Monday, February 04, 2013

Phil Mickelson Wins - Oh No, Now He Has to Pay Taxes!!

Poor Phil.

His $1.1M payday for winning the Waste Management Open results in a huge tax windfall for the federal government and the State of California (and maybe the State of Arizona, though I am pretty sure Phil will get a credit in CA for any tax paid in AZ).

In amy event, at $1,152,524.90 in 2013 income through February 3, I really cannot help but feel extremely sorry for Phil.  His prior idea of not playing golf at all so as to avoid taxes seems like a very solid idea now.

Based upon my calculations (with which I will not bore you in great detail), it appears that Phil has maxed out his FICA contribution for the year (so he will pay no more the rest of the year), and he has moved into the most disfavored $1M+ category for state taxes.  This leads him to having paid:

- about 46% on his first $115,000
- about 40% on his next 335,000
- about 53% on his next $550,000 and
- about 56% on the $153,000 over $1M

So Phil has paid about $486,000 in taxes and taken home $666,000 in one month of play.  I fully understand why Phil would want to just quit.  I mean, who can live on $666,000 a month?  I doubt I could (since my liquor, assault weapon and stripper bills would be so high).

Now, some bleeding heart liberals might say that playing golf is what allows Phil to make $30M more per year in off-course income.  And some such folks might note that Phil's $180,000,000 net worth is probably sufficient to see him and his family through these hard times, when he is being taxed almost at Clinton Era rates (and we recall how terrible things were back then).  But I say, "AT WHAT PRICE!?!?"  I mean, my lord, the Phil Mickelson Corporation's $30M revenue stream is hardly enough to justify Phil actually paying taxes on golf earnings at a rate higher than I do......

As a fan of Phil's golfing (actually, I am a big fan), I am glad he has not succumbed to his urge to stop playing/paying taxes.  But as a guy who recognizes the unfairness of Phil possibly going without an 11th car because he is taxed too much, I think maybe he needs to reconsider and just quit.

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