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No. of Recommendations: 9
...in sympathy for poor put-upon Phil Mickelson.

“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.”

http://www.nytimes.com/2013/01/21/sports/golf/mickelson-citi...

Phil
Rule Your Retirement Home Fool
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No. of Recommendations: 14
seriously, how can a guy be expected to get by netting around $19M a year? It doesn't pay to work. He might as well quit and just play golf all day.
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“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.”

http://www.nytimes.com/2013/01/21/sports/golf/mickelson-citi......



i wonder if he got that figure by the old canard of adding up all the marginal rates + sales tax (+ property tax?)

especially outrageous would be the self-employed (?) 15% FICA on the first 115K of his 45 million
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i wonder if he got that figure by the old canard of adding up all the marginal rates + sales tax (+ property tax?)

especially outrageous would be the self-employed (?) 15% FICA on the first 115K of his 45 million

==================================
Well, the 15.3% Self-employment tax rate (13.3% in 2012) is two numbers:
12.4% of Social Security and 2.9% for Medicare.

The 12.4% applies up to the FICA limit. The Medicare rate is umlimited.

Of course it's possible that some or most of his endorsement income - for use of his name, image, etc., might be characterized or reportable as a royalty, and if so, it's not self-employment income. Better yet, maybe it's payable to his trust in Bermuda.

With clients like that, there's always good possibilities.

Bill
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Phil Mickelson is now singing a slightly milder tune.

http://www.bloomberg.com/news/2013-01-22/golfer-mickelson-ap...
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I'm not familiar with CA tax law so I won't challenge Phil's original statement. I've heard he could definitely save money moving to another state and that is probably true. But I suspect part of the reason for his gentler tone is a wife, kids, father, mother, and in-laws telling him CA is home and they aren't going to leave.

Also remember that athletes who compete all over the country and the world face a tax nightmare regardless of where they live. Most states will tax them on their earnings in that state. Then they have to hope they get some relief from their home state for the taxes paid elsewhere. Guess being Phil's accountant could be quite lucrative but might also drive you crazy.
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Guess being Phil's accountant could be quite lucrative but might also drive you crazy.
==================================
Our firm has actually had a professional golfer as a client - unfortunately, not one who enjoyed Phil's success. It's work, yes. But drive you crazy? Hey, I was there long ago!

Bill
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He could move to Florida where there is no income tax.

Donna
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He could move to Florida where there is no income tax.

Which is why Tiger Woods moved there very early in his career. Very early.

--Peter
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ii
He could move to Florida where there is no income tax.



or Monaco... lots of wealthy athletes in
MonteCarlo ... don't know why exactly
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