Those making over $500,000 a year in California will pay the highest rate of 12.3% on 2012 and 2013 income. I posted a full summary of the rates and changes here:
Many have claimed some might get tired of this nonsense and leave the state. This weekend, 42-year old PGA Tour star Phil Mickelson, with $67 million in PGA Tour earnings which does not count his endorsement income that can be far more, said he would make drastic changes because of higher Federal and California taxes.
"It's been an interesting off-season," Mickelson said. "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."Mickelson did not rule off just flat-out retiring from golf. "I'm not sure what exactly, you know, I'm going to do yet," he 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.Mickelson could save as much as 12.3% just by moving to Florida where there is no state income tax. He's on the road most of the year so staying in California might be more of a family decision. From Phil Mickelson warns of ‘drastic changes’ because of state, federal tax situation
"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%. So I've got to make some decisions on what I'm going to do."
He acknowledged that he could end up leaving his home state of California. And he further agreed that the financial issues were the reason why he pulled out of an ownership team that purchased the San Diego Padres back in August.This is the first I've heard of people making a decision NOT to invest in CA due to the higher taxes.
Today Tiger Woods, in his Tuesday morning news conference before this week's Farmers Insurance Open at Torrey Pines, said he agrees with Phil Mickelson.
"Well, I moved out of here back in '96 for that reason. I enjoy Florida, but also I understand what he was, I think, trying to say. I think he'll probably explain it better and in a little more detail."Of course, Intel builds its factories outside of CA even though its headquarters is here and the whole Silicon Valley used to be full of expensive (high property tax) chip making factories. They are almost all gone now... gone to states with lower tax rates.