Star golfer Phil Mickelson says he’s going to make “drastic changes” as a result of tax increases at the federal level and in California, where he lives.
“I'm not going to jump the gun and do it right away, but I will be making some drastic changes,” he told reporters after a tournament in La Quinta, Cal., Sunday.
Asked if that meant leaving California, Mickelson said, “I'm not sure.”
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Asked if that meant moving to Canada, he said, “I'm not sure what exactly I'm going to do yet.” Mickelson said he will likely offer more details at the PGA event in La Jolla, Cal., this week.
“I happen to be in that zone that has been targeted both federally and by the state, and it doesn't work for me right now. So I'm going to have to make some changes,” he said.
That “zone” refers to people with annual income of more than $1 million. California’s Proposition 30, passed in November, raises the state income tax rate to 13.3 percent from 10 percent for those at that in that bracket. The state government is fully controlled by Democrats.
Meanwhile, the federal fiscal-cliff accord increases the tax rate to 39.6 percent for those with income of more than $400,000.
“If you add up all the federal, disability, unemployment, Social Security and 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.”
The first $113,700 of a worker’s wages is subject to Social Security tax.
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