San Diego resident and world-famous golfer Phil Mickelson won a hefty payout for winning the British Open. But he'll also face a heftier tax bill to the state of California, thanks to the way the state now taxes the highest tax bracket. This is a file photo of Mickelson from another event.
From the sports and taxes department, there?s a column today from Forbes about Phil Mickelson?s British Open win in Scotland this past weekend.
Mickelson took home $1.43 million -- in addition to a shiny silver trophy -- for winning the Open. As the Forbes column points out, the golfer and San Diego resident will have to pay California taxes on his prize money. Because he qualifies for several of the state?s highest marginal income brackets ? the highest in the country after voters approved Proposition 30 last November ? Mickelson will probably fork out at least $100,000 in California income taxes from his recent victory.
Why is this story news? As the Forbes piece notes, Mickelson made waves last year by saying he would leave California if voters approved Prop. 30. So far he hasn?t, but his comments still sparked a backlash. But the precedent is there. Tiger Woods apparently left California many years ago for the same reason, according to the Daily Mail. He now lives in Florida, a state that doesn?t have an income tax.
The question is whether someone like Mickelson will now leave California because of the state?s higher income tax. The answer is unclear. Forbes lists a few other stories that say taxes aren?t the only factor for wealthy residents in deciding where to live.
If anything, Mickelson?s win will prompt more discussion about the state?s tax rate and whether wealthy people are leaving California for places like Texas.
Christopher Arns covers state legislation, regulation and contracts, as well as economic news, international trade and economic development for the Sacramento Business Journal.
Source: http://feedproxy.google.com/~r/vertical_59/~3/InWWxcrEbXU/golfer-phil-mickelson-win-taxes-calif.html
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