Over taxation is a worldwide problem. It seems as if anytime anyone does something extremely well and reaps a large financial reward, the vultures start circling.
One of the more recent examples of the vultures circling was reported in yesterday’s Los Angeles Times. The article reported on the recent golfing victories of Phil Mickelson. Phil Mickelson earned more than $2.16 million in just two weeks.
The article reports:
According to Forbes, Mickelson has been subjected to the United Kingdom’s 45 percent tax rate for those who make more than £150,000 a year. In addition, the magazine reports, he will be taxed on a portion of the endorsement income he earned during his time in Scotland.
While Mickelson can take a foreign tax credit to avoid being taxed again by the U.S. government, he still has to pay self-employment taxes, the new Medicare surtax, and hand over 13.3 percent of his wages to the state of California, which does not have a foreign tax credit, Forbes reported.
To put it simply, Phil Mickelson gets to take home 39 per cent of what he earned. Out of 2.16 million, it is estimated that he will take home $842,700. I don’t care how much you are into class envy, that seems a little unfair. He earned it, why should everyone else reap the benefits?