California Taxes –Cartoon Image: Branco Cartoons
(CBS Los Angeles) Thanks to Pro-Golfer Phil Mickelson recent wins at both the ‘British Open Championship & Scottish Open’ and walking away with more than $21.6 Million in just two weeks, Mickelson now faces a 61% tax rate at home in California thanks to recent changes in how income is confiscated.
According to Forbes Mickelson has been subjected to the United Kingdom’s 45% tax rate, in addition he will be taxed on a portion of his endorsement income earned during his time in Scotland.
While Mickelson can take a foreign tax credit to avoid being double taxed again by the U.S. Govt, he still must pay self-employment taxes, ObamaCare’s new Medicare surtax and hand over 13.3% of his wages to the State of California which doesn’t have a foreign tax credit.
Forbes estimates that Mickelson will take home $842,700 which of course does not include any of his tax deductible travel expenses and the additional 10% he owes to his Caddy.
In January, Mickelson created quite a media frenzy when he said that he was unsure if he could afford to continue to live in California and according to Breitbart News Mickelson said that he will have to make some “drastic changes” after the federal govt and the State of California raised the rates at which his income is taxed.
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