Phil Mickelson speaks out on taxes: may move and/or retire

[Chesapeake Spirit]

It appears that Mr. Mickelson may have been exaggerating a bit as well.

"Regardless of Mickelson's top rates, his actual tax bill isn't anywhere near one-half of his income. While it's hard to tell what the golfer really pays without seeing his tax returns, millionaires pay roughly 26% of their income in federal taxes, on average, according to William McBride, chief economist at the Tax Foundation."

http://finance.yahoo.com/news/truth-...224800245.html

[pickles]

It appears that Mr. Mickelson may have been exaggerating a bit as well.

"Regardless of Mickelson's top rates, his actual tax bill isn't anywhere near one-half of his income. While it's hard to tell what the golfer really pays without seeing his tax returns, millionaires pay roughly 26% of their income in federal taxes, on average, according to William McBride, chief economist at the Tax Foundation."

http://finance.yahoo.com/news/truth-...224800245.html

In fairness to Phil, he actually earns his money so I'm sure his tax rate exceeds that.

Unlike certain recent Presidential candidates.

[Chesapeake Spirit]

In fairness to Phil, he actually earns his money so I'm sure his tax rate exceeds that.

Unlike certain recent Presidential candidates.

If you are referring to the 26% figure, I agree. 62%, not so much.

[pickles]

If you are referring to the 26% figure, I agree. 62%, not so much.

Yeah I'm referring to the 26% figure.

I thought it had been well calculated that his tax rate, unless he's intentionally paying more than he needs to, doesn't exceed 52%.

[demopublican]

Very well - If he is America he should pay his fair share. If he wants to leave then by all means get out. Since he is an athlete, he should pay a bit more than those in the middle class that are actually doing something worthwhile. He won't like me saying that but athletes do seem to get preferential treatment these days.

So pass a law. A special 75% Athlete, Celebrity, and Entertainer Tax.
I think it is a wonderful idea. Perhaps the best I have heard in years.

[Grindelwald]

demo-

Is that sarcasm or sincerity?

[demopublican]

demo-

Is that sarcasm or sincerity?

As long as all of the Hollywierd liberals get the same tax I am ok with it.

[demopublican]

As long as all of the Hollywierd liberals get the same tax I am ok with it.

The really rich ones will come up with creative pay plans that funnel most of the cash through studios set up in the Caymans or whatever. They will be entertainment for us. Watching the pro tax Limousin liberals find creative ways to avoid the high taxes that they think are so fantastic for all of us.

[SalisburySage]

I am sick of this story. Who cares. What does it matter???. Puhlease.

[kudzu]

This guy hits a golf ball for a living. He should pay his fair share.

What is his fair share?

What is his fair share?

Exactly.

Who determines his "fair share" ?

Not a hardcore liberal, that's for damn sure.

[bmorepunk]

His fair share is 62%. What's yours? I bet if you had to pay that much you won't be cartwheeling for joy either.

No it's not; he doesn't have to pay 62% as evidenced in this post where the situation is explained. It may be as high as 52%, but unless he's the dumbest rich guy in America he's not paying that much. Regardless of whether it is "fair" or not his statement is wrong. An increase of 7.9% to his total? Sure, I'll just assume he's paying all of that to the max. But then he's adding 10%.

[Omaha Beach]

As long as all of the Hollywierd liberals get the same tax I am ok with it.

What is ridiculous is the same liberals condemning Mickelson for this episode had no problem with zillionaire John Kerry buying a yacht in New Hampshire instead of Massachusetts in order to save money on sales tax or fellow zillionaire Algore selling his cable interests before the first of the year to save money on taxes. The double standard never ends.

[Omaha Beach]

As long as all of the Hollywierd liberals get the same tax I am ok with it.

What is ridiculous is the same liberals condemning Mickelson for this episode had no problem with zillionaire John Kerry buying a yacht in New Hampshire instead of Massachusetts in order to save money on sales tax or fellow zillionaire Algore selling his cable interests before the first of the year to save money on taxes. The double standard never ends.

[demopublican]

What is ridiculous is the same liberals condemning Mickelson for this episode had no problem with zillionaire John Kerry buying a yacht in New Hampshire instead of Massachusetts in order to save money on sales tax or fellow zillionaire Algore selling his cable interests before the first of the year to save money on taxes. The double standard never ends.

That is because Phil did something that those two never even considered: he told the truth.

[Cynic]

You have the right to speak out no matter what your net worth is. If he's serious about leaving the US to evade taxes I doubt he would announce it publicly...

THE USA taxes WORLDWIDE income.

It is practically the only nation that does so.

So even if he moves he still has to file here in the USA.

He has to file reporting forms with the Treasury and IRS on all accounts (that he has signatory power over, which includes any business accounts), and all assets.

Each year.
Or the fines will ruin him.

And good luck getting any accounts set up these days in Europe, or anywhere else for that matter:
USA citizens are now considered 'toxic' customers, and are now refused accounts / investments by banks outisde of the USA due to the new FATCA reporting requirements.

Plus the new country will want him to pay taxes there too....

Thus, if he moves anywhere civilized, he will probably wind up paying more over the long run (taxes, tax and reporting preperation, lost investments, ect.)

-Cynic

[Cynic]

Move down here to Maryland and i bet you a bushel of oysters you would be complaining as much as Phil. He doesnt and has never said anything about leaving the country to avoid taxes like those good dems George Clooney and Johnny Depp. He can just move to Florida or Pa. for lower taxes. You know States controlled by Republicans.

You do not have a clue over the tax laws for those living outisde of the USA, do you?

The USA taxes citizens on WORLDWIDE income, no matter where they live.

If you are a USA citzen living outside of the USA, say in France, you are required to file with the IRS each year, just as if you were in the States.

PLUS you are required to report all financial accounts (each year) to the treasury (FBAR), and accounts & assets ie. house, car, insurance policies (FATCA legislation) to the IRS.

Doesn't matter if you are a housewife, a researcher, an english teacher, an actor or a student or a billionare.

Many people are not aware of this and think they have no longer have a tax obligation to the USA if they live somewhere else, and get a REALLY nasty suprise when the IRS catches up to them.

And catch up they will.

Under FATCA all banks (world wide) will have to report info on USA clients to the IRS each year. This is why most banks are choosing to close accounts with USA citizens, and banking services are increasingly unattainable for a US citizen living overseas.

They can check your tax return status entering & leaving, and can refuse to issue a passport if you are behind on taxes.

The idea that moving to Europe is an effective way to dodge taxes is laughable, considering you now have a tax liability in TWO countries.
(two sets of tax laws and forms each year, plus tax treaties, and extra reporting requirements. fun, fun!)


-Cynic

[Cynic]

Neither he nor you have to live in the US. Good luck finding somewhere you would even consider living with lower taxes.

Another clueless person when it comes to USA tax laws for those living outside of the USA.

WORLDWIDE income is taxed on a USA citizen, regardless where you live.

You could be living under a rock somewhere in Siberia and the IRS is going to want to see you file, report all accounts to the Treasury, and all accounts and assets to the IRS.

Each year.

or bye bye passport and hello financial ruin through fines, and penalties.

As many a retiree, spouse, exchange student, teacher, or dual citizen children (who were not aware of the USA citizenship and or the reporting requirements) outside the USA have found out.

It is truely amazing how many people are not aware of the tax law.

-Cynic

[Omaha Beach]

Another clueless person when it comes to USA tax laws for those living outside of the USA.

WORLDWIDE income is taxed on a USA citizen, regardless where you live.

You could be living under a rock somewhere in Siberia and the IRS is going to want to see you file, report all accounts to the Treasury, and all accounts and assets to the IRS.

Each year.

or bye bye passport and hello financial ruin through fines, and penalties.

As many a retiree, spouse, exchange student, teacher, or dual citizen children (who were not aware of the USA citizenship and or the reporting requirements) outside the USA have found out.

It is truely amazing how many people are not aware of the tax law.

-Cynic

Ok expert so if i transfer all my assets outside of the US and move to a country like Brazil or Costa Rica that does not have extradition with the US how is the IRS going to enforce those fines and penalties and prosecute me?

[Cynic]

Ok expert so if i transfer all my assets outside of the US and move to a country like Brazil or Costa Rica that does not have extradition with the US how is the IRS going to enforce those fines and penalties and prosecute me?

I can think of a number of ways.

From arresting you at the border next time you enter the USA,
to just not renewing your passport and thus forcing your return to the USA.

For most residency visas in other nations are tied to you having a valid passport.

Or making financial hell for any bank that has you as a customer and does not report your information to the IRS, or maybe even even with hold taxes for the IRS, which is exactly the intent of FATCA.

Thus the assumption you can still find a bank / finance institution outside of the USA willing to work with you in itself maybe flawed, for increasingly expat US citizens are denied investment services and accounts by banks outside of the US. For you are too big a risk, which could theoretically cause them 30% of their US assets being witheld.

So, if you were willing never to set foot in the US again, risk living in a third world mud hole as an illegal immigrant, jobless, just doing cash transactions and hiding your fortune in a matress....

-Cynic

[Omaha Beach]

I can think of a number of ways.

From arresting you at the border next time you enter the USA,
to just not renewing your passport and thus forcing your return to the USA.

For most residency visas in other nations are tied to you having a valid passport.

Or making financial hell for any bank that has you as a customer and does not report your information to the IRS, or maybe even even with hold taxes for the IRS, which is exactly the intent of FATCA.

Thus the assumption you can still find a bank / finance institution outside of the USA willing to work with you in itself maybe flawed, for increasingly expat US citizens are denied investment services and accounts by banks outside of the US. For you are too big a risk, which could theoretically cause them 30% of their US assets being witheld.

So, if you were willing never to set foot in the US again, risk living in a third world mud hole as an illegal immigrant, jobless, just doing cash transactions and hiding your fortune in a matress....

-Cynic

Really? I guess you never heard of Robert Vesco.