Phil Mickelson opened up to a few members of the media after his round on Sunday at the Humana Challenge. He had finished at 17-under par T-37 way before the leaders would be finishing their rounds.
He was talking with some media members, who had nothing better to do, and began talking about the excessive tax rates that he must pay in California due to his large income and remarked that he would have to make some “drastic changes” in the future.
California, a state that is nearly bankrupt, has an income tax. Mickelson’s estimated income in 2012 was $47 million. If you deduct expenses, payroll, and jet fuel from that his net income was probably somewhere around $20 million. Most of us could live on that and be happy to pay the taxes.
He claimed that with California and federal tax rates he would have to pay 62-63 percent in taxes. That is a pretty hefty bite out of the wallet.
California income tax would require 13 percent or $2.6 million. Florida does not have an income tax. Seems fairly simple, pile the kids in the jet and move to Florida. Disney World versus Disneyland, seems like a fair trade.
Most Americans cannot relate to the tax liability of a $47 million income and were not too tolerant of Mickelson’s rant on tax law.
Mickelson’s public relations team probably nearly had a collective heart attack after hearing his comments. They certainly had a crisis intervention meeting with their employer and issued an apology on Monday night.
His spokesman T.R. Reinman issued the following statement,
“I absolutely love what I do. I love and appreciate the game of golf and the people who surround it. I’m as motivated as I’ve ever been to work on my game, to compete and to win championships.”
Mickelson went on, “I’m like many Americans who are trying to understand the new tax laws. I certainly don’t have a defense plan at this time, but like everyone else I want to make decisions that are best for my future and my family.”
He concluded, “Finances and taxes are a personal matter and I should not have made my opinions on them public. I apologize to those I have upset or insulted and assure you I intend to not let it happen again.”
Mickelson has been a beloved figure in the golf kingdom. Will these comments hurt his image? Possibly, but not much, most Americans probably agree with him.
Does the PGA Tour wish he had not made these comments? Most assuredly, they do not want politics to become an issue.
The tour wants it sponsors to reap the media attention. When a Fortune 500 Company is shelling out $6 million to sponsor a golf tournament the tour wants that sponsor to be happy with its name splattered all over the television and not overshadowed by one of its biggest stars.
Mickelson was probably out of line with his comments and the Humana Challenge was definitely not the correct venue to vent his frustration.
He does bring up some important issues, however. Issues that local, state, and the federal governments are struggling with daily.
Maybe Mickelson was sending up a trial balloon to test the waters for a run at the California’s Governors Mansion.