Phil Mickelson had it right the first time.
On Sunday, the four-time golf major champion made headlines when he said he was thinking about making “drastic changes” in his life — i.e., relocating from California — because of high taxes. Tuesday, he apologized.
“I shouldn’t take advantage of the forum I have as a professional golfer to try and ignite change over this issue,” he said. He has no problem paying his “fair share” and said it had been “insensitive” for someone in his position to complain about taxes and finances at a time when so many other Americans are out of work.
Far from insensitive, the conversation Mickelson teed up earlier this week is a public service — especially for Americans having trouble finding work.
The simple truth is that when high taxes push the successful out of state, it’s not the wealthy who pay the price. In fact, they’re moving to save money.
The big losers are the states, which see their revenue base eroded — and the unemployed, who suffer when the people who create jobs no longer find their states attractive places to invest.
Mickelson lives in California, which just jacked up its top income-tax to 13.3 percent. That puts his total federal and state tax bill, he fears, somewhere near 60 percent. But he could have as easily been talking about New York, New Jersey or Connecticut. As the Tax Foundation notes, the tri-state area is right behind California in imposing extortionately high state-local tax burdens.
In his new book, “How Money Walks,” Travis H. Brown notes the consequences of these high rates in terms of wealth that has fled to more welcoming climes. Between 1995 and 2010, says Brown, IRS figures show that $58.6 billion left New York; $18.5 billion left New Jersey, and $6.9 billion left Connecticut. Much of the money moved to Florida, which has no income tax.
We have no idea what state will prove most attractive to Phil Mickelson. All we know for certain is this: New York is not even in the running.