How can any person have sympathy for someone gripping about not being able to keep ALL their money when they have so much to be thankful for.......and when they are dead, their money will not do them any good at all.....so spend it to help others as others have helped them get to their present status.

[zmonkee]

and WHO should decide on who to spend it on to help others? The government? He earned it, why shouldn't HE be the one to decide?

[omnibus66]

Not only is he rich, he is a liar. Nobody raking in 45 million per year pays a 62% tax rate. With all the loopholes and offshore options available for the ultra rich, it is more likely that he is in the 15 to 20 percent range. Don't we all fell sorry for him that Romney wasn't elected so he would have been fully protected from fairness.

[empirebuilder]

His sponsors have likely offered their opinions as his decision may have some affect, however, unless someone can show me, Phil and his family are free to move anywhere they wish.

I guess he is considering this now as it is likley another freedom Obama may want to take in the future to guarantee his "share the wealth" strategy.

Should be interesting to see if Obama stays in CHICAGO after his term is over!!!! Cold, no golfing in winter, crime, high taxes... heck no- I am going to Hawaii!!!

Do as I say, not as I do Obama...

[facelessdrone2005]

Hawaii has higher taxes than Chicago, dude.

[earlysaid]

The wealthiest people are the ones who whine about taxes. The rest of us pay our taxes and don't complain because we make a salary and it is not millions of dollars like a pro-golfer like Phil Mickelson.

[zmonkee]

that's because the "most successful" are in the highest brackets-- I'm not saying you, but most of Americans don't even pay taxes, which is why they don't care about rates getting raised-

[jgg000010]

it's funny, tiger woods also says he left california because of high taxes.
Where's that story?

[legalbutunjust]

CCB: Not just taxing golfers, it's about taxing Phil Mickelson and golfers on his level. For quite some time, he was ranked no.2 in the world as far as the PGA tour's rankings. He has won The Masters three times, and there have only been three other golfers to win such with a greater number of strokes under par than the next best finisher who took second. An only three other golfers have ever won that tournament more than three times.

Forty tour victories? Obviously from an earnings standpoint, he's among those that are the ones the system is going to look to tax the most, as golfers go.

[zmonkee]

Funny how most people on the left have been bashing him and calling him a loser--