Phil Mickelson Will Fork Over Most of His Winnings in Taxes

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Phil-Mickelson

Photo of Phil Mickelson, a winner, but not with taxes

Phil Mickelson had back-to-back wins at The Open Championship and the Scottish Open this past month and now he must pay. He won $2.16 million using his own skill, not the governments’ skills, but the governments both here and in the UK will take most of his earnings.

He is subject to UK taxes at a 45% rate for making more than £150,000 in a year. In addition, he will be taxed a portion of his endorsement income for the time he was in Scotland.

King George III lives!

While Mickelson can take a foreign tax credit to avoid the 61% California taxes, he will still have to pay the US government the self-employment taxes, Obama’s Medicare surtax, and 13.3% of his wages to California because they don’t have a foreign tax credit (someone has to pay for their welfare state).

He will take home about $842,700 which does not include travel expenses and the 10% he owed his caddy. That’s fair?

Read the story at CBS Los Angeles

 

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