A recent high-profile refugee from the Golden State’s excessive tax burden is professional golfer Phil Mickelson. Mickelson expressed his displeasure with California’s recent tax hike binge, saying he would have to make changes in response to the new rates, and received some backlash for his opinions.
In an interesting sign of taxpayer solidarity, Tiger Woods was asked about Mickelson’s comments and backed up his tour colleague’s feelings on the matter, saying: “I moved out of here back in ’96 for that reason. I enjoy Florida, but I also understand what I think he was trying to say. I think he’ll probably explain it in a little more detail.”
A heartwarming sign for taxpayers feeling the heat as governments at every level largely fail to manage their budgets responsibly.
As Forbes Contributor Robert W. Wood noted, athletes and entertainers are usually taxed excessively no matter which state they hail from, but successful California residents are subjected to a whole host of additional taxes:
When you are a resident–as Mickelson is of California at least for now–you get taxed on everything. Most PGA Tour players live in no-tax states like Florida or Texas. Controversially, California residents voted in November to raise tax rates to 13.3% from 10.3% for those making more than $1 million. Still, Mr. Mickelson was measured in his remarks. Many are much less so and headed for the exits.
On the East coast, Maryland presents another example of how harsh tax rates on the so-called “rich” drive upper income earners away and leave revenue-hungry states with even less to fund their budgets. The Wall Street Journal takes a closer look at how the Old Line State’s misguided fiscal policies have shrunk, not swelled, the state’s treasury.
One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a "substantial decline." On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates.
Will fiscally irresponsible lawmakers ever stop playing “whack-a-millionaire” and get their budgets in order? Hopefully high profile examples of the damage these punitive tax hikes cause will force them to start controlling spending.