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Fed-Up Phil: Popular Golfer Mickelson Says High Taxes Are Going to Force Him Into ‘Drastic Changes’ (Could He Retire?)

Jan. 21, 2013 8:13am Jonathon M. Seidl

Phil Mickelson Promises Drastic Changes Due to High Taxes | Retirement?

LA QUINTA, CA – JANUARY 20: Phil Mickelson hits out of a bunker on the 12th hole during the final round of the Humana Challenge In Partnership With The Clinton Foundation on the Palmer Private Course at PGA West on January 20, 2013 in La Quinta, California. Credit: Getty Images

LA QUINTA, Calif. (TheBlaze/AP) — Phil Mickelson said he will make “drastic changes” because of federal and California state tax increases.

“It’s been an interesting offseason,” Mickelson said Sunday after the final round of the Humana Challenge. “And I’m going to have to make some drastic changes. I’m not going to jump the gun and do it right away, but I will be making some drastic changes.”

The 42-year-old golfer said he would talk in more detail about his plans – possibly moving away from California or even retiring from golf – before his hometown Farmers Insurance Open, the San Diego-area event that starts Thursday at Torrey Pines.

“I’m not sure what exactly, you know, I’m going to do yet,” Mickelson said. “I’ll probably talk about it more in depth next week. I’m not going to jump the gun, but there are going to be some. There are going to be some drastic changes for me because I happen to be in that zone that has been targeted both federally and by the state and, you know, it doesn’t work for me right now. So I’m going to have to make some changes.”

In November, California voters approved Proposition 30, the first statewide tax increase since 2004. Mickelson lives in Rancho Santa Fe.

“If you add up all the federal and you look at the disability and the unemployment and the Social Security and the state, my tax rate’s 62, 63 percent,” Mickelson said. “So I’ve got to make some decisions on what I’m going to do.”

Last year, Mickelson flirted with becoming a part owner of the San Diego Padres, the baseball team that sold for $800 million in August. He was asked Sunday if there was a correlation between the tax increases and what happened to the Padres’ deal.

“Absolutely,” Mickelson said.

He later explained why he was waiting to provide more details.

“I’ll probably be in the media center and I’ll probably be a little more open to it because San Diego is where a lot more things, it’s where I live, it’s where the Padre thing was a possibility, and it’s where my family is,” Mickelson said. “And it just seems like a better fit than right here off of 18 on Palm Springs.”

Mickelson closed with a 66 on Sunday to tie for 37th at 17 under in his season debut.

“I was rusty starting the year,” Mickelson said. “I had a great four days here where I can work on my game with perfect weather and wonderful golf courses, where I could build some momentum. Heading into San Diego, I feel a lot more confident.”

The tournament was his first since the HSBC Champions in early November in China. The Hall of Famer has 40 PGA Tour victories.

USA Today has the full press conference exchange below:

Q. When you’re asked about Stricker’s semi retirement, with the political situation the last couple months, blah, blah, blah, what did you mean by that? Do you find it an unsettling time in a way?

PHIL MICKELSON: Well, it’s been an interesting offseason. And I’m going to have to make some drastic changes. I’m not going to jump the gun and do it right away, but I will be making some drastic changes.

Q. Meaning leaving from California?

PHIL MICKELSON: I’m not sure.

Q. Moving to Canada?

PHIL MICKELSON: I’m not sure what exactly, you know, I’m going to do yet. I’ll probably talk about it more in depth next week. I’m not going to jump the gun, but there are going to be some. There are going to be some drastic changes for me because I happen to be in that zone that has been targeted both federally and by the state and, you know, it doesn’t work for me right now. So I’m going to have to make some changes.

Q. Is that a correlation between that and what happened to the Padres?

PHIL MICKELSON: Yeah.

Q. With you?

PHIL MICKELSON: Absolutely.

Q. So why do you say next week? What is going to happen so drastic next week?

PHIL MICKELSON: No, but I’ll probably be in the media center and I’ll probably be a little more open to it because San Diego is where a lot more things, it’s where I live, it’s where the Padre thing was a possibility, and it’s where my family is. And it just seems like a better fit than right here off of 18 on Palm Springs.

Q. Is it a stance that you are taking because on the one hand, you’ve made a lot of money, and no matter how much they take out, you are left with a lot of money?

PHIL MICKELSON: Yeah. I’ll probably go into it more next year or next week. But if you add up, if you add up all the federal and you look at the disability and the unemployment and the Social Security and the state, my tax rate’s 62, 63 percent. So I’ve got to make some decisions on what I’m going to do.

Q. How do you balance that against the TOUR’s retirement plan which by all standards is the best retirement plan in sports?

PHIL MICKELSON: I don’t understand. What do you mean?

Q. Well, I mean I understand the 60 percent part of the equation, but in the TOUR’s plan, you guys put about as much money aside as you want. It’s treated differently under tax laws than most anybody else’s tax plans. Where most people can only put away $45,000 or $50,000, you guys can put as much away as you want. And so at the end you guys end up with a much larger pot of gold than most people can.

PHIL MICKELSON: But when it comes out, it’s still taxed at the same 62 percent rate.

Q. Well, you’re still making that kind of money. That’s if you’re still in that bracket.

PHIL MICKELSON: (No response.)

While it’s unclear what drastic changes he’ll make, plenty in the golf world have suggested retirement is on the table.

Forbes writes: “To be honest, it’s hard to blame Mickelson – who has compiled a net worth approaching $180 million by repeatedly striking a tiny white ball until it falls into a hole — for putting all options on the table, which according to some, include the possibility of prematurely shutting down his career to avoid his rising tax burden.”

The link goes to a Twitchy story that quotes a tweet from golf blogger Scott Michaux:

That tweet, however, appears to have been replaced by this one:

I should clarify that “shutting down” spec was reference to cryptic Stricker semi-retirement question. We’ll see what “drastic change” means

— Scott Michaux (@ScottMichaux) January 21, 2013

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Comments (157)

forgetyou
Posted on January 22, 2013 at 6:24pm
I do not understand this statement of the rule of law. I do understand the statement of the man with the gold makes the rules. The mob is not dead it has just moved from Chicago to DC and when your part of the mob you do not rock the boat. So you need to stop complaining and get a job in a union or getting a job with the mob [ government].

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Mike76
Posted on January 22, 2013 at 4:29pm
This story was the topic of discussion on a lot of talk radio shows today. The consensus seems to be that people who are getting hosed in Northern/Liberal/Blue states should move to Southern/Conservative/Red states that are tax and business friendly. Please, for the love of God, stop enticing carpet-baggers to move down South. They come here and everything’s fine at first – then there’s a problem at their kids’ school, or they get laid off from a job, or there is a slight bump in crime rates, and the next thing you know, these transplants fall back to their liberal roots and start pushing for ordinances and unions and laws that look an awful lot like the same ones that caused them to flee wherever they came from in the first place. The liberalism doesn’t leave them when they move South, it just lies dormant until there’s an opportunity to create the same bad atmosphere here they had back home. Just look at Durham, Raleigh, Houston, Austin, Knoxville, Atlanta, the entire State of Florida, and Chattanooga – they’re all starting to look and behave like Detroit and Chicago.

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jagape
Posted on January 22, 2013 at 1:17pm
Remember now…people that voted for the tax hike hate those of us who have worked our buns off to make a wad. They, the lazy illiterate haters would rather vote for more taxes because they are not paying taxes!!

Mickelson worked his ass off to be able to play golf as well as he does.

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Ron Staiger
Posted on January 22, 2013 at 7:47am
It’s funny, everyone scoffs at France’s 75% tax on rich people but we’re not far behind under Barack Hussein “Bobby Sowetto”Obama. Phil is an evil man to think he’s entitled to HALF of the money HE earned. I mean, this is a country full of TAKERS now as the generation of GIVERS gets too old to GIVE anymore so we need more mega-rich like Phil to give up more of their evil capitalist money to our Mrxist-minded needy. And you morons voted, (repeatedly I might add), for four more years of this crap! Goodbye Phil, enjoy your retirement in Monaco.

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RedDawn2012
Posted on January 22, 2013 at 7:11am
So what’s stopping him from moving to Monaco?

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DiamondGoddess
Posted on January 22, 2013 at 4:01am
Phil could be referring to retiring, but I think it’s more likely he’ll pull a “Depardieu” and change his citizenship to a more success/wealth friendly country.
I, too, am tired of paying for a the lazy leeches in this country; who not only get free EVERYTHING, but don’t even bother to show up for their free medical care appointments!!! (I know someone who just did this today. He slept all day, instead. True story.) And then they b!t@h and moan that the free stuff isn’t enough, as though success just descends on people! (Well, it doesn’t if you sleep all day.) LOLs!!! Good times (watching them spin ).
The lack of personal responsibility in this country is just astonishing. (Who’d settle for the equivalent of about $10 an hour to live off of, anyway? Welfare freaks are idiots!)
I’ll be heading to Monaco, myself.
(I, for one, am L-U-R-V-I-N’ all the push-back that is already happening to the tax increases, etc. LOVE IT!!!)
Those of us who take responsibility for ourselves do fine, but there are growing numbers of people who won’t do that.
Fine. Let them have the life they’ve chosen, but no longer on MY dime!!!

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Bangstick
Posted on January 21, 2013 at 11:38pm
Only worth $180mil? How is he ever going to survive? lol

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Endstatism
Posted on January 21, 2013 at 11:37pm
Please bear with me, my comment are purely sarcastic and I`m engaging in parody.
Michelson is greedy and doesnt want to pay his fair share. He wants to starve children and force seniors to eat dog food to pay for their medicine. In fact Phil is probably a racist sexist and homophobe because he doesnt want to pay his fair share in taxes

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screamineagle
Posted on January 21, 2013 at 10:47pm
I Don’t Understand His Thinking,,,, They Are Allowing Him To Keep 34%,,,,, They Only Want 66% Right Now…… When Everyone Pays Their Fair Share,,, 66%, Then America Will See The Whole Picture,,,, Everyone, Including Those Who Make $20000 Ought To Pay Their Fair Share,,, EVERYONE Should,,, Equal Across The Board.

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indy1
Posted on January 21, 2013 at 10:13pm
The lib media and the lib sports writers are going to demonize Phil. He must be destroyed to serve as an example to others not to stray from the socialist line.

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dadsrootbeer
Posted on January 21, 2013 at 9:22pm
Why would anyone live in Califreakonia? Especially if you make a decent buck. Let the 47 percenters who pay zeo tax and get all of the government goodies have the broke state.

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Jerbear1098
Posted on January 21, 2013 at 9:07pm
Hummm…. I’m betting he announces he’s moving to Texas.

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Richard Rider
Posted on January 21, 2013 at 8:34pm
If Phil has a$180 million net worth as reported, then he probably has at least $5 million annual income from those assets. Plus, even if he retires, he’d still be getting millions in endorsement pay — I’d guess close to $10 million.

Hence if he has a $15 million annual income, he still has a HUGE incentive to leave high-tax California, a place he loves — but love has its price. And it’s a price he may no longer be willing to pay, given the new 13.3% CA income tax rate for millionaires.

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dantamblo
Posted on January 21, 2013 at 7:37pm
Way to go, Phil !
ALL of US need to send a message to Washington:
NO MORE TAXATION ! STOP SPENDING MONEY YOU DO NOT HAVE !!! WE, the PEOPLE, are not your solution to your problem!

And everyone write and call your senator and congressman and tell them: NO MORE !

And stop voting for these crooks.

Dantamblo.com Author of Seeds of Death Regin or Die

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Beachmastermax
Posted on January 21, 2013 at 7:21pm
Doesn’t Phil know that Barry can do a better job at vote buying, I mean spending and investing his money than he can?

Phil, Barry needs your money to buy the Padres, so HE can create the jobs. Nieghborhood extortionist always make better spending decisions than disciplined competitors! Besides, Barry shot 18 holes in one in just one round of golf, just like Kim Il Jung, so who wants to watch you anymore?

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llib
Posted on January 21, 2013 at 7:04pm
one of the only class acts left in sports

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cosmo101
Posted on January 21, 2013 at 5:50pm
Between Obama (fed) and Gov. Brown (state) being successful in California doesn’t work anymore. Since Phil has health issues, my guess would be Nevada or the other southwestern states. A short trip back and forth.

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Southernsoul
Posted on January 21, 2013 at 5:40pm
I wonder how he voted in California for the last 20 or so years? Wonder who voted for as President last 2 elections?

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Larry E
Posted on January 21, 2013 at 5:34pm
I can’t understand how anyone who works for a living or has worked and is receiving a pension or has investments that are enough to put food on the table and a roof over their head stays in Kalifornia. Maybe it’s just my terminal ignurrunts or something.

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The Third Archon
Posted on January 21, 2013 at 4:47pm
Aww, he’s only going to make $600k instead of $800k per annum for a recreational activity, how SAD :’(

LOL–1st world problems.

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- Mike76
  Posted on January 22, 2013 at 4:37pm
  It makes no difference how much money is at stake or how much he earns. If someone came to your home and began taking what you had worked to have, you would call this stealing – you would expect the thief to be punished. Do you think that because you don’t earn as much as Mickelson you are somehow more entitled to keep yours than he is to keep his? What right do people in Kalifornia have to take what belongs to him? Where do people like you come up with this logic?
  
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Ragnar48
Posted on January 21, 2013 at 4:40pm
Athlete Shrugged.

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- The Third Archon
  Posted on January 21, 2013 at 4:49pm
  Because if all the pro-golfers quit we wouldn’t, GASP, be able to watch golf on Sundays! Oh the HUMANITY!
  
  Oh, wait, no–there’s actually probably millions of people who, to anyone not an expert in golf, are probably indistinguishable in skill level at golf willing to take their place for a quarter the salary they are paid.
  
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LowTax
Posted on January 21, 2013 at 3:42pm
Good for Phil, saying what many are thinking and going to do. The producers will start to make moves because of oppressive taxes on the hard working/successful by these state and federal legislatures. This administration is making socialism part of their agenda and you know what they say about socialism, sooner or later you run out of other people’s money. Hello Greece! The US has a spending problem, not a revenue problem. They want to fix the problem by taxing success while handing it out to the freeloaders. Phil is not a fan of redistribution, hopefully others will follow his lead! Let Hollywood pay more if they choose, but they won’t.

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- bobbiejean
  Posted on January 22, 2013 at 3:18am
  Lowtax, You’ve got that right on Hollywood. Why do you think they shoot so many of
  their films out of the US? Puzzling, since they, also, seem to be gaga over the Prez.
  They’ll raise money for his campaign but don’t want to pay higher taxes? UnAmerican!
  
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SPOON
Posted on January 21, 2013 at 3:35pm
It would be un-Patriotic and rather cowardly to leave his native land, but considering the substantial millions he must pay to the government, I understand and accept his position. I guess he could stay with golf as part of the grounds crew where he wasn’t making the big bucks his talents has brought his way.

Once again, these are truly SAD TIMES for America and I foresee things worsening at an accelerated pace.

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darrelljr
Posted on January 21, 2013 at 3:20pm
Thats the great freedom of every American- to vote with their feet.

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Kathleen3
Posted on January 21, 2013 at 3:10pm
I applaud Mickelson for speaking out. Why would anyone expend their time, talents, and money supporting leaders (and I use the term loosely) who are hellbent on living like kings on Mickelson’s tax dollars and spending the rest on people who choose not to work but passionately support the leaders who redistribute Mickelson’s earnings?

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