Phil Mickelson Wins Tournaments, Loses 61% of Winnings to Taxes
26th July 2013
Forbes provides a breakdown. First, he’ll forfeit over 44% to the United Kingdom, despite spending all of two weeks there.
Then, U.S. tax collectors get in on the fun. Although Mickelson can avoid being double-taxed by writing off his gains as a foreign tax credit, he’ll pay in other ways. Mickelson is still subject to a self-employment tax and a Medicare surtax. To the state of California, he’s obligated to pay another 13.3% of his earnings. In total, one of the world’s most successful golfer’s is losing 61% of the money he made from the tournaments.
USA Today points out that if the governments gouging him of his gains are not bad enough, “that’s before Mickelson pays his caddie, pays for his hotel and expenses, pays his agent, etc,” and speculated that when all is through, Mickelson will be left with a meager 30% of his original winnings.
‘Hi! We’re from the government, and we’re here to stick our hands in your pockets.’
July 26th, 2013 at 20:38
Since Mickleson didn’t win that without government support from roads, airports, hospitals, it’s only truly democratically socialist that his money is the government’s money. He’s lucky if he keeps 1% percent.