Pro golfer Phil Mickelson earned $2,167,500 in two weeks. Guess how much of his hard-earned winnings he will end up taking home? Read this Forbes piece for the details on his taxation, but here is the bottom line.
Without considering expenses, Mickelson will pay 61.12% taxes on his winnings, bringing his net take-home winnings to about $842,700. When expenses are considered (10% to caddy Jim “Bones” Mackay, airfare, hotel, meals, agent fees on endorsement income/bonuses—all tax deductible here and in the UK), his take-home will fall closer to 30%.
Absolutely outrageous. As the Forbes story notes, taxation rates now dictate the playing schedules of some pro athletes. I don’t blame them.
Meantime, today in North Carolina, Gov. McCrory will sign historic state tax reform. The reformers in the state legislature have earned our thanks for being willing to think long term and take the arrows that come with being reformers in a state once dominated by big-government liberals.