Top golfer Phil Mickelson may leave California because of the tax increases on millionaires caused by passage of state ballot initiative Proposition 30. Proposition 30 raises sales tax 1/4 0f 1 percent for four years, and raises income tax on earnings over $250k for seven years, to fund state schools. The income tax increase will be mostly significant for those making more than $1 million.
Mickelson says his tax bite from state and federal taxes will be 62-to-63 percent, cutting his estimated $47 million earnings in 2012 to a paltry $18 million. Mickelson says he will have to make “drastic changes”, a statement many interpret to mean he will leave California, or possibly even retire from golf because it just isn’t worth the trouble to be a measly millionaire 18 times over.
The rest of California will be sad to see you go, Phil. Oh, and don’t let the border hit you in the ass on the way out.